Strengthening regional connectivity
Vaughn Barber, global chair of KPMG Global China Practice
A1 The BRI is a comprehensive and inclusive vision and action plan for addressing the development needs of emerging markets and developing countries. China's own experience shows that infrastructure development supports and leads to broad-based economic and social development. Similarly, the BRI is built on the premise that raising living standards and prosperity in, and strengthening connectivity with developing countries will be good for global economic growth because it will unlock new demand for goods and services.
A2 We are seeing opportunities for our Chinese and foreign clients in three key areas. First, the BRI has focused global attention on the question of how to attract private capital into infrastructure projects in developing and emerging markets. A second key area is for companies to expand to emerging markets where new demand is being created as a result of the economic benefits from improved policy, infrastructure, trade, financial, people and digital connectivity. A third key area is digital connectivity. In the same way that digitalization has become an important driver and enabler of transformation for companies operating in the Chinese market, we see a lot of potential for new technologies and business model innovations developed in China to have a positive impact on social and economic development in emerging markets.
A3 During the inaugural Belt and Road Forum for International Cooperation, we announced that KPMG has formed a KPMG Belt and Road Centre of Excellence. We will continue to mobilize expertise and resources from around the KPMG global network to support our clients in China and abroad to uncover and convert opportunities from the implementation of the BRI. To this end, a main area of focus will be helping leading foreign companies to identify new opportunities to work with leading Chinese companies in China, in their home markets and in third country markets.
A4 Given the relative lack of understanding about the opportunities for foreign companies in BRI projects, it is important to profile success cases to demonstrate the new business opportunities which can be achieved from international collaboration amid the BRI development. Developing and piloting new approaches to utilize private capital in international infrastructure projects in Belt and Road markets is another area that is ripe for international collaboration among governments, multilateral institutions, industry associations and businesses.
A5 To better participate in the BRI development and resolve problems, we will work with stakeholders in China and abroad to facilitate more sustainable, inclusive and commercially viable infrastructure projects that can attract private capital, deliver inclusive economic growth and provide opportunities for greater infrastructure trade and investment cooperation between Chinese and international companies.
