The influence of the Belt and Road Initiative on competitiveness of China
Mei, Yan-Koponen (2019)
Mei, Yan-Koponen
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019090518195
https://urn.fi/URN:NBN:fi:amk-2019090518195
Tiivistelmä
Developing the economy is one of the means of strengthening a nation’s competitiveness. Launched in 2013, the Belt and Road Initiative (BRI) which was fully supported by the government was regarded as an ambitious strategy to make China a powerful country both geo-politically and economically. It was designed to stimulate trade, open new markets for Chinese products, and aimed to strengthen China’s connectivity with the world through investment, cultural exchanges and the construction of infrastructure.
The objective of study was to find out what the impacts of BRI were and to discover how the BRI can help China to improve its competitiveness. A qualitative approach was used to explore various kinds of data while Porter’s diamond model was used as a theoretical framework to help in analyzing China’s business environment. The primary data was collected through two semi-structured interviews with a professor and a researcher, and secondary data was retrieved from online reports and documents.
The results showed that China’s domestic business environment had developed after the implementation of BRI. This was demonstrated by upgrades in the country’s infra-structure; increases in GDP, PPP and trade; improvements in the quality of life; and the introduction of a series of policies and measures to ensure business outcomes. The results also showed government was found to play the main role in BRI, which is much greater than stated by Porter who claims the government only has a supporting role. The relations between countries was found to be very important in doing business. Limitation of the study was that the full impacts of BRI couldn’t be assessed because the project is not yet completed. Further research in BRI would be of great help in finding more evidences on how BRI could help China to improve its competitiveness.
The objective of study was to find out what the impacts of BRI were and to discover how the BRI can help China to improve its competitiveness. A qualitative approach was used to explore various kinds of data while Porter’s diamond model was used as a theoretical framework to help in analyzing China’s business environment. The primary data was collected through two semi-structured interviews with a professor and a researcher, and secondary data was retrieved from online reports and documents.
The results showed that China’s domestic business environment had developed after the implementation of BRI. This was demonstrated by upgrades in the country’s infra-structure; increases in GDP, PPP and trade; improvements in the quality of life; and the introduction of a series of policies and measures to ensure business outcomes. The results also showed government was found to play the main role in BRI, which is much greater than stated by Porter who claims the government only has a supporting role. The relations between countries was found to be very important in doing business. Limitation of the study was that the full impacts of BRI couldn’t be assessed because the project is not yet completed. Further research in BRI would be of great help in finding more evidences on how BRI could help China to improve its competitiveness.