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1、ForeigninvestmentThenewSilkRoadChina’slatestwaveofglobaliserswillenrichtheircountry—andtheworldSep12th2015
2、 Fromtheprintedition·ANENORMOUSMAPofthehistoricSilkRoadhangsonawallatWensli,aleadingChinesesilkproducer.NearbyexhibitsputChina’ssilkmakingtraditionintocontext.TheChinesefirstencounteredsilkwo
3、rmsabout6,000yearsago.Twomillennialatertheybuiltthefirstsilkmachine.WhenFranceemergedasEurope’ssilkcentreinthe16thcentury,itlearnedtechniquesfromChina,thentheworld’smostadvancedeconomy.TheChineseloveinvokingtheircountry’srichandgloriouspast,sotheylappedupPresidentXiJinping’s“OneBelt,OneRoad”plan,an
4、nouncedinlate2013,whichaimstorestorethecountry’soldmaritimeandoverlandtraderoutes.MrXihopestoliftthevalueoftradewithmorethan40countriesto$2.5trillionwithinadecade,spendingnearly$1trillionofgovernmentmoney.SOEsandstatefinancialinstitutionsarebeingpushedtoinvestoverseasinsuchareasasinfrastructureandc
5、onstruction.AccordingtotheEIU,plannersseethisasanoutletforthevastovercapacityinindustriessuchassteelandheavyequipment.Itseemslikelytoleadtoamassivespendingbinge,butcompaniesshouldremainwary.Governmentsupportwillnotnecessarilyensuresuccess.LiJianhua,Wensli’schiefexecutive,isquicktopraisethepresident
6、’sinitiative.Hetweetsasilk-themedmessageonWeChateverydayinsupportofOneBelt,OneRoad.Wensli,aprivateconglomeratewithrevenuesapproaching$1billion,haslongbeenclosetotheCommunistParty.ShenAiqin,Wensli’sfounder(andMrLi’smother-in-law),servedasadeputytotheNationalPeople’sCongress.ButMrLiisnotapartymembera
7、ndinsiststhat“nothinginouroperationshastodowiththegovernment.”Agoodrelationshipwithofficialshelps,heexplains,ifonlysohecanrefusewhentheypresshimtoinvestin“strategic”industries:“Thishappensalot…butIsayno,weareasilkfirm.”WensliisrevivingtheSino-Frenchsilkconnection,butonitsowninitiative.Twoyearsagoth
8、ecompanyacquiredMarcRozier,anold-establishedFrenchsilkfirm.MrLisaysheboughtittofindouthowtheFrenchmaketheworld’sbestluxurygoods.Wensli’ssupply-chainexpertiseandcasharehelpingMarcRozierexpand.Inturn,theFrenc