As the G20 meeting in Turkey promoted global cooperation under the banner "collective action for inclusive and robust growth," the world can't overlook another initiative linking countries for mutual benefit -- the Belt and Road. [Special coverage]
This vast network of improved regional trade infrastructure proposed by China is getting stronger and stronger, benefitting businesses in countries along its route, which roughly follows the ancient Silk Road.
G20 is a major international platform to coordinate economic policies for inclusive growth, and Belt and Road initiative is one such policy aimed at common growth, said Wang Yiwei, an international relations expert with Renmin University of China.
"The Belt and Road initiative, along with other proposals of BRICS New Development Bank and Asian Infrastructure Investment Bank, are creative and substantial projects to achieve growth both for China and the relevant countries," he said.
The Belt and Road initiative, which focuses on industrial cooperation and improvement of infrastructure, has spurred economic cooperation within different countries. More Chinese companies, particularly in the western hinterland, are seeking partnerships with foreign counterparts as the Belt and Road develops.
Spark Machine Tools is a major Chinese machine tool producer based in the northwestern Gansu Province. It has already made it into southeastern Asian and European markets, but it is hoping to expand its reach.
"The initiative has opened our minds and encouraged us to be more visionary," said Guo Jianhui, the company's CEO.
In 2008, Spark acquired French firm Somab and partnered with Germany's WMH to produce gears. In 2014, Spark's French branch sold 100 million yuan's (about 15.8 million U.S. dollars) worth of machine tools.
"We hope to cooperate with more European firms to build smarter tools," said Guo.
Another company in Gansu, Tianshui Huatian Technology Co., Ltd, a semi-conductor producer, acquired U.S. firm FlipChip International, in 2014. Analysts said more Chinese companies are expected to explore business opportunities brought by the initiative.
According to China's Ministry of Commerce, in the first six months of this year, Chinese companies invested 7 billion U.S. dollars in 48 countries along the Belt and Road, up 22.2 percent year on year. Chinese firms inked 37.5 billion-dollar contracts with countries along the route, up 16.7 percent year on year.
Chinese provinces plan to invest in infrastructure. For example, Gansu intends to spend 800 billion yuan to build 70,000 km of railways and highways in the next six years.
Hu Yuwei, a world economy researcher with Renmin University of China, said G20 countries, about 90 percent of the world's GDP, is the bulk of world economy, but looking into the future, Belt and Road countries are expected to contribute to 80 percent of global growth in 2050.
"Belt and Road countries overlap with G20 countries, and the two entities have mutually communicable aims. Fully integrated, they can boost global economic development," said Hu.
China will host the next meeting of G20 leaders in 2016. "China is fully prepared to share economic growth with other countries, both within the Belt and Road mechanism and also in the G20 organization," Hu said.
