ABSTRACT
This chapter discusses the developments in China’s international political economy, such as the Belt and Road Initiative which will help China to diversify its energy supply, export excess labour and construction materials during a period of economic slowdown, create a network of economic dependencies that will consolidate its regional leadership, and hedge against the United States’ alliance structure in Asia. On the part of recipient states, however, the anticipated benefits of trade expansion may be reduced by unfavourable trade balances with China, and debt burdens could decrease the flows of the infrastructure investments.
