ABSTRACT
This chapter discusses economic viability of certain Silk Road Economic Belt (SREB) and China-Pakistan Economic Corridor (CPEC) projects, but the importance of energy to the CPEC is illustrated by the fact that around $33 billion of the $46 billion announced for the project is aimed at energy infrastructure. It discusses importance of ensuring local benefit from Chinese investment is a key issue facing China. The German co-investment is also useful for Russia, demonstrating that Russia can still do business with Western European companies even if their governments are using economic sanctions as political protest against Russian foreign policy. The SREB and the CPEC also cover regions where China can transfer excess production capacity. The SREB is not an economic integration project, and more focused on investment in infrastructure development. Economic integration is part of the Belt and Road Initiative's rationale, as new infrastructure that traverses multiple countries or improves communications means there will be greater connectivity.
