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New trends, New challenges

Deloitte with B&R

Since its launch four years ago, the Belt and Road (B&R) Initiative has seen sustained implementation, achieved solid progress, and created new opportunities for enterprises to go global. At the same time, it has introduced new challenges as well. Throughout this period, Deloitte has leveraged its multidisciplinary competencies and global network across over 150 countries and territories to provide full-scope support for enterprises from different countries to engage in the B&R initiative. With the year 2017 marking the centenary of Deloitte China, a new campaign themed "Deloitte with B&R" will be launched to shed more light on the Initiative. We will invite senior partners experienced in B&R initiative practice from different functions to share first-hand information, insights, solutions and business cases through short videos, recordings etc. for referencing purposes.

We have invited Norman Sze, Belt and Road Initiative Service Leader of Deloitte China, to share his insights into the upcoming development of the B&R Initiative and some key points when investing in B&R projects.

Insights into the upcoming development of the B&R Initiative

A new wave of globalization under the B&R Initiative will drive the development of industry ecosystem

As many countries along the B&R route remain relatively underdeveloped in transportation, communications, energy, and other aspects of infrastructure construction, the first step for B&R construction is to help these countries improve their situation. Cross-border trade, industrial parks, Internet, tourism, and other industries will also see new opportunities in the foreseeable future. Under the cooperation model proposed by the B&R Initiative, globalization is no longer only about the relocation of production bases from high-cost to low-cost areas. Enterprises should align themselves with the development strategy of the region they invest in and create synergies between upstream and downstream enterprises by transferring a major portion of their procurement, production, and sales to the region, so as to build an ecosystem throughout the industry chain and bring concrete economic benefits and job opportunities to local communities.

4 Key Points when investing in B&R

In implementing B&R projects, enterprises should focus on long-term strategy, financing capability, risk control and international talent development

In the course of developing and implementing B&R projects, enterprises should executive strategic planning in light of their corporate needs. They must take mind not to blindly follow trends or make impulsive investments, and instead insist on the relation between overall strategy and industry ecosystem. Under the pretext of an accurate project valuation, enterprises should innovate new financing approaches, as well as proactively make use of the support that government and financial institutions give to B&R to establish more diverse financing channels. More importantly, enterprises should give due emphasis on risk factors by proactively identifying and managing risks, and, at the same time, efforts should be made to attract international talents through improved talent incentive and restraint mechanism.

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