Belt and Road Weekly Investor Intelligence #93

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There’s something for everyone this week as a plethora of trade and development news arrives impacting all of Eurasia and beyond as the BRICS grouping attracts interest from an increasing number of potential members. China-EU rail freight continues to increase despite rumors about its demise, while both Turkiye and Iran show increasing trade volumes. Russia is active in maritime routes affecting Asia, while new zones in Malaysia and Vietnam attract FDI. Tajikistan has had an impressive H1 2022 with foreign investment more than doubling. All are partially a result of the shifting geopolitical landscape as supply chains shift and new trade routes are activated.       

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EUROPE  

China-EU Railway Freight Via Russia Continues To Operate Full Steam Ahead  

Chinese companies bypassed sanctions and arranged their own mechanisms of settling payment of fees payable to Russian and Belarus railway operators. 

MIDDLE EAST   

Russia And Türkiye Agree To Trade In Rubles And Dump US Dollar 

Plans to increase bilateral trade to US$100 billion by 2030.   

Iran’s Regional Foreign Trade Volumes Increase  

Iran’s trade with Russia, Turkiye and EAEU all show increases.  

CENTRAL ASIA   

Tajikistan Foreign Direct Investment Doubles In H1 2022 

Most investments are from China into mining gold and semi-conductor applicable minerals.  

SOUTH ASIA   

Malaysia Extends Income Tax Incentive Applications for the East Coast Economic Region 

The ECER is one of three economic corridors in with the aim to accelerate economic growth in the country. The incentives include up to 100 percent income tax exemption.  

Vietnam’s Key Investment Industries and Destinations 2022 –Dong Nai for Manufacturing 

As global businesses seek to diversify, increase resiliency and connectivity of their supply chains and decrease reliance on a single country, Vietnam has become a top destination for investment in manufacturing due to its strategic location and advantages in shipping, competitive labor, and production costs.  

RUSSIA  

New China-Russia Maritime Routes Emerge as Trade Booms 

Chinese and Russian companies have been organizing regular chartered ships to ensure that much-needed goods such as raw materials can be delivered from Russia to countries such as China and India amid a transport inadequacy due to the continuous disruption posed by the West’s sanctions on Russia.  

Russia Issues Northern Sea Route Development Plan To 2035 

Agenda cuts Europe Off From All Russian Arctic Resources And Concentrates On Asian Customers.  

Russian Auto Sales Recover, Domestic, Chinese Brands Most Popular 

Russian and Chinese brands are improving their positions, South Korea’s Kia and Hyundai have maintained market share, while European brands such as Renault, VW, and Skoda are all losing share as stocks are depleted. 

BRICS 

Algeria Expresses Interest In Joining BRICS 

Algeria looking to choose globalization over US and EU policies.   

Lavrov Talks Up BRICS As US, EU Alternative 

Non-politicized, inclusive fair trade being touted as a replacement to the West’s operational methods. 

BELT & ROAD INITIATIVE   

China’s Belt & Road And Beyond        

All the latest global headlines about China’s Belt & Road Initiative.        


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Dezan Shira & Associates provide business intelligence, market research, legal, tax and compliance issues for foreign investors throughout Asia, and have 28 offices across the region. We are members of the Leading Edge Alliance, a network of related firms with offices throughout the world. For assistance with Belt & Road Initiative research, please contact us at silkroad@dezshira.com or visit us at www.dezshira.com. To subscribe to our Belt & Road Initiative portal, please click here.