On the eve of the third Belt and Road Forum for International Cooperation, EY Greater China released Navigator series Special Edition for the 10th anniversary of Belt and Road initiative (BRI): Progress and outlook for jointly building the Green Silk Road and Progress and outlook for jointly building the Digital Silk Road in Beijing on Oct. 10.

 

These reports summarized the progress, achievements and trends in jointly building the Belt and Road in green and digital fields since 2013. They also showcased cases and experiences of some Chinese enterprises participating in the Belt and Road construction, offering valuable insights to encourage more Chinese and multinational companies to participate in the high-quality development of BRI.

 

 

 

The report, Progress and outlook for jointly building the Green Silk Road, covered five major areas: green energy, green construction, green transportation, green consumption and green finance. It repeatedly cited China-Pakistan cooperation projects as typical cases of joint building of green Silk Road.

 

In terms of green energy, the report cited Suki Kinari (SK) Hydropower Project, one of the biggest private-sector hydropower developments in Pakistan, as a case study. SK Hydropower, one of the key projects listed in the first batch of priority projects under China-Pakistan Economic Corridor (CPEC), is currently the largest hydropower project among overseas green field investments made by Chinese companies. It was invested and constructed by China Gezhouba Group Corporation. Once put into operation, the project is expected to generate 3.2 billion kilowatt-hours of electricity annually, helping Pakistan optimize its energy mix, effectively alleviating energy shortages, and to some extent, solving flood control problems in the main stream and agricultural water shortages.

 

 

With regard to green/sustainable research and development cooperation, the report listed active cooperation cases between China and Pakistan in areas such as low-carbon agriculture, smart agriculture, and biotechnology, jointly promoting sustainable agricultural development. In January 2021, China and Pakistan jointly launched China-Pakistan agricultural & industrial information platform, aiming to record and showcase the progress of the two countries in agricultural and industrial cooperation, in order to further strengthen bilateral relations.

 

 

Since BRI was put forward in 2013, the concept of green, low-carbon and sustainable development has gradually deepened, and joint building of green Silk Road has become a key topic of high-quality development of BRI. Pakistani government has proposed the goal of achieving net zero emissions by 2050. The report showed that cooperation between China and Pakistan in the field of green transportation has also played a leading role. For example, Master Motor established a joint venture with China-based Changan Automobile in 2018; Pakistan JW Forland held the inauguration ceremony of the first phase of the industrial park project in 2019; GWM Pakistan KD Plant was officially put into operation in 2022. These projects help Pakistan refine its new energy vehicle system, improve environmental quality, and achieve net zero emissions target as soon as possible.

 

"In the future, during the promotion of green Silk Road, we should stress not only carbon emissions control and green development, but also balanced economic benefits to drive the economic development of the host country. On the one hand, Chinese enterprises can actively expand overseas and find industrial opportunities brought by the export of low-carbon and green technologies; on the other hand, China also needs to enhance alignment of green standards with Belt and Road partner countries and drive the establishment of an innovative Belt and Road green standard system," said Alex Zhu, Energy, Infrastructure Advisory and Carbon Neutrality Leader of EY Greater China.

 

Currently, global digital economy is entering the fast lane of development. At the corporate level, industries such as energy, transportation, consumer goods, and entertainment are all facing transformation. Digitalization, as one of the main channels for innovation, not only injects sustainable growth impetus for enterprises to cope with business complexity, but also creates new development opportunities for new globalization.

 

The report, Progress and outlook for jointly building the Digital Silk Road, summarized developments and trends in five major areas - digital infrastructure, digital supply chains, smart manufacturing and intelligent engineering, smart cities, cross-border e-commerce and digital entertainment products, to help enterprises better understand progress and development trends of digital Silk Road.

 

"The development of digital Silk Road plays a pivotal role in advancing BRI. It effectively harnesses China's market and technological advantages, fostering high-tech cooperation between China and Belt and Road partner countries. It also accelerates the upgrading of host countries' traditional infrastructure, enhances their digital capabilities, narrows the digital disparity between developing and developed nations. All these, in turn, provides essential support for the deepening of regional economic and trade development. Looking ahead, as a pivotal force driving global digital economic growth, China will continue to expand and deepen international cooperation, advancing the high-quality development of digital Silk Road," said Roy Shao, Partner of Technology, Media, and Telecommunications (TMT) Consulting Services at EY Greater China.

 

"Developing countries with relatively weak economic foundation need more external support to achieve recovery and transformation. BRI, as a new platform for global cooperation, provides development opportunities for Belt and Road partner countries. Over the past decade, the projects involving Chinese enterprises has covered more areas. Green and digital economy has turned into a crucial part of Chinese enterprises' participation in international cooperation and competition, and the implementation of "dual circulation" development pattern. It also provides an opportunity for China to join hands with Belt and Road partner countries to promote re-globalization," said Loletta Chow, Global Leader of EY China Overseas Investment Network.