Is China’s BRI a gigantic venture capital scheme?

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August 8, 2018

Ratings agency Standard & Poor’s looks at the defence, energy and economic security drivers behind China’s grand plan for a new Silk Road . . .

CHINA’s Belt and Road Initiative (BRI) is a gigantic venture capital project, according to a briefing note by the Standard & Poor’s China Senior Analysis Group.
It says an undertaking of the magnitude of BRI has potentially large payoffs as well as large risks.
Success will rest on whether China’s seed money in the BRI will create creditworthy projects that attract true private-sector outside money. “Seen this way, the BRI is arguably the world’s largest attempted venture capital project,” the note says.
“The geopolitical factor is that China has decided it wants to have greater control than Japan in shaping both its economic and security environment in this region.”
Unlike the United States, which shares borders with two countries, China borders no fewer than 17 countries.
“Of particular interest to China are the western borders, which abut Central Asia that was once part of the former Soviet Union.
“These nations tend to be less political and economically stable than China. As such, they are seen as potential sources of risk, particularly in Xinjing province in China’s northwest.”
 The note says that engaging these countries economically and connecting them to Western China through the BRI serves several purposes.