The estimated $5trn investment amount is significant, but smaller than China’s annual domestic fixed asset investments, which stood at nearly RMB 60trn ($8.8trn) in 2016, said Schroders head of China A-share research Jack Lee.
China’s State Council earlier estimated belt-and-road investments can top $8trn if fully implemented. Committed investments stand at $1.3trn.
“It’s a thematic investment, and it’s not that simple,” he said.
“We did see some smaller scale [mainland manufacturers] which are growing sales orders. And some sectors, such as railway equipment makers, have matured in technology and can win some businesses overseas.
“But we don’t consider the [one belt one road] theme will fundamentally change domestic companies. The new businesses [driven by one-belt-one-road projects] might offset the slowdown domestically, or induce small growth. China is just too big.”
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