CCTV-NEWS：赵克锋：BELT & ROAD INITIATIVE

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1.Where are you seeing the most investment interest out of the opportunities created by Belt and Road, sectorally and geographically?

There is a lot to invest. 65 countries along the B & R initiative constitute 65% of the world's population but only account for 29% of the world's total output.

Among those, changes in Russia have changed the landscape dramatically.

A while ago I met with quite a few economic ministers from the Eastern European countries. The Eastern European countries are facing severe economic problems due to the embargo of trade with Russia. They are desperately in need of selling their agricultural produce to the Asian markets. Among those, Poland is the largest trading partner in EE with China. With a cooperation mechanism established, there are mutual benefits. China now exports three times the total value that it imports from the EE. China exported about US$50 billions of goods to the EE last year.

Besides agriculture, the energy sector continues to be a key area which Russia and China play a great role. The 2013's China’s Action Plan for the Prevention and Control of Air Pollution illustrates the desire to increase the share of natural gas in China’s energy mix.  In May 2014 China signed a 30-year deal with Russia to deliver 38 billion cubic meters of natural gas each year. We should expect a growing industry along this line.

Another big player in the middle east is Saudia Arabia. It has the world's largest sovereign wealth fund and the oil giant Aramco. Following the blueprint of the Saudi Arabia's Vision 2030, they are looking to co-invest in opportunities around the region and beyond to diversify its portfolio amid falling fuel prices and the emerging clean energy technologies. They have been emphasizing  an interest to invest in China's downstream energy assets to help secure China's growing needs of energy.

Lastly, among other infrastructure, the industries of nuclear power, hydropower, high speed railway, aerospace and vessels continue to be flagship projects along the initiative.

2. Right now there is a lot of hype around Belt and Road, but not a lot of coolheaded analysis on returns and feasibility, tell us what we're learning so far from the failures: like the dropped and delayed high speed railway projects overseas?  

It is true that beyond economic feasibilities there is a hope to build friendship with countries along the initiative. With friendship comes longer-term economic profits.  Another aspect is that a lot of these investments are on infrastructure, which entails a long cycle of returns. It is just too normal to not see very immediate returns.

There are a lot of reasons for losing a contract. The first question we should ask ourselves is whether we are providing a better product with a cheaper cost. The second question is whether  we navigate the right way amid international politics.