China continues its global expansion through the Belt and Road Initiative (BRI), which has grown beyond a purely economic project. In 2025, Chinese companies set a record for contracts for investment and construction in Africa, South Asia, and Latin America. Projects include new railways, ports, energy systems, and roads, aiming to elevate the global economic role of these regions.
Meanwhile, the US continues to introduce high tariffs and trade barriers targeting China and its partners. For many countries in the global South, China provides critical financing for large-scale infrastructure projects. Often, Chinese firms act as contractors, which brings much of the invested capital back to China through construction and engineering payments.
In the first half of 2025, Chinese contracts totaled $124 billion—more than in all of the prior year. Investments cover classic sectors like transport and energy as well as digital infrastructure and green projects. China is increasingly moving from loan-based deals to direct foreign investments, reducing the risk of debt crises for its partners.
Energy, logistics, and green sectors remain key focuses. Africa and Central Asia top the list in 2025: for instance, China invested $23 billion in Kazakhstan and $20 billion modernizing Nigerian plants. Recently, China has shifted some manufacturing to Southeast Asia to avoid US sanctions.
Since its launch, the Belt and Road Initiative’s combined project and investment volume has surpassed $1.3 trillion and involved over 150 countries. This shift highlights the growing role of tangible assets and resources in global economics. China is increasing its role in logistics, energy, and transportation, reshaping the global economic landscape.
