What is the Belt and Road Initiative?
Our President of Global High Growth Regions talks about how this initiative is a highly ambitious program to shake up the global economic order
September 7, 2017
Welcome to the new Silk Road.
More than seven centuries since the arrival of Marco Polo, leaders around the world are eager to be part of China's Belt and Road Initiative (BRI), formerly One Belt One Road.
BRI is a colossal China-led project that aims to become an interconnected network of ports, roads, railways, air routes and even resource pipelines, ultimately connecting Asia with Europe and East Africa. Thanks to existing global supply chain networks, the knock-on effect has the potential to impact economic corridors worldwide.
First put forth by Chinese President Xi Jinping in 2013, as of now, BRI will span 65 countries, and China has so far invested over $900 billion in projects.
Here is what Shane Tedjarati, President of Honeywell Global High Growth Regions, thinks.
Is Belt and Road a real growth opportunity for Honeywell? Why?
The Belt and Road initiative (BRI) can bring huge opportunities to Honeywell. We offer a wide range of China-made, world-class solutions, including building and process controls, personal protection equipment, and safety and security products that are helping to resolve some of the most critical issues being faced as the construction of the BRI continues.
How big an opportunity is BRI for US firms?
The initiative promises to raise the level of connectivity, cooperation and trade between dozens of nations that have traded with China for thousands of years. Multi-national companies like Honeywell can bring a set of technology solutions to Chinese Engineering Procurement Construction (EPC) companies throughout the value chain.
In May 2017, Honeywell signed a partnership agreement with Wison Engineering Ltd., one of the leading chemical EPC service providers in China, to jointly provide methanol-to-olefin (MTO) technologies and engineering, procurement and construction services for customers outside of China, particularly in countries and regions included in China's Belt and Road Initiative.
Can you explain how Honeywell's strategies relate?
We identify China-specific needs and meet them with locally-developed innovations. Currently, about 40% of our revenues in China come from related innovations and products.
Then we transfer China developed innovations to the rest of the world, especially high growth markets, where they can be further tailored to meet the needs of various markets served by Honeywell.
Through these efforts, we closely align with the Belt and Road Initiative and proactively advocate locally developed innovations and partnering with leading Chinese companies to “go out,” especially in international infrastructure development and energy projects.
Do you expect oil and gas development to be greatly expanded under the program?
Honeywell will continue to work its partners to support oil and gas development along the Belt and Road.
For example, we are selected by Asia Trans Gas to provide automation and safety technology designed to help them manage their operations and establish safer working conditions along the third pipeline of the Central Asia-China Gas Pipeline project. The pipeline became operational in 2015. The same Honeywell technology is in use in the first two pipelines of the project, which are already in operation. Asia Trans Gas is a joint venture of China National Petroleum Corp. (CNPC) and Uzbekistan national holding company UzbekNefteGas.