BRI to keep shining over next decade
8 Jan 2024


There are five focal areas of BRI development looking ahead to the coming decade, including education, new digital basic infrastructure, finance, agriculture and healthcare, some of which are "small yet smart" projects that will significantly improve the livelihood of people in BRI partner countries, especially to the developing countries. The emphasis also echoes with the goal of BRI to build a global community with a shared future.


Take finance as an example. Some BRI partner countries lack modern financial systems and financial trading markets, a key in financing and the expansion of the private sector. On the other hand, China has mature financial markets, as exemplified by the various stock exchanges in Beijing, Shanghai and Shenzhen as well as the Hong Kong Special Administrative Region. Under the BRI, not only will China help the developing countries to build modern financial system, but also in newly emerging fields such as fintech and green financing.


In the next decade, the global geopolitical landscape will become more complex and present greater uncertainty. It is likely that the US could further abuse dollar hegemony and weaponize the dollar to impose unilateral sanctions that endangers global financial order. Against the backdrop, it is important that BRI partner countries sign more local currency swap deals with China, expand the use of Chinese currency yuan in trade, payment, and global settlement. And the joint building of a global yuan payment system could then provide a shield against arbitrary hegemony practices that could weight on a country's development prospects.


I believe that with strengthened BRI economic cooperation, the yuan is poised to become the third largest global currency after the dollar and euro in the next decade. The Chinese yuan is currently the world's fifth most traded currency after the dollar, the euro, the UK pound and Japanese yen. Overtaking the Japanese yen could take place in the next three to five years.


Source: Peng Pai