Belt and Road Weekly Investor Intelligence, #17

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Tuesday, February 23, 2021

Welcome to this week’s issue of China Briefing’s Belt & Road Initiative Weekly Investor Intelligence round up.

In this issue, we take a strong look at the regulatory environment along the BRI and how foreign investors can get involved in the opportunities available due to the new BRI infrastructure build. We examine the pitfalls that governments and businesses need to be aware of when negotiating with China and examine the specific technical opportunities because of a lack of operational expertise in some BRI countries. There is a free ‘Doing Business in Russia 2021’ guide and explanation of how China is managing its debt negotiations with distressed BRI nations.

Opportunities, Risks, and Potential Within the Belt & Road Initiative 2021

China has placed its Belt & Road Initiative at the heart of its foreign policy, placing it at the center of its updated Foreign Aid Program and re-stating it is a core pillar of its foreign trade policies. While China’s BRI is not a free trade bloc, countries who have signed off on an MoU with China concerning this have seen benefits in increased trade and investment.

Foreign Investment Opportunities for International Operational Contractors

The business, financing, and operational model for China’s Belt and Road Initiative is having to change due to unforeseen difficulties in procuring localized talent to run and manage completed projects. With a shortage of management and operational skills, China is now having to provide project support in addition to policy financing, meaning there are opportunities for foreign banks, operational contractors, and management training institutes to get involved.

Managing Pitfalls When Negotiating Belt & Road Projects

Negotiating with Chinese entities be it government, state-owned, or private enterprises requires an understanding of Chinese laws, regulatory systems, and culture. This then needs to be married to local laws and regulations in the projects domicile as well as the respective laws and regulations that may govern other interested parties. It is unwise to lead negotiations without China experienced personnel.

New Complimentary ‘Doing Business in Russia 2021’ Guide Published

This excellent guide is designed to introduce the fundamentals of foreign investment into Russia. It includes a market and foreign trade overview, details of trademark registrations and IP, corporate establishment, tax advisory and compliance, a guide to Russia’s Double Tax Treaty Agreements, a directory of free trade zones, applicable tax incentives, together with bookkeeping, accounting, payroll, recommended software, and audit requirements.

China Using Paris Club Creditor Methods to Extend Debt Treatment for Belt & Road Initiative Repayment Holidays

China has reportedly been following Paris Club creditors mechanisms to provide appropriate debt treatment for countries struggling with Belt & Road infrastructure build debt repayments. The Paris Club is a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.

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