ABSTRACT
Industrial capacity cooperation is becoming an increasingly important area of China’s Belt and Road Initiative (BRI). It also extends beyond this initiative, embracing the domestic industrial development strategies of participating countries. Over the past decade, China has developed relevant hard and soft infrastructure, including domestic and international policy frameworks, special economic zones, industrial parks, and financial mechanisms. These measures have facilitated many successful joint projects across industries and partner countries. Progress has been impeded by the—not always properly assessed—risks associated with long-term, capital-intensive projects in the sometimes challenging business climates and by macroeconomic and geopolitical headwinds. In the case of China’s partnerships with Gulf Cooperation Council (GCC) countries, joint energy and infrastructure initiatives overshadow cooperation in other industries. However, recent developments signal that China and GCC countries have begun to realize the immense potential in jointly developing industrial capacity—both in existing and new industries, especially those pertaining to energy.
