China Belt and Road Initiative (BRI) Investment Report 2022

2023-07-18 15:08:00 · CHRISTOPH NEDOPIL WANG

BRI finance and investments is steady in 2022 at USD67.8 billion, compared to USD68.7 billion in 2021

The new BRI investment report covers the period until December 2022. Download the full report here

Key findings

BRI finance and investments is steady in 2022 at USD67.8 billion, compared to USD68.7 billion in 2021;
Investments as a share of BRI engagement reached record levels at 48%, up from 29% in 2021 and compared to an average of 40%;
Since 2013, cumulative BRI engagement amounts to USD962 billion, about USD573 billion in construction contracts, and USD389 billion in non-financial investments;
New coal-related projects were announced in 2022, including a captive coal fired power plant and coal mining in Indonesia;
Energy-related engagement at lowest levels at USD24.1 billion – compared to strong technology manufacturing engagement, e.g., a USD 7.6 billion investment in a Gigafactory
Fossil fuels constituted about 63% of Chinese BRI overseas energy engagement particularly in gas pipelines, possibly undermining global climate goals;
Green energy engagement (solar, wind, hydro) in 2022 increased 50%: investments by USD0.1 billion to USD2.7 billion; construction projects by USD1.9 billion to USD5.3 billion;
14 countries saw a 100% drop in BRI engagement, including Angola, Nepal, Peru, Russia, and Sri Lanka;
Engagements with Sub-Saharan Africa and West Asia dropped to lowest levels, while Arab and Middle Eastern countries could expand their share of Chinese engagement;
Major beneficiary countries of Chinese investments were Hungary (USD7.6 billion), Saudi Arabia, and Singapore. The Philippines and Argentina were main beneficiaries of Chinese construction engagement;
Average deal size for construction projects was the smallest since 2013, dropping from USD496 million in 2021 to USD330 million in 2022; average deal size for investment projects increased, driven by few large transactions, such as battery producer CATL's USD7.6 billion investment in Hungary;
BRI investments in 2022 were unusually dominated by private sector enterprises, including CATL and Alibaba, whileconstruction contracts were dominated by state-owned enterprises (SOEs);
In 2022, global FDI into emerging economies developed similar to China's BRI engagement – with a mixed bag of growth and decline;
For the 2023, further rebound of Chinese BRI engagement is possible with a removal of COVID-related travel restrictions particularly relevant for Chinese developers;
Potential future engagements can be expected in five project types: manufacturing in new technologies (e.g., batteries), trade-enabling infrastructure (including pipelines, roads), ICT (e.g., data centers), resource-backed deals (e.g., mining, oil, gas), high visibility or strategic projects (e.g., railway).

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China Belt and Road Initiative (BRI) Investment Report 2022

UDF-Space · CHRISTOPH NEDOPIL WANG

1Years Ago

Key findings

BRI finance and investments is steady in 2022 at USD67.8 billion, compared to USD68.7 billion in 2021;

Investments as a share of BRI engagement reached record levels at 48%, up from 29% in 2021 and compared to an average of 40%;

Since 2013, cumulative BRI engagement amounts to USD962 billion, about USD573 billion in construction contracts, and USD389 billion in non-financial investments;

New coal-related projects were announced in 2022, including a captive coal fired power plant and coal mining in Indonesia;

Energy-related engagement at lowest levels at USD24.1 billion – compared to strong technology manufacturing engagement, e.g., a USD 7.6 billion investment in a Gigafactory

Fossil fuels constituted about 63% of Chinese BRI overseas energy engagement particularly in gas pipelines, possibly undermining global climate goals;

Green energy engagement (solar, wind, hydro) in 2022 increased 50%: investments by USD0.1 billion to USD2.7 billion; construction projects by USD1.9 billion to USD5.3 billion;

14 countries saw a 100% drop in BRI engagement, including Angola, Nepal, Peru, Russia, and Sri Lanka;

Engagements with Sub-Saharan Africa and West Asia dropped to lowest levels, while Arab and Middle Eastern countries could expand their share of Chinese engagement;

Major beneficiary countries of Chinese investments were Hungary (USD7.6 billion), Saudi Arabia, and Singapore. The Philippines and Argentina were main beneficiaries of Chinese construction engagement;

Average deal size for construction projects was the smallest since 2013, dropping from USD496 million in 2021 to USD330 million in 2022; average deal size for investment projects increased, driven by few large transactions, such as battery producer CATL's USD7.6 billion investment in Hungary;

BRI investments in 2022 were unusually dominated by private sector enterprises, including CATL and Alibaba, whileconstruction contracts were dominated by state-owned enterprises (SOEs);

In 2022, global FDI into emerging economies developed similar to China's BRI engagement – with a mixed bag of growth and decline;

For the 2023, further rebound of Chinese BRI engagement is possible with a removal of COVID-related travel restrictions particularly relevant for Chinese developers;

Potential future engagements can be expected in five project types: manufacturing in new technologies (e.g., batteries), trade-enabling infrastructure (including pipelines, roads), ICT (e.g., data centers), resource-backed deals (e.g., mining, oil, gas), high visibility or strategic projects (e.g., railway).