Chinese Firms Wary of Political Risks on Xi's Belt and Road
- Plan deepens companies’ exposure in unstable countries
- Companies ‘still lack the ability to discern where to invest’
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As the global limelight fades from President Xi Jinping’s “Belt and Road” summit, the main actors -- Chinese state-owned companies -- are warning about the political risks they face along the route.
Earlier this month Xi outlined plans to direct as much as 840 billion yuan ($122 billion) to build roads, railways, ports and pipelines across Asia and beyond, securing China’s central role in world trade. The plan has the country’s state-owned enterprises weighing investments in 65 participant nations, almost two-thirds of which have sovereign debt ratings below investment grade.