There is a gap between the great vision and high-quality targets of the Belt and Road Initiative (BRI) and Western recognition of them, which challenges Chinese and Western scholars. This gap should be narrowed by conducting in-depth case studies and comparative studies at the project level. In recent years, the international academic community has paid increasing attention to Chinese outward foreign direct investment (FDI), but Belt and Road construction is much broader in scope, comprising not only FDI projects but also China-financed projects and emerging mixed projects. Our investigation, observation, and examination of the BRI projects find that compared to their Western counterparts, Chinese enterprises have less experience in doing business in other countries and often pay less attention to institutional and cultural differences between China and the host countries. Thus, revisiting the institutional and cultural turn in economic geography and employing its ideas to analyze the BRI projects and summarize their construction modes may contribute to the development of both economic geography and the BRI. This paper first briefly reviews the background and research trends of the institutional and cultural turn and then summarizes three major modes of Belt and Road construction, namely, EPC (Engineering Procurement Construction)-based projects, concession-based projects, and FDI; finally, it draws on the institutional and cultural turn to classify the BRI projects according to the two indicators of “Breadth and Depth of Territorial Embeddedness” and “Destructive Effect of a Project and/or Technology” into four types: transformative, supportive, ordinary projects and overseas industrial cooperation parks. Different institutional and cultural sensitivity can be observed for each type of project. The preliminary theorization proposed in this paper may offer a potential framework for further research on the BRI.
Global production networks have become the most important organizational platforms for coordinating international production activities, and their evolution patterns profoundly affect value distribution across the world. In this study, we shall firstly carry out an in-depth quantitative research to analyze the patterns and evolution of global production networks, using a long time-sequenced multi-region input-output table and the network analysis approach. Then based on the method of value-added decomposition, we will develop an index system to measure the degree of participation of regions in global production networks. Finally, we will try to identify the factors affecting the degree of participation of countries in global production networks by constructing a regression model. The results show that from 1995 to 2015, the evolution of global production networks measured by input-output linkages experienced four stages: expansion, contraction, re-expansion, and re-contraction. In addition, the core communities of global production networks evolved from two major production communities (Europe and the Americas) to three pillars (Europe, Americas, and Asia) while more segmented communities are mainly affected by geographical proximity. The latter consists of European, North American, South American, African and Asian communities. The evolution of the global production network pattern primarily manifests as a process of cooperation strengthening or weakening among communities, based on changes in the external environment and the need for individual development strategies. Meanwhile, the United States, Germany, and the United Kingdom have consistently ranked among the top entities in global production networks, whereas China, Russia, and Southeast Asia have the fastest rises in ranking. In addition, government efficiency, resources endowment, infrastructure conditions and technology levels play important roles in the participation in global production networks.
The development of overseas industrial parks is a key component of the Belt and Road Initiative and a practical way of promoting inclusive globalization by introducing new forms of cooperation between China and the host countries. In this paper, the Thai-Chinese Rayong Industrial Zone (TCRIZ), and the China-Indonesia Economic and Trade Cooperation Zone (KITIC) are discussed in the context of the evolving development strategies and trajectories through three interrelated conceptual lenses - policy mobility, actor networks, and partnerships. The actor-network theory provides a lens to analyze how policy mobility and partnerships develop for two industrial zone case studies. The development, which involves a multi-scalar process, is shaped by the interactions among the national states, the regional governments and corporations against a background of globalization. Three types of transnational actor partnership networks have been identified, namely, hierarchical partnership, spontaneous partnership, and hybrid partnership. A highlight of the study is the role that the partnerships play in the process of policy mobility when it comes to the overseas industrial zones. It is argued that the partnerships are the key to achieving technology transfer on a cross-national basis, and the effectiveness of the technology transfer is dependent on partner selection and the roles of the actors in policy mobility.
Modern railway projects, characterized by “natural monopoly”, large investment, and far-reaching influences, are highly dependent on the institutional and cultural environments in China. The countries along the Belt and Road are characterized by weak institutions, unstable politics, and poor technology foundations, which are largely different from China. These factors are severe obstacles to international technology transfer. By summarizing the experiences from the Mombasa-Nairobi Standard-Gauge Railway (SGR) project, this study proposes a framework for embedded technology transfer with a technology-institution-culture nexus. The results indicate that technology localization, including technology standards, management mode, and industrial chain, should be realized in the process of technology transfer. Then, the host government ought to overhaul its institutional and policy framework to support the infrastructure projects. Moreover, the cultural conflicts between the transferor and transferee should be taken seriously. This experience could provide references for other international infrastructure technology transfers.
The implementation of the Belt and Road Initiative and the increasing frequency of the China-Europe Railway Express (CER Express) have brought new improvement to the production system of enterprises along the Belt and Road regions. On the basis of summarizing the evolution of production system of enterprises, this paper takes TCL Poland Plant as an example to conduct an in-depth study on the characteristics of the plant's current production system and its differences from the original production system, and analyzes the impact of the CER Express on its current production system. Some conclusions can be drawn as follows. (1) CER Express had a great impact on the production system of TCL Poland Plant, which is mainly manifested in the following aspects. First, the transport of raw materials by CER Express improves the time efficiency and shortens the whole supply chain. Second, CER Express acts as a “moving inventory”, which realizes the flexibility of raw material inventory and “zero inventory” effect based on the punctual transport. Third, the time and inventory effects brought by CER Express speed up the response to European market. The comprehensive benefits brought by CER Express lead to a more punctual and lean production system, meet the diversified needs of consumers on account of product quality and diversification, and improve ability to expand European market. (2) On the basis of abandoning the original “Rigid Mass Production” system, we argue that TCL Poland Plant formed a unique production system—“Global Fluid Just-in-Time” which absorbed the essence of Toyota Production System based on the punctual transnational transportation of CER Express. (3) The differences between the current and the original production systems of TCL Poland Plant are mainly focused on the following aspects: the difference of transport and storage mode of raw materials, and the changes of production line, production mode and quality inspection organization, etc.
China’s overseas industrial parks contribute to political and economic cooperation, cultural exchange between home and host countries. Current studies mainly discuss the effect of overseas industrial parks from the perspective of institutional and cultural difference, multi-scale coupling, as well as key partnerships, while little attention has been paid to the comprehensive analysis of overseas industrial parks. Based on a theoretical framework, this paper explores the overall effect of China’s overseas industrial parks from the geo-effects perspective by using field interviews and a case study approach. The research shows that: (1) the geo-effects reveal the over effect of overseas industrial parks from the multiple and complementary dimensions of geopolitics, geo-economics, geo-society and geo-culture; (2) the Cambodia Sihanoukville Special Economic Zone, as a flagship BRI project, has produced the prominent and positive geo-effects; (3) the institutional-economic-cultural-environmental adaptability of overseas industrial parks is becoming important. Overseas industrial parks must be rooted in the politics, economy, society, and culture of host country; embedded in local social networks; balance the rights and interests of all stakeholders; and form the community of interests, community of destiny, and community of responsibility with political mutual trust, economic integration, cultural inclusiveness, and social harmony. The paper not only deepens the understanding about the overall effect of overseas industrial parks, but also provides decision support and theoretical reference for government policy makers and the overseas investment of enterprises.
As an innovative mode of China’s foreign direct investment, China’s overseas industrial parks are not only the main content of the Belt and Road Initiative (BRI) but also the practical carrier of policy transfer. However, most of the academic literature on the policy transfer of overseas industrial parks has regarded the host country as a passive learner and seldom considers the two-way interactions between the host country and the home country. Using the Malaysia-China Kuantan Industrial Park (MCKIP) and the “Two Countries, Twin Parks” model as case studies, we discuss the applicability and innovative development of the policy transfer theory of China’s overseas industrial parks under the background of BRI. This article systematically analyzes the developmental background of the MCKIP and the cooperative framework between the governments. We consider the problems encountered in the policy transfer process and the solutions, as well as the two-way interactions between China and Malaysia in terms of the flow of people, logistics, capital, information, and technology. The study sheds light on the construction of the “Two Countries, Twin Parks” overseas industrial park.
This article contributes to a small but growing body of multi-sited and multi-scalar research on the Belt and Road Initiative. We focus on relations at the national, regional and international scales, and present original research from China and Turkey, to show how the Istanbul-Ankara high-speed railway has served as a testing ground for China’s Belt and Road Initiative (BRI). Its construction was initially funded by the European Investment Bank, but it is now part of the backbone of the Turkish Government’s Middle Corridor plan which enhances west-east connectivity and integration with the Caucasus and Central Asia. We show that in contrast to multinational corporations from the OECD that seek to remain footloose, Chinese state-owned enterprises (SOEs) seek to adapt to, apprehend and ultimately shape local institutions. In the case of Turkey this proved difficult given its institutional alignment with the European Union. Thus, while the railway project was completed successfully by a consortium led by a Chinese SOE, Turkey’s dynamic and complex regulatory environment discourages Chinese SOEs in the infrastructure sector. We conclude that the Turkish and Chinese governments are currently pursuing complementary territorial visions yet their cooperation is project-based and pragmatic.
