ABSTRACT
The existing literature suggests that China’s rationale for the belt and road initiative was to stimulate infrastructural investment abroad and thus economic growth at home, foster economic ties with Eurasia, and counter the US pivot to Asia. Employing a domestic political economy perspective, this article suggests that the Belt and Road Initiative (BRI) aimed to address China’s three following vulnerabilities that could derail its economic growth and threaten its political regime—industrial surplus capacity, massive imports of energy through maritime transport instead of safer land routes, and under-development of the western region. Addressing these vulnerabilities helps to sustain China’s economic model characterised by heavy reliance on investment and exports, protection of state firms, and massive energy input. Post-2012 data suggest that the BRI has partially mitigated these three vulnerabilities.
