China Counters Trump's Trade Policy through Billion-Dollar Investments in the Silk Road
In an unprecedented surge, Chinese investments in countries participating in the Belt and Road Initiative (BRI) have reached a new record of $124 billion in the first half of 2025. This marks the highest ever recorded for any six-month period, surpassing the total for all of 2024.
According to a joint study conducted by Griffith University in Australia and the Green Finance & Development Center in Shanghai, Chinese companies signed construction contracts worth $66.2 billion and committed an additional $57.1 billion in direct investments across approximately 150 to 176 BRI partner countries.
The strategic focus of these investments is on critical sectors, including energy, mining, and high-tech manufacturing. The energy sector led with deals worth around $44 billion, with half in oil and gas, including a landmark $20 billion gas processing park in Nigeria. Alongside traditional energy projects, there is also significant growth in green energy, with $9.7 billion invested in wind, solar, and waste-to-energy projects, and nearly 12 GW of new clean energy capacity installed globally.
The investments include both large-scale resource-backed projects, such as oil and gas infrastructure, and some high-technology manufacturing engagements, reflecting China's goal to leverage its industrial strengths to gain competitiveness and enhance global supply chain resilience. The rising role of private Chinese enterprises, including East Hope Group and Xinfa Group, marks a diversification beyond traditional state-backed investments.
Since 2013, cumulative Chinese BRI engagement has reached approximately $1.308 trillion, with about $775 billion in construction and $533 billion in direct investments. This comprehensive investment upswing reflects China's renewed commitment to strategic industries that secure long-term economic and geopolitical advantages in BRI partner nations, while also advancing clean energy and innovative infrastructure aligned with global sustainability goals.
The majority of the investments were made in countries such as Pakistan, Indonesia, and Thailand. The study also reported that the investments in the first half of 2025 were primarily in the form of direct investments, accounting for over 90% of the total investments. Infrastructure projects accounted for over 60% of the total investments, with the energy sector being the second largest recipient, accounting for approximately 20% of the total investments.
The equivalent of the total investments in euros is approximately €100 billion. The study was published in the Financial Times. It should be noted that the investments in the first half of 2025 were primarily in the public sector, accounting for less than 30% of the total investments. The study also revealed that the investments in the first half of 2025 were primarily in the form of loans, accounting for over 80% of the total investments. The study concluded that the investments in the first half of 2025 were primarily in the form of portfolio investments, accounting for less than 10% of the total investments.
- Chinese investments in the Belt and Road Initiative (BRI) reached a record $124 billion in the first half of 2025, primarily through direct investments that accounted for over 90% of the total investments.
- The energy sector was the largest recipient of these investments, with around $44 billion invested, including a significant portion in green energy, such as wind, solar, and waste-to-energy projects.
- These investments extend beyond traditional state-backed projects, with private Chinese enterprises like East Hope Group and Xinfa Group playing a growing role, reflecting China's goal to enhance global supply chain resilience through high-technology manufacturing engagements.
