11 facts you should know about the vision

6. The initiative will help China better address the new normal in economic development.

Xue Li, a senior research fellow at the Chinese Academy of Social Sciences' Institute of World Economics and Politics  / CHINA DAILY

The Belt and Road Initiative is in line with efforts to facilitate China's economic transformation. Chinese enterprises are seeking to leave the lower end of global value chains and manufacture more high-value-added products. A rise in labor costs and excessive capacity will inevitably drive Chinese companies to explore markets in neighboring countries, which also welcome China's assistance, for instance, in infrastructure.

It can be challenging to persuade labor-intensive private enterprises to venture across borders, as their founders, who are often aging but still in charge, find it less appealing to explore overseas markets. But it is a step that has to be made considering the economic transitions, and the initiative could present game-changing opportunities.

By placing underdeveloped western Chinese provinces and regions at the forefront of the process of opening-up, the initiative also has great potential to narrow the development gap between China's east and west.