Under the circumstances of slowing global economic development and small growth of international trade, the "the Belt and Road" initiative has opened up new ideas for breaking through the dilemma of international trade cooperation and promoting regional economic development. The core of the Silk Road Economic Belt initiative is regional economic cooperation and development, advocating for the active development of economic partnerships with countries along the route, including connecting Southeast Asia, Northeast Asia, Central Asia, West Asia, and Europe. It can be seen that the Eurasian region is the core area of the initiative. In combination with the development trend of global economic development and international trade cooperation, this report selects trade (including two small indicators of import and export trade and trade structure), investment and local cooperation as indicators to analyze the cooperation, development and trend of the "the Belt and Road" Eurasian region in 2017, and selects 26 countries that have a significant impact on the cooperation and development of the "the Belt and Road" Eurasian region from the countries participating in the "the Belt and Road" construction, the countries participating in the "the Belt and Road" International Cooperation Summit Forum in 2017, the member countries of the Asian Investment Bank and countries conducting production capacity cooperation with China as indicator countries (hereinafter referred to as "Eurasian 26 countries", see Table 1).

The reasons why Japan and South Korea are included in the indicator countries are as follows: First, Japan and South Korea are the largest trading partners in Northeast Asia. Since 2002, China, Japan and South Korea have started negotiations on a free trade area. The eleventh round of negotiations will be launched in 2017. If the free trade area is established, it will have a greater impact on the cooperation and development of the "the Belt and Road" Northeast Asia region and even the entire Eurasia region; Second, Japan and the ROK have respectively welcomed or supported the "the Belt and Road" initiative or related cooperation. The delegation led by Junbo Nikai, the Secretary General of the Liberal Democratic Party of Japan, and the delegation led by Park Byung suk, a member of the Korean Common Democratic Party, participated in the the Belt and Road International Cooperation Summit Forum on behalf of their respective governments. In 2017, Japan also expressed its desire to participate in the Asian Infrastructure Investment Bank. Perhaps "Made with Japan" cooperation between China and Japan will become a new model of cooperation in the Eurasian region. Some countries, such as Myanmar and Greece, account for a small proportion in China's economic and trade cooperation. The reason why they are included in the indicator countries is that they have carried out major projects under the "the Belt and Road" initiative, which has a significant impact on countries and regions. For example, the China Myanmar oil and gas pipeline not only benefits Myanmar, but also promotes the development of surrounding underdeveloped countries and regions, thereby advancing the construction of an Asian community with a shared future and a community with a shared future for mankind. Similarly, the construction of node ports is also an important project for the connectivity of the "the Belt and Road". China's participation in the construction of Piraeus Port, the largest port in Greece, will play a role in achieving connectivity between Europe and Asia. Some countries with large trade volume with China, such as India, have not been included in the indicator countries. First, there are many uncertainties in China India relations. Second, the country has not expressed support for the "the Belt and Road" initiative. It is difficult to judge its future role in Eurasian cooperation and development under the "the Belt and Road" initiative.

表1 欧亚26个指标国

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Table 1: 26 Indicator Countries in Eurasia

Stable development of trade

In the current context of slow global economic recovery, the development of regional cooperation is clearly an important driving force for promoting global economic development, which has become a consensus. The Eurasian region is the focus area covered by the "the Belt and Road" initiative. In 2017, the Eurasian regional economy and trade developed steadily.

（1） In 2017, the total import and export volume of trade between China and 26 Eurasian countries remained stable and slightly increased

The trend of the total trade volume of indicator countries shows that China's trade volume with Northeast Asia, Southeast Asia, Western Europe, Eastern Europe, and Central Asia has increased to varying degrees. Among them, the total import and export volume between China and Central Asia increased the most, reaching 69.5%, but the total volume was low. In Northeast Asia, the main feature is still the increase in total trade volume between China, Japan, and South Korea. In Southeast Asia, the total trade volume between China and Vietnam has grown relatively significantly, followed by Malaysia. In Western Europe, apart from China's traditional trading partners such as Germany, both the UK and France have experienced varying degrees of growth. In Eastern Europe, Poland has shown the most significant growth, while the total trade volume between Russia and China is the largest and has been continuously increasing. Compared to other regions, except for Russia, the total trade volume in Eastern Europe and Central Asia has grown rapidly, but the overall level is still relatively low, with the lowest trade volume with Central Asia.

From the development trend of trade volume, import and export volume (see Figure 1), it can be seen that Northeast Asia and Western Europe are still the main regions for China to carry out trade cooperation in the Eurasian region. With the deepening of the "the Belt and Road" initiative, the trade cooperation between Southeast Asia and China has developed rapidly, with a growth rate of more than 25%. It has become an important area for China to carry out trade cooperation in Asia.

Figure 1 Comparison of Import and Export Total Trends between China and 26 Countries in 2016 and 2017

（2） In 2017, China's exports and imports to 26 countries saw a slight increase

Compared to 2016, China's exports and imports to 26 countries slightly increased in 2017 (see Figures 2 and 3). In Northeast Asia, China's total exports to Japan and South Korea have slightly increased, and imports have also increased slightly. In 2017, the bilateral import and export volume of goods between Japan and China was 297.28 billion US dollars, an increase of 9.9%. Among them, Japan's exports to China amounted to 132.86 billion US dollars, an increase of 16.7%, accounting for 19.0% of Japan's total exports, an increase of 1.3 percentage points; Japan imported 164.42 billion US dollars from China, an increase of 5.0%, accounting for 24.5% of Japan's total imports, a decrease of 1.3 percentage points. Japan's trade deficit with China was 31.56 billion US dollars, a decrease of 26.1%. As of December 2017, China is Japan's second largest export trading partner and first largest import trading partner.

With the deepening of the "the Belt and Road" initiative, the trade cooperation between Southeast Asia and China has developed rapidly and has become an important area for China to carry out trade cooperation in Asia. In 2017, apart from the stable development of trade between countries such as Singapore and Thailand and China, China's exports to Indonesia grew the most, followed by Vietnam, while imports were more significant in Vietnam. Indeed, the steady growth of China Vietnam trade cooperation is inseparable from the docking of the "the Belt and Road" initiative and Vietnam's "two corridors and one circle" development strategy.

The total import and export value in Central Asia is not high, but the growth rate is significant. Taking Kazakhstan as an example, the import and export growth rates in 2017 compared to 2016 were 40.4% and 32.3%, respectively. The China Central Asia natural gas pipeline, known as the "New Era Energy Silk Road," has played an important role in China Kazakhstan trade, with crude oil exports accounting for over 50% of Kazakhstan's total exports to China. As of March 29, 2017, Kazakhstan has transported a total of 100 million tons of oil to China. Currently, China is Kazakhstan's second largest export market and the largest source of imports; Kazakhstan is China's largest trading partner in Central Asia and also the largest target country for China's outward investment in the Eurasian region.

Figure 2 Comparison of Import Trends from 26 Countries in China in 2016 and 2017

Figure 3 Comparison of China's export trends to 26 countries in 2016 and 2017

In Central and Eastern Europe, Russia continues to lead exports to China. Secondly, the trade growth between China and Poland is also remarkable. Poland is an important strategic pivot in the Eurasian region along the Silk Road Economic Belt. With the development of connectivity, Chinese goods are expected to be transported to 30 European countries through Poland. In recent years, the Czech Republic has become China's second largest trading partner in Central and Eastern Europe after Poland. In 2017, Czech Republic exported 3.7 billion US dollars to China, an increase of 25.2%; The Czech Republic imported $8.8 billion from China, an increase of 9.3%.

In Central and Western Europe, imports and exports from Germany, France, and other countries have maintained steady growth, with China's imports from Switzerland slightly decreasing and imports from the UK showing a significant increase. According to data from the Ministry of Commerce, China exported $56.72 billion to the UK in 2017, a year-on-year increase of 1.8%; Imports from the UK amounted to 22.31 billion US dollars, a year-on-year increase of 19.4%. The UK is the first Western European country to apply to join the AIIB, and has been actively treating the "the Belt and Road" initiative. The withdrawal from Europe gives Britain more impetus to further strengthen cooperation with the world. Theresa May put forward the slogan of "Globalizing Britain" to maintain Britain's international influence. The "the Belt and Road" initiative brings new opportunities for Britain to reintegrate into the world economy. Although during her visit to China in January 2018, British Prime Minister Theresa May did not sign a memorandum of understanding with China on the "the Belt and Road", she said that she "welcomed the opportunities brought by the" the Belt and Road ", including the opportunities for the City of London, and recognized that the" the Belt and Road "initiative" may be of great significance to investment and bring opportunities to enterprises outside China ".

In Southern Europe, China's exports to Spain have steadily developed, while imports to Spain have slightly increased. Spain is China's sixth largest trading partner within the European Union, while China is Spain's sixth largest trading partner globally and its largest trading partner outside the European Union. As of the end of 2017, China imported 22.92 billion US dollars from Spain, an increase of 30.8% compared to 2016, and exported 8.02 billion US dollars, an increase of 7.5%. In 2016, the "13th Five Year" National Informatization Plan proposed that by 2020, China will form a major channel for multilateral economic and trade cooperation based on cross-border e-commerce and digital trade with countries along the "the Belt and Road". Cross border e-commerce is rapidly developing in trade between China and Spain. Spain, as one of China's key bilateral trade countries on the "the Belt and Road" European Extension Line, is the third largest destination country in China's e-commerce export volume, second only to Russia and the United States. From the perspective of cross-border import e-commerce platform Tmall Global, Spain has become one of the top ten importing countries in China; From the perspective of global AliExpress, Spain is the third largest country market for Alibaba's cross-border export B2C platform AliExpress in the global market. At the same time, Spanish companies have also entered China through e-commerce platforms. Taking Tmall as an example, 53 Spanish brands have settled in, covering fields such as clothing, cosmetics, and red wine.

II. Optimization of Trade Structure

In 2017, China optimized the import and export trade structure of 26 countries. Although light industrial products were still the main focus, the proportion of high-tech goods such as mechanical and electrical equipment increased (see Figure 4).

Figure 4 Distribution of commodity structure of China's imports (top) and exports (bottom) to 26 countries

In the Eurasian region, in terms of export products in 2017, the export value of electromechanical equipment was the highest, accounting for about 39% of China's exports to 26 countries, an increase of 2% compared to 2016; Next is textile products, accounting for about 13% of China's exports to 26 countries, a decrease of 1% from 2016. According to Chapter 22 of the General Administration of Customs of China's 2017 Classification of Import and Export Commodities, the value of goods is mainly distributed around 500 billion yuan. Export products exceeding 500 billion yuan are mechanical and electrical equipment and textiles, while imports of chemical products are slightly higher than 500 billion yuan, except for mechanical and electrical equipment and textiles.

China's imports and exports to Southeast Asian indicator countries are mainly focused on mechanical and electrical equipment (see Figure 5). In 2017, mineral products had the fastest growth rate of 63% among imported products, followed by mechanical and electrical equipment with a growth rate of 17.6%; The total export value of mechanical and electrical equipment is also the highest, with the largest increase, followed by base metals and products. It can be seen that under the "the Belt and Road" initiative, China led infrastructure construction has stimulated the import and export of the above products. The increase in imports of mineral fuels and products also highlights the potential role played by the opening of the China Myanmar natural gas pipeline. The starting point of the China Myanmar natural gas pipeline is Kyaukpyu, Myanmar. It flows from Ruili, Yunnan to China and finally reaches Guigang, Guangxi. The annual designed gas transmission capacity is 12 billion cubic meters. At present, the cumulative gas transmission capacity has just reached 4 billion cubic meters, which is only one-third of the designed annual gas transmission capacity. In addition to insufficient gas supply and unstable production in Myanmar, as well as supply instability caused by conflicts in northern Myanmar, high natural gas prices, lagging construction of distribution pipelines, and conflicts of interest between state-owned and local companies are also important reasons for the insufficient supply. However, with the deepening of the "the Belt and Road" initiative, the China Myanmar natural gas pipeline should play a greater role.

Figure 5 Comparison of commodity structure of imports and exports from China to indicator countries in Southeast Asia in 2016 and 2017 (top figure) and (bottom figure)

In China's trade with Pakistan in South Asia, the total import value of textiles was the highest in 2017, followed by mineral and plant products (see Figure 6). Among them, the import of mineral products increased significantly by 74%, while plant products experienced the largest decline. The export volume is highest for mechanical and electrical equipment, followed by textiles. Among them, the export of electromechanical equipment increased significantly, followed by chemical products. The growth of electromechanical equipment in China Pakistan trade is inseparable from the interconnection construction under the "the Belt and Road" initiative, such as the construction of Gwadar East Bay Expressway and 300000 kW coal-fired power plant project, as well as supporting projects around Gwadar Port, the smooth operation of coal fired power stations such as Sasiwar and Qasim, and the full implementation of Karot Hydropower Station and power supporting facilities as the first large-scale hydropower construction project under the "the Belt and Road" initiative.

Figure 6 Comparison of China's Import and Export Commodity Structure to Pakistan in 2016 and 2017

In China's import and export trade structure with indicator countries in Central Asia, the increase in imported mineral products was the largest in 2017, followed by chemical products (see Figure 7). Taking Kazakhstan as an example, oil is the main product exported to China. As of October 31, 2017, the China Central Asia natural gas pipeline exported 32.105 billion cubic meters of natural gas to China, a year-on-year increase of 13.33%. The export of crude oil from the China Kazakhstan crude oil pipeline accounts for over 50% of Kazakhstan's total export trade to China. As of March 29, 2017, a total of 100 million tons of oil has been transported to China. China and the indicator countries in Central Asia still mainly focus on light industrial products in their export trade structure, with textiles growing the fastest, followed by mechanical and electrical equipment. With the promotion of the "the Belt and Road" production capacity cooperation, some Chinese new energy vehicle brands have gone abroad and entered Central Asian countries. For example, Jianghuai Automobile of China has cooperated with Kazakhstan, and the new energy vehicles produced in Kazakhstan have become the only domestically produced electric vehicles in Kazakhstan.

Figure 7 Comparison of commodity structure of China's imports (top) and exports (bottom) to Central Asian indicator countries in 2016 and 2017

In China's trade with two indicator countries in Northeast Asia, the total import and export of mechanical and electrical equipment is the highest (see Figure 8). Compared with 2016, mechanical and electrical equipment had the largest increase in imported goods in 2017, reaching 8.2%, while transportation equipment such as vehicles had the highest decrease, reaching 73.8%. In 2017, exports were basically the same as in 2016, with a slight increase in mechanical and electrical equipment.

Figure 8 Comparison of Import and Export Commodity Structure between China and Northeast Asia in 2016 and 2017

In China's commodity trade with West Asia, imports are mainly mineral products, while exports are mainly mechanical and electrical equipment and textiles (see Figure 9). In 2017, the import of mineral products increased significantly compared to 2016, reaching 32%, while exports remained relatively stable. In the West Asian region, Saudi Arabia is the third largest oil exporting country to China, while China is Saudi Arabia's main oil importing country and largest trading partner. Currently, Saudi Arabia has agreed to join the China Pakistan Economic Corridor. In 2017, the United Arab Emirates became China's second largest trading partner in West Asia, second only to Saudi Arabia. Iran is China's sixth largest oil exporter, while China is Iran's main oil importer and largest trading partner. In 2015, Iran joined the Asian Infrastructure Investment Bank, and the two countries pledged to increase bilateral trade to $600 billion by 2025. This shows that under the promotion of the "the Belt and Road" initiative, the importance of Western Asia in China's geopolitics has increased.

Figure 9 Comparison of commodity structure of China's imports (top) and exports (bottom) to indicator countries in West Asia in 2016 and 2017

In China's trade with Western Europe, including Switzerland, imports mainly consist of high-tech goods such as mechanical and electrical equipment, transportation equipment such as vehicles, and optical equipment. These types of goods saw significant growth in 2017 compared to 2016, with mechanical and electrical equipment increasing by nearly double (see Figure 10). In 2017, exports were highest in mechanical and electrical equipment, with an increase of about twice compared to 2016, followed by textile products. The substantial growth of trade volume between China and Western European countries has benefited from the "the Belt and Road" initiative. As an important result of the "the Belt and Road" connectivity construction, China Europe trains have played an increasingly important role in the trade between China and Western Europe. Taking Germany as an example, it has become an important node country on the China Europe freight train route, with six trains departing from China leading to cities such as Hamburg and Duisburg in Germany.

Figure 10: Comparison of Import and Export Commodity Structure between China and Indicator Countries in Western Europe in 2016 and 2017

In China's trade with indicator countries in Eastern Europe, imports are dominated by mineral products, while exports are dominated by mechanical and electrical equipment (see Figure 11). The largest contributor to mineral product imports is Russia, and Sino Russian trade mainly consists of fossil fuels such as oil and coal. In recent years, Russia has attempted to drive economic development in the eastern region through the construction of oil and gas pipeline infrastructure, making it a growth point for Russia's energy exports to Asia, and more importantly, promoting the development of emerging industries and service sectors in the area. Therefore, Russia is committed to the development of oil and gas resources in the east and regards China as its most important market in the Asian region. Among China's exports to Russia, the exports of mechanical and electrical equipment have increased significantly, which is related to the sanctions imposed on Russia by Western countries led by the United States in 2014 and the opportunities created by the "the Belt and Road" initiative for China Russia trade cooperation. The sanctions imposed by the United States and the European Union restrict Western companies from exporting technology and equipment to Russia, providing opportunities for Chinese companies to enter Russia. Sergey Donscoy, Minister of Natural Resources and Ecology of Russia, once said: "We need oilfield equipment, which may be Chinese, and their equipment is competitive in the world." Cheng Yongfeng, Vice President of Yantai Jerry Oilfield Services Company, China's largest oil equipment manufacturer, said: "Sanctions have forced many Western companies to withdraw from the Russian market, which may become a turning point in China and open a long-awaited door for Chinese oil and gas companies." Russian oil company signed a service contract with Jerry to provide hydraulic fracturing and coiled tubing equipment for shale oil development for Yugansk Oil Branch. At the same time, Chinese companies such as Honghua Group, the largest onshore oil drilling rig manufacturer and exporter in China, and Baiqin Oilfield Services, an oil and gas field technology service company, have also significantly increased their business in Russia, setting up offices in Moscow.

Figure 11: Comparison of Import and Export Commodity Structure between China and Indicator Countries in Eastern Europe in 2016 and 2017

In China's trade with southern European countries, imports are mainly mechanical and electrical equipment and mineral products, while exports are mainly mechanical and electrical equipment and textile products (see Figure 12). Among them, the import of base metal products increased the most in 2017 compared to 2016, with the total volume doubling; Secondly, the import of mineral products increased by 77.9%. In exports to indicator countries in southern Europe, textiles remained stable, while mechanical and electrical equipment saw a slight increase.

Figure 12: Comparison of Import and Export Commodity Structure between China and Indicator Countries in Southern Europe in 2016 and 2017

Three investments are stabilizing

Compared to 2016, global foreign direct investment liquidity decreased by 16% to $1.52 trillion, compared to $1.81 trillion in 2016. The main reason for the decline in FDI liquidity is the decrease in flows to developed economies, with FDI inflows to North America and Europe decreasing by 33% and 27% respectively; The FDI flowing to developing countries remained relatively stable, at approximately 653 billion US dollars, a year-on-year increase of 2%. If viewed by region, FDI inflows to Latin America, the Caribbean, and some Asian countries have slightly increased, while FDI inflows to Africa have remained relatively stable. The United States has the largest share of global FDI at $311 billion, followed by China at $144 billion (see Figure 13).

Figure 13: Countries and regions with the highest FDI inflows globally in 2017

（1） In 2017, China's outward direct investment ranked among the top in the world

In the future, Chinese enterprises will continue to expand their foreign trade investment, optimize their investment structure, increase their contribution value in the destination countries of foreign investment, strive to build a brand of Chinese investment, and establish a good image of Chinese investment. At the same time, China is continuously expanding its opening-up to the outside world, relaxing market access, and placing greater emphasis on intellectual property protection. In 2017, China ranked second in the world in attracting foreign investment. In 2017, Chinese enterprises invested a total of 14.36 billion dollars in non-financial direct investment in 59 countries along the "the Belt and Road", accounting for 12% of the total in the same period, up 3.5 percentage points over the previous year, mainly in Singapore, Malaysia, Laos, Indonesia, Pakistan, Vietnam, Russia, the United Arab Emirates, Cambodia and other countries. 62 mergers and acquisitions were carried out in countries along the "the Belt and Road", with an investment of US $8.8 billion, up 32.5% year on year. The joint acquisition of 12% equity of Abu Dhabi Oil Company in the United Arab Emirates by CNPC and China Huaxin with an investment of US $2.8 billion was the largest project. In terms of foreign contracted projects, 7217 new foreign contracted project contracts were signed by Chinese enterprises in 61 countries along the "the Belt and Road", with the newly signed contract amount of US $144.32 billion, accounting for 54.4% of the newly signed contract amount of China's foreign contracted projects in the same period, up 14.5% year on year; Completed a turnover of 85.53 billion US dollars, accounting for 50.7% of the total amount for the same period, a year-on-year increase of 12.6%.

（2） China's investment in the Eurasian region is mainly concentrated in the fields of agriculture, manufacturing, energy, and infrastructure

The Hinkley Point C nuclear power project is a tripartite cooperation project between China, the UK, and France. This project is the first new nuclear power project built in the UK in over 20 years. After completion, it will meet 7% of the UK's electricity demand, equivalent to reducing 9 million tons of carbon dioxide emissions annually. During the project construction process, it will also provide 26000 job opportunities. The Hinkley Point C nuclear power project is China's largest single investment in Europe and the first nuclear power project that China has participated in the construction of in Europe. It is known as the "golden project of the golden age" of China UK relations.

Belgium is a member of the Asian Development Bank and a partner of the the Belt and Road Initiative. In 2017, the construction of the China Belgium Science and Technology Park progressed smoothly and is expected to be completed by the end of 2018. The port of Zeebrugge in Belgium has been established as a free trade zone with China. Starting from May 2017, the number of China Europe freight trains between China and Zeebrugge port is expected to reach 3-4 trains per week. In order to promote economic cooperation between China and Belgium, COSCO Shipping Port Company obtained the franchise rights for the container terminal at Zebuluhe Port on January 22, 2018.

Hungary is China's main investment partner in Central and Eastern Europe. At present, China's total investment in Hungary has reached 4.1 billion US dollars, accounting for nearly half of China's total investment in Central and Eastern Europe. China's investment fields cover chemical, financial, communication, logistics, automotive industries, etc. A group of strong Chinese funded enterprises such as Bank of China, Shandong Wanhua, Huawei, ZTE, etc. are operating well and continuously expanding their investments. Chinese funded enterprises have created approximately 10000 job opportunities in the local area and made positive contributions to solving the local employment problem.

China Poland pragmatic cooperation is further promoted. Chinese companies have completed the acquisition of Poland's largest solid waste treatment company for 123 million euros, making it the largest investment project by China in Poland to date. In addition, the LED lighting equipment factory project built by Fujian Hongbo Group in Opole Province, western Poland, is also China's largest green investment project in Poland.

Serbia is China's partner in the Balkans. In 2017, Chinese steel companies invested 46 million euros to acquire a steel plant in Serbia, which is expected to bring 5000 job opportunities. As of September 2017, China has financed 5.5 billion euros from Serbia, accounting for approximately 18% of Serbia's gross domestic product in 2017.

Greece continues to be a hot spot for Chinese investment. In addition to the COSCO Piraeus Port project, China State Grid has also acquired a 24% stake in a Greek power operator. In May 2017, China and Greece signed the "2017-2019 Action Plan". If the plan is successfully implemented, Greece will be able to receive billions of euros in investment from China.

The CIS countries are also hotspots for Chinese investment, with China and Russia cooperating to invest in the world's largest liquefied natural gas project - the Yamal project; Investing in Tajikistan thermal power plants ensures local power and heating supply; The refinery put into operation in Kyrgyzstan has filled the local industrial gap. The international logistics park established by Kazakhstan in Lianyungang has become an important cargo transit base.

In the South Asian region, the China Pakistan Economic Corridor has driven the development of various fields such as energy and transportation in Pakistan. For example, in November 2017, the first unit of the Kasim Port coal-fired power plant in Pakistan was officially put into operation for power generation. This power station is equipped with two world advanced 660 MW supercritical coal-fired units, and upon completion as planned, it can provide clean and affordable energy for 4 million households in Pakistan.

Investment cooperation between China and ASEAN countries is developing rapidly. According to the investment report released by ASEAN in November 2017, China invested 9.211 billion US dollars in ASEAN in 2016, ranking behind the European Union (28 countries) with 30.46 billion US dollars, Japan with 13.989 billion US dollars, and the United States with 11.657 billion US dollars. According to data released by the Chinese Embassy in ASEAN, as of 2017, the cumulative investment between China and ASEAN has exceeded 160 billion US dollars, and a number of major projects such as railways, highways, bridges, ports, and power stations have been started or completed. Chinese companies have established 26 projects with the nature of overseas economic and trade cooperation zones in eight ASEAN countries, attracting more than 300 Chinese funded enterprises to enter the zones. The cumulative investment has reached 1.77 billion US dollars, and the output value has reached 9.02 billion US dollars.

（3） China's investment cooperation in the Eurasian region is expected to make significant progress in 2018

2018 is the first five years since the "the Belt and Road" was proposed. Over the past five years, China has accumulated rich experience in Eurasia, and has also won wide support from Eurasian countries. After the 19th National Congress of the Communist Party of China, the "the Belt and Road" was written into the Party Constitution, which reflects China's determination to promote international cooperation, and also means that Eurasian cooperation has great potential. As an advocate and active promoter of cooperation in the Eurasian region, China will promote cooperation in the following areas.

First, take the "the Belt and Road" as the platform to promote the policy and strategy docking of countries in Eurasia. Eurasian countries are all in the stage of development and revitalization, each choosing a social system and development model that suits their own national conditions, and seeking the greatest common denominator of economic development and the interests of all countries. China will actively promote and build various investment cooperation mechanisms in the Eurasian region, strengthen economic policy coordination, align development strategies, and strive to achieve coordinated and linked development.

Secondly, continue to promote investment facilitation. Investment cooperation in the Eurasian region cannot be separated from trade facilitation, and China actively promotes investment facilitation in the Eurasian region on the basis of mutual benefit. Gradually achieve the free flow of goods, capital, services, and technology.

Thirdly, innovate investment methods. Implement the "the Belt and Road" initiative through mutual benefit and win-win cooperation, so that China's rise will benefit the world. For developing countries, we will focus on leveraging their abundant resources and low-cost advantages, combining them with China's advantages in infrastructure and some mid to low end industries. We will select representative countries to establish bilateral funds and build a platform for industrial cooperation between the two sides. For developed countries, establish bilateral funds and build a two-way industrial cooperation platform to invest in advanced technologies, products, services, and business models, accelerate the construction of bilateral funds, and reduce investment barriers.

Fourthly, strengthen financing cooperation and promote project implementation. Finance is the lifeblood of modern economy, and growth is only powerful when the bloodline is connected. There are many large-scale economic cooperation projects in the Eurasian region, which require a large amount of funds. We should build a diversified and cooperative investment and financing system in the region, make full use of the existing investment and financing platforms such as the Asian Infrastructure Investment Bank, the the Silk Road Fund and the China Eurasian Economic Cooperation Fund, jointly promote cooperation in projects in energy, transportation, agriculture, people's livelihood and other fields, and create an industrial chain, value chain, and logistics chain with deeper integration, stronger driving force, and broader benefits.

Fifth, establish an investment promotion network for countries along the route. Accelerate the establishment of branches in countries along the "the Belt and Road", cultivate bridgeheads for investment promotion in key countries, and play a positive role in expanding effective channels for China and countries along the "the Belt and Road" to carry out two-way investment cooperation, accumulate overseas resources, promote industrial docking, and promote market integration. Establish and improve the "the Belt and Road" investment promotion international network by setting up investment promotion specialists in foreign business counselors' offices of countries along the line, and enhance the practical operation ability of industry docking, project promotion and landing.

Deepening cooperation among the four regions

In order to promote the construction of the "the Belt and Road", China encourages domestic regions to give play to their comparative advantages and adopt pragmatic development strategies to promote the northwest, northeast and southwest regions of China to increase their economic cooperation with neighboring countries along the "the Belt and Road" in an all-round way. In the past two years, the local cooperation between the northwest, northeast and southwest regions of China and the surrounding countries along the "the Belt and Road" has been deepening, and the effect on connectivity and economic and trade cooperation has been prominent.

（1） Cooperation between Northeast China and Far East Russia

The trade and investment between the four provinces and regions in Northeast China and Russia have shown a recovery growth. In 2017, there was a recovery in trade between the four provinces and regions in Northeast China and Russia. In 2017, the total import and export value of Heilongjiang Province to Russia reached 74.42 billion yuan, a year-on-year increase of 22.5%, accounting for 13.06% of the national trade with Russia during the same period and 58.1% of the province's total import and export value. This is 1.7 percentage points higher than the national import and export growth rate and 5.4 percentage points higher than the province's import and export growth rate. The trade volume between Manzhouli Customs District and Russia alone reached 33.03 billion yuan, a year-on-year increase of 19.8%, which is 9.4 percentage points higher than the national trade growth rate with Russia and 5.8% of the national trade with Russia. From January to October 2017, the trade volume between Jilin Province and Russia reached 3.089 billion yuan, a year-on-year increase of 37.4%, accounting for 0.67% of the total national trade volume with Russia during the same period, 15.4 percentage points higher than the growth rate of trade between the two countries during the same period. From January to October 2017, the total bilateral trade volume between Dalian Customs District in Liaoning Province and Russia was 29.77 billion yuan, an increase of 11.5% over the same period last year, accounting for 6.42% of the country's total trade volume with Russia during the same period, which was 10.5 percentage points lower than the national growth rate during the same period. In the future, with the good economic conditions of China and Russia, the four provinces and regions in Northeast China will have greater development space for economic and trade cooperation with Russia. Among the four provinces and regions in Northeast China, Heilongjiang has the largest trade volume with Russia. Heilongjiang Province has 25 first-class border trade ports with Russia, while Jilin Province has only one port, Hunchun, with a relatively low cargo volume. Liaoning Province does not border Russia and mainly maintains close economic ties with Russia through sea and air freight. Its cargo volume and trade volume with Russia are both greater than those of Jilin Province.

From the perspective of outward investment, the four provinces and regions in Northeast China have relatively small investment amounts in Russia. Among them, Heilongjiang Province is the province with the largest investment in Russia. By 2017, Heilongjiang had built 18 industrial parks in the Russian Communist Party, of which 5 parks were included in the Russian Far East Rapid Development Zone, paying a total of 210 million US dollars in taxes to the Russian side and providing 3800 job opportunities, contributing to the development of the Russian region. By the end of 2015, Heilongjiang Province had accumulated 505 investment enterprises in Russia, with a total investment of 9.92 billion US dollars and an actual direct investment stock of 2.59 billion US dollars. Due to factors such as the depreciation of the ruble, Heilongjiang's investment in Russia decreased in 2016, with recorded investments of only about 2 billion US dollars. In recent years, Liaoning Province has increased its investment in Russia, but the total amount is not high. In 2013, Liaoning Province approved 174 foreign direct investment enterprises, but only 2 enterprises made direct investments in Russia. Liaoning Province's investment in Russia is mainly in the manufacturing industry, followed by wholesale and retail, and mining industries, reflecting that the proportion of high-tech investment is still relatively low. Resource based fields dominated by minerals and low tech fields with relatively high profits are still the main investment flows.

The economic and trade cooperation zone within Russia, led by Northeast enterprises, has developed. Overseas economic and trade cooperation zones are a key area of economic and trade cooperation between Northeast China and Russia. At present, there are 20 overseas economic and trade cooperation zones confirmed and assessed by the Ministry of Commerce, and 4 economic and trade cooperation zones established within Russia, all of which are located in Siberia and the Far East region of Russia. Except for the Russia China Tomsk Timber Industry and Trade Cooperation Zone (implemented by AVIC Forestry Co., Ltd., which is controlled by China Aviation Technology International Holdings Co., Ltd. and jointly owned by Yantai Northwest Forestry Co., Ltd. and Yantai Development Zone Distribution Center), the other three economic and trade cooperation zones are led by enterprises from Heilongjiang.

The Ussuriysk Economic and Trade Cooperation Zone in Russia is located in Maileo District, Ussuriysk City, Far Eastern Primorsky Krai. It is jointly established by Heilongjiang Jixin Industry and Trade Group, Zhejiang Kangnai Group, and Wenzhou Huarun Company as Kangji International Investment Company. The cooperation zone was approved by the Ministry of Commerce of China in 2006, and its market positioning is aimed at Russia and other CIS countries as well as European countries. The development focus is on industries such as light industry, electromechanical, and wood industry. By the end of 2016, an investment of 900 million yuan had been made in the economic and trade cooperation zone, and 11 standard factory buildings had been built. Up to 30 enterprises have settled in the cooperation zone, producing 30 million pairs of shoes, 40 million packaging materials, and 3.5 million sets of clothing annually, with an annual output capacity of 2.6 billion yuan. In April 2015, the Ministry of Commerce and the Ministry of Finance of the People's Republic of China approved the Heilongjiang Dongning Huaxin Sino Russian (Coastal Border Region) Modern Agricultural Industry Cooperation Zone as a national level overseas agricultural economic and trade cooperation zone, which was included in the list of priority projects of the national "the Belt and Road" initiative. In 2017, the cooperation zone had 68000 hectares of arable land, 14 planting areas, and a mechanization level of 100%. It had 7 parks including grain processing, storage, and processing areas, as well as pig breeding areas, beef cattle breeding areas, dairy cattle breeding areas, and a soybean oil processing plant with an annual processing capacity of 100000 tons. The cooperation zone focuses on hiring local people, and by 2017, more than 400 local jobs will be arranged, including management, drivers, planting and breeding, translation, etc. It is expected that 2000 job positions will be provided in 2018. In 2013, Heilongjiang Mudanjiang Longyue Economic and Trade Co., Ltd. established the Russian Longyue Forestry Economic and Trade Cooperation Zone in Amur Park, Jewish Oblast, Russia. In 2015, it was confirmed by the Ministry of Commerce as a national forestry industry oriented overseas economic and trade cooperation zone. The cooperation zone is planned to be constructed in three stages over an eight year period: the initial stage is from 2013 to 2015; The period from 2016 to 2018 is the comprehensive construction stage; The period from 2019 to 2021 is the stage of development and growth, with a planned total investment of 1.3 billion US dollars and the introduction of 40 enterprises into the park. We have completed a cumulative investment of 170 million US dollars in basic supporting infrastructure, leveled over 1 million square meters of land in the starting area, and constructed infrastructure such as water, electricity, roads, and heating. We have a self built railway dedicated line of 9.1 kilometers, which is connected to the Trans Siberian Railway.

The overseas economic and trade cooperation zone established by Northeast enterprises in Russia plays an important role in policy coordination, facility connectivity, production capacity cooperation, and achieving smooth trade between Northeast China and the Siberian Far East region of Russia. On the one hand, with the help of the "the Belt and Road" initiative, the development of the cooperation zone has invested in Siberia and the Far East, where the development of Russia is relatively slow, which has promoted the local economic and social development, benefited local residents and enhanced the image of Chinese enterprises. On the other hand, the development of the cooperation zone has also established a platform for the four provinces and regions in Northeast China to strengthen cooperation with Russia, opening up a new path for the economic development of the Northeast region.

（2） Local Cooperation between Southwest China and ASEAN Countries

With the support of the "the Belt and Road" initiative, local cooperation between southwest China and ASEAN countries has developed smoothly. On July 14, 2017, the rotating chairman of the ASEAN Connectivity Coordination Committee and the Permanent Representative of the Philippines to ASEAN, Elizabeth Boonsusesso, said that ASEAN was willing to promote the docking between the ASEAN Connectivity Master Plan 2025 and the "the Belt and Road" initiative, and welcomed multilateral financial institutions such as the Asian Infrastructure Investment Bank to actively participate in the infrastructure construction of ASEAN countries. Thailand, Vietnam and other ASEAN countries also agree to link their economic development plans with the "the Belt and Road" initiative. On June 22, 2017, Thai Deputy Prime Minister Somki stressed that Thailand should connect with the "the Belt and Road" initiative, especially to realize the connection between the eastern economic corridor railway and the China Thailand railway cooperation project, so that the eastern economic corridor will become the logistics center of the region. At the same time, the leaders of China and Vietnam are also actively promoting the docking of the "the Belt and Road" and the "two corridors and one circle". With the support of policies, the Kunming Bangkok Highway has been completed, the China Laos Railway and the China Thailand Railway have been further constructed, and the Laos Saisita Industrial Development Zone, the China Indonesia Economic and Trade Cooperation Zone, the China Malaysia Guandan and Qinzhou Industrial Park, which are invested by enterprises in southwest China, are also advancing. On January 10, 2018, the Second Lancang Mekong Cooperation Leaders' Meeting was held in Phnom Penh, the capital of Cambodia. Under the coordination of frameworks such as Lancang Mekong Cooperation and China ASEAN Cooperation, new momentum will emerge in regional cooperation between Southwest China and ASEAN countries.

The railway construction between Yunnan Province and Myanmar, Laos, and Vietnam has shown initial results. Yunnan Province continues to deepen its cooperation in transportation with other countries, vigorously building a three-dimensional transportation network connecting neighboring ASEAN countries. The comprehensive transportation system, which includes highways, railways, aviation, and water transportation connecting ASEAN neighboring countries from the east, center, and west, has taken shape. Among them, the China Myanmar Railway, the China Laos Railway, and the China Vietnam Railway under construction are of great significance to the infrastructure connectivity between southwest China and surrounding countries and to serve the "the Belt and Road". In 2017, the railway construction in Yunnan Province completed an investment of 20.73 billion yuan, and the domestic section of the China Laos International Railway, the Yumo Railway, has completed an investment of 17.81 billion yuan so far, accounting for 35.2% of the total investment. By 2018, the investment in railway construction in Yunnan is expected to reach 25 billion yuan, fully constructing outbound railway channels such as "China Vietnam, China Laos, China Myanmar, China Myanmar India", and striving to build an international transportation hub facing South Asia and Southeast Asia.

The starting point of the China Myanmar International Railway is Kunming, Yunnan Province, China, and the endpoint is Yangon, Myanmar, with a total length of about 1920 kilometers. The Kunming Ruili Railway in China is 690 kilometers long. On February 6, 2018, the Xianghe Tunnel of the China Myanmar International Railway was fully connected. The extensive railway renovation project has a total length of 175 kilometers, with a target speed of 200 kilometers per hour for passenger trains and a bridge tunnel ratio of 63%. It is an important component of the western line of the Pan Asian Railway and the Yunnan Tibet Railway, and is a national first-class double track electrified railway. The Guangda Railway is connected to the Kunming Guangtong Railway to the east, the Chengdu Kunming Railway and the Dali Lijiang Railway to the north, and the under construction Dali Ruili Railway and Dali Lincang Railway to the west. After the railway is opened, intercity trains are expected to connect Kunming and Dali, with a travel time of only about 2 hours, nearly 4 hours less than before. The completion of the China Myanmar International Railway will improve the transportation capacity of western Yunnan, promote the social and economic development of western Yunnan in southwest China, and contribute to the implementation of the "the Belt and Road" initiative in southwest China.

The friendship tunnel, the cross-border tunnel of the China Laos railway, was successfully constructed. China Laos Railway is an overseas railway project mainly invested by China and jointly operated with other countries. The China Laos Railway will be connected with China's railway network in the future, and is expected to be open to traffic in 2020. The railway adopts Chinese technical standards and uses all Chinese equipment. In December 2016, the whole China Laos railway line was started. The railway starts from Mohan Boten port on the border between China and Laos in the north and ends in Vientiane in the south. The total length is 414 kilometers. Nearly 63% of the road sections are composed of bridges and tunnels, with a design speed of 160 kilometers per hour. There are 32 stations along the line. The expected construction period is five years, and the total investment is nearly 40 billion yuan. China and Laos will jointly build the railway at 70% and 30% of the shares. As of March 27, 2018, the friendship tunnel of the China Laos Railway has been successfully constructed, and the Laos section has been excavated for 300 meters. The tunnel spans China and Laos, with a total length of 9595.407 meters. The main construction line for the Chinese section is 7170 meters, and the main construction line for the Laos section is 2425 meters. The maximum burial depth of the tunnel is 240 meters. The China Laos Railway is an important infrastructure connecting China and Laos, and also an important part of the Trans Asian Railway. The China Laos railway plays an important role in the connection of transportation infrastructure between China and ASEAN countries. On the one hand, the completion of the railway will contribute to the improvement of transportation in Laos and create a large number of employment opportunities for the country; On the other hand, reducing the cost of railway passenger and freight transport in countries along the "the Belt and Road" and promoting the development of cities along the line will inject new impetus into the economic development of southwest China and promote the development of regional industrial economy in southwest China and Southeast Asia. This railway not only connects China and Laos, but will also be connected to railways in countries such as Thailand and Malaysia in the future.

The preliminary formation of the Guangxi ASEAN maritime corridor. One is that the Beibu Gulf Port in Guangxi has been built into a billion ton port. By the end of 2017, Beibu Gulf Port had 83 10000 ton berths with a throughput capacity of 259 million tons. Secondly, the cooperation network between China and ASEAN port cities is basically complete. Guangxi Beibu Gulf Port has achieved maritime connectivity with 47 ports in seven ASEAN countries. As of September 2017, Beibu Gulf Port in Guangxi has opened 45 domestic and foreign trade routes, including 29 foreign trade routes, basically achieving full coverage in Southeast Asia, involving a total of 5 Singapore routes. Thirdly, the Beibu Gulf Regional International Shipping Center will be basically completed during the 13th Five Year Plan period. We will focus on promoting the construction of 400000 ton level tunnels and terminals in Fangcheng Port, and 200000 ton level container terminals and supporting tunnels in Qinzhou Port. Among them, the Qinzhou Port 300000 ton inbound channel project will be completed in 2017. By 2020, the comprehensive throughput capacity of Beibu Gulf ports will reach 450 million tons, with 130 berths of over 10000 tons and a container throughput capacity of 10 million TEUs. Strengthen cooperation with international major ports such as Singapore, Hong Kong, and Guangzhou, increase international shipping routes, and build a shipping network covering ports in ASEAN countries and countries along the Maritime Silk Road.

Overseas economic and trade cooperation zones are steadily developing. From the perspective of overseas industrial parks, the economic and trade cooperation between Southwest China and ASEAN countries is very active. Among the 20 overseas economic and trade cooperation zones confirmed for assessment by the Ministry of Commerce, there are as many as 8 economic and trade industrial parks in ASEAN countries, and Southeast Asia is the most densely populated area of overseas economic and trade cooperation zones (see Table 2). There are three industrial parks led by enterprises in southwestern China, namely the Laos Vientiane Saiseta Comprehensive Development Zone, the China Indonesia Economic and Trade Cooperation Zone, and the Malaysia China Kuantan China Malaysia Qinzhou Industrial Park.

表2 中国在东南亚地区的经贸合作区（获国家批准）

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Table 2 China's Economic and Trade Cooperation Zones in Southeast Asia (Approved by Countries)

The Laos Vientiane Saytha Comprehensive Development Zone project is a cooperation project jointly determined by the Chinese and Laotian governments, the only national level overseas economic and trade cooperation zone in Laos, and an early harvest project included in China's "the Belt and Road" initiative planning. The operating entity of the development zone is Laos China United Investment Co., Ltd., which was established by Yunnan Overseas Investment Co., Ltd. and the Vientiane Municipal Government of Laos with contributions of 98 million US dollars and 30 million US dollars respectively. The total share capital of the company is 128 million US dollars. By 2017, there were 39 companies established in China, Laos, Thailand, Malaysia, New Zealand and other countries, with a total investment of about 500 million US dollars. Among them, Chinese companies accounted for the highest share, about 60%. The China Indonesia Economic and Trade Cooperation Zone project was undertaken by Guangxi Agricultural Reclamation Group Co., Ltd. and received approval for the project construction plan from the National Development and Reform Commission and the Ministry of Commerce in May and July 2009, respectively. The industrial positioning of the cooperation zone mainly includes industries such as automobile assembly, machinery manufacturing, household appliances, fine chemicals, and new materials. In 2017, the cooperation zone introduced a total of 7 investment projects, including 1 well-known domestic enterprise in China, which achieved good economic and social benefits. From 2012 to February 2018, 40 enterprises from China, Indonesia, Taiwan, China and other countries and regions have settled in the cooperation zone, 25 enterprises have been completed and put into operation, and 6 enterprises are under construction. The Malaysia China Kuantan China Malaysia Qinzhou Industrial Park, promoted by the prime ministers of China and Malaysia, is the world's first sister zone to jointly build industrial parks in each other's countries, creating a new international cooperation model of "dual parks between the two countries". The China Malaysia Qinzhou Industrial Park is a key project for Guangxi's open development, while the Malaysia China Kuantan Industrial Park is Malaysia's first national level industrial park. The industrial park is jointly invested by China and Malaysia, and both parties jointly organize investment promotion. By July 2017, the China Malaysia Qinzhou Industrial Park had introduced about 90 industrial projects with a total investment of approximately 40 billion yuan. In the past two years, the economic and trade cooperation between Malaysia and China under the "the Belt and Road" initiative has been warming up, and the Malaysia China Kuantan Industrial Park has also attracted much attention. As of 2017, the Kuantan Industrial Park has attracted domestic and foreign investment of 18.1 billion Malaysian Ringgit, created over 24000 job opportunities, and signed investment agreements with 10 projects with an investment amount exceeding 24.5 billion RMB, including the joint steel project with an annual output of 3.5 million tons, the project with an annual output of 12 million sets of tires, and the project with an annual output of 200000 tons of nitrogen phosphorus potassium compound fertilizer. In December 2017, the joint steel rolling section has been put into operation, and in the first half of 2018, the tire project will begin construction. On March 21, 2018, the "Kuantan Street" in the Qinzhou Industrial Park between China and Malaysia was put into use, marking another landmark step in the "dual park" cooperation between Qinzhou in Guangxi, China and Kuantan City in Malaysia.

Overall, the positioning of industrial parks jointly built by enterprises in the Southwest region and ASEAN countries is relatively reasonable. Taking the Qinzhou Industrial Park in China and Malaysia as an example, the park not only features traditional industries with advantages from both countries, but also attracts high-tech enterprises. The key project of the industrial park, Xindeli Optoelectronics Technology R&D and Production Base Project, is invested and constructed by Guangxi Xindeli Technology Co., Ltd. The company's independently developed and produced 3D hot bending machine saves more than 50% energy compared to world-renowned brands of the same type, and overall reduces manufacturing costs by more than 40%. The company is also the only supplier of Verzion, the largest telecommunications operator in the United States, in China, a first tier supplier of Samsung in South Korea, and the largest supplier of glass protective film ZAGG in the United States. Guangxi Zhongma Kaili Digital Co., Ltd. invests in the construction of SEIKI intelligent display terminals and other high-tech product manufacturing bases, and is committed to advanced electronic product manufacturing and research and development, holding 100% of the SEIKI brand. However, due to inadequate publicity, domestic and foreign enterprises lack understanding of overseas economic and trade cooperation zones and industrial parks, which to some extent limits their investment and construction in these parks. Different countries have different requirements for the entry threshold of industrial parks, some of which are too strict and differ greatly from the real environment, which brings difficulties to the investment attraction of industrial parks. In addition, the construction of the industrial park differs from the surrounding environmental construction of the host country, resulting in a poor external environment of the industrial park and insufficient external attractiveness. The solution to the problem requires the host country to increase regional infrastructure investment and highlights the importance of intergovernmental consultations. Although the economic and trade cooperation between Southeast Asia and Southwest China is close and dynamic, the internal stability problems of some ASEAN countries, such as Thailand and Myanmar, may bring potential risks to the local cooperation between Southwest China and ASEAN countries under the the Belt and Road Initiative.

（3） Local Cooperation between Xinjiang and Central Asian Countries

Xinjiang, China borders 8 countries in the Eurasian region, with 17 first-class ports and 12 second-class ports. However, due to the unreasonable economic structure, poor transportation, and unstable surrounding environment, Xinjiang is difficult to leverage its geo economic advantages. The "the Belt and Road" initiative has given Xinjiang a new direction to play its regional advantages. The Vision and Action to Promote the Joint Construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road has established the position of Xinjiang as a "core area", which brings opportunities for Xinjiang to deepen economic and trade cooperation with Central Asian countries, become an important window for opening to the west, and become an important transportation hub, trade logistics, culture, science and education center on the Silk Road Economic Belt.

The China Europe and Central Asia freight trains, with Xinjiang ports as the hub, help Xinjiang connect with Central Asian countries. With the construction of the New Eurasian Continental Bridge, Xinjiang's cross-border advantages have been fully utilized, highlighting its role as a transportation hub connecting Central Asian countries and Europe. Relying on the New Eurasian Continental Bridge, the China Europe freight train has formed three transportation routes: central, eastern, and western. Among them, the western route exits from the Xinjiang port and enters Europe through Central Asian countries such as Kazakhstan. Since the official launch of the "China Europe Railway Express" brand by China Railway Corporation on June 8, 2016, 39 China Europe trains have been opened, including 31 trains departing from Xinjiang and passing through Kazakhstan to Europe, including 7 China Europe trains such as "Chongqing Xinjiang Europe", "Han Xinjiang Europe", "Rong Xinjiang Europe", "Yi Xinjiang Europe" (see Table 3 for details), as well as Central Asia trains such as "Tianma", "Chang'an", "He Xinjiang Europe" (see Table 4 for details). As of the end of 2017, there were over 4500 China Europe freight trains entering and exiting from Alashankou, Xinjiang, accounting for about 70% of the national total. In 2018, the Urumqi Assembly Center of the China Europe Railway Express plans to operate 1400 trains and point-to-point trains to the capitals of various Central Asian countries. The daily average of 3.5 trains to Central Asia will be maintained, striving to make the operation of trains to Europe normalized and reach the level of one train per week. In order to improve the operational efficiency of the China Europe freight train, the Xinjiang railway department has strengthened communication and coordination with the Kazakhstan railway department to establish a multi form intermodal cross-border channel model. The China Europe freight train has brought Xinjiang closer to Central Asian countries, improved its operational efficiency, increased its attractiveness to enterprises, and created conditions for mutual benefit and win-win cooperation between Xinjiang and neighboring Central Asian countries such as Kazakhstan.

表3 主要经新疆出境的中欧班列

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Table 3: China Europe freight trains mainly departing through Xinjiang

表4 主要经新疆出境的中亚班列

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Table 4: Central Asian trains mainly departing through Xinjiang

The Xinjiang westbound international train has basically achieved coverage of five Central Asian countries. Since the first westbound international train was launched by Urumqi Railway Bureau on March 8, 2014, the destinations of the Xinjiang westbound international train have basically achieved full coverage of various railway stations in the five Central Asian countries, including major cities in Kazakhstan, Tajikistan, Turkmenistan, Kyrgyzstan, and Uzbekistan, radiating throughout the Central Asian region. By 2016, a total of 256 international freight trains had been operated from Xinjiang to Central Asia, achieving normalization and marketization of international freight trains from Xinjiang to Central Asia, becoming the most densely packed train route in China to Central Asia. On February 25, 2017, the westbound international freight train departing through Khorgos opened, and the train arrived in Almaty in nearly 10 hours shorter than the departure through Alashankou. The previous westbound trains have been exiting through the Alashankou Port in Xinjiang, mainly targeting Kazakhstan, Uzbekistan, Kyrgyzstan, Russia, Poland, and Germany.

The "China Kyrgyzstan Uzbekistan Railway" project has new developments. In 2012, the "China Kyrgyzstan Uzbekistan Railway" project starting from Kashgar had already completed its demonstration. The "China Kyrgyzstan Uzbekistan Railway" will not only facilitate the connection between Xinjiang, China and Kyrgyzstan, Uzbekistan, but also strengthen economic and trade relations with Turkmenistan and Iran in West Asia. On December 13, 2017, the President of Kyrgyzstan held consultations on the China Kyrgyzstan Uzbekistan railway project. On December 17, 2017, China Kyrgyzstan Uzbekistan decided at the Tashkent meeting to finalize the direction of the railway in April 2018. The meeting also decided on the project's timeline, funding sources, and the development of feasibility studies. If the project is implemented, the Turgat Port in Kashgar will be connected to the "China Kyrgyzstan Uzbekistan Railway", leading to Central Asian countries such as Kyrgyzstan, Uzbekistan, Turkmenistan, and finally reaching Europe, thus contributing to the open development of southern Xinjiang and strengthening its economic and trade relations with Central Asia.

The China Kazakhstan International Border Cooperation Zone is developing rapidly. The China Kazakhstan Khorgos International Border Cooperation Center is the first international border cooperation center established by China and other countries, and also a demonstration area for regional cooperation under the framework of the Shanghai Cooperation Organization. The cooperation center is a cross-border free trade zone jointly built by China and Kazakhstan, with a Chinese area of 3.43 square kilometers and a Kazakh area of 1.85 square kilometers. At present, the cooperation center has settled in more than 5000 Chinese and Central Asian businesses, with buyers purchasing over 4 million RMB per day. More than 6000 people from China and Central Asian countries work here. Since the operation of the cooperative center in 2012, the number of passengers has grown rapidly. In 2017, the number of visitors to the cooperation center reached over 5.54 million, with over 90000 vehicles entering and exiting the park. As of the end of 2017, 28 key projects with a total investment of over 20 billion yuan have settled in the cooperation center, of which 18 projects have started construction and completed an investment of 6.27 billion yuan. On January 29, 2018, China and Kazakhstan jointly held an investment promotion conference and a project signing ceremony at the China Kazakhstan Khorgos International Border Cooperation Center. During this period, 35 projects were signed with a total investment of 20.1 billion yuan. China and Kazakhstan also signed six strategic cooperation project agreements, including the agreement to open Khorgos Branch and carry out cross-border payment business cooperation, the international fruit and vegetable distribution center project with US $20 million, and the strategic framework agreement for tourism cooperation. According to the statistics of Khorgos Border Inspection Station in Xinjiang, from January to March 2018, the China Kazakhstan Khorgos International Border Cooperation Center released 1.09 million passengers from China and Kazakhstan, with 46000 inbound and outbound vehicles, up 9% and 119% respectively from the same period. The reason why the cooperation center can develop rapidly is that it is bordered by Khorgos and Kazakhstan and has convenient transportation. It is closely related to the nearest and most convenient border port facing Central Asia, West Asia and Europe. In the process of promoting the construction of the "the Belt and Road", relying on such unique geographical advantages, Xinjiang has constantly expanded its import and export trade with Central Asian countries, creating conditions for the prosperity of foreign trade characterized by border trade. In the future, with the deepening of the "the Belt and Road" construction, Xinjiang's position as a regional trade and logistics center in western China and Central Asian countries will become more prominent.

Five prospects

From a trade perspective, China and 26 Eurasian countries experienced stable economic and trade development in 2017. Compared with Northeast Asia, Southeast Asia, Western Europe, Eastern Europe, and Central Asia, the trade volume growth rate in Eastern Europe and Central Asia, except for Russia, is relatively fast, but the overall level is still relatively low. From the development trend of trade volume, import and export volume, it can be seen that Northeast Asia and Western Europe are still the main regions for China to carry out trade cooperation in the Eurasian region. With the deepening of the "the Belt and Road" initiative, the trade cooperation between Southeast Asia and China has developed rapidly and has become an important area for China to carry out trade cooperation in Asia. China has optimized the import and export trade structure of 26 countries. Although the products are still mainly light industry, the proportion of high-tech goods such as mechanical and electrical equipment has increased. In 2017, China's outward direct investment ranked among the top in the world, and investment has stabilized. From the perspective of local cooperation, China's northeast, northwest, southwest and other regions give play to their comparative advantages, adopt a pragmatic development strategy, deepen local cooperation with neighboring countries along the "the Belt and Road", and have achieved preliminary results in connectivity and economic and trade cooperation. From the effects of trade, investment, and local cooperation mentioned above, it can be seen that there is enormous potential for the future development of economic and trade cooperation in the Eurasian region. However, the low level of trade facilitation, potential political security risks, insufficient investment assessment and other issues will affect the cooperation and development of Eurasia under the the Belt and Road framework in the future.

The degree of trade facilitation needs to be improved. The main obstacles to national benefits in trade cooperation are low efficiency, complex procedures, and inadequate infrastructure. The Trade Facilitation Index (ETI) released by the World Economic Forum and the Global Trade Facilitation Alliance (see Figure 14) shows that countries located in Europe have significantly better facilitation levels than Asian countries, with the median taken by region. Among them, Western European countries have the highest level of facilitation, followed by Southern and Eastern Europe, with no significant regional differences. However, considering the role of individual countries, Eastern European countries are actually affected by Russia's level of facilitation, while Southern Europe is negatively impacted by Greece. The poor indicators of trade facilitation in Russia and Greece are mainly reflected in the operating environment (OE), followed by poor domestic market access (FMA) and transportation services (AQTS). It can be seen that the problems that need to be improved in future regional economic and trade cooperation are mainly concentrated in these areas. Asian countries have the highest level in Northeast Asia, followed by Southeast Asia, and the lowest is Pakistan in South Asia. If Iran is not considered, the overall level of countries in West Asia is not low. In Asia, there is a polarization in the level of facilitation among countries in different regions. For example, Singapore ranks first in the world, while Iran and Pakistan are almost at the bottom. Iran's worst indicator is market access, while Pakistan's is information and communication availability (AUICTs) and poor market access. Poor market access means that the government has insufficient market openness in international trade, and has imposed many restrictive measures on various types of import and export trade, which significantly undermines economic and trade cooperation between countries. In the future, to improve the level of trade facilitation in Eurasia, it is necessary to promote Eurasian countries to reduce trade barriers and properly resolve trade frictions. Therefore, actively promoting multilateral and bilateral free trade negotiations in Eurasia is an important task for Eurasian economic and trade cooperation and development under the "the Belt and Road" initiative.

Figure 14 Comparison of ETI Index of 24 Eurasian Countries in 2014 and 2016

Investment risk assessment needs to be strengthened. Firstly, the investment risk borne by the State Bank of China will increase in the future. Taking the National Development Bank and the Export Import Bank of China as examples, most of the foreign loans committed by these two banks are invested in the "the Belt and Road" initiative area, accounting for about 80% of the total foreign loans of the two major banks, more than half of which are committed loans for infrastructure such as roads, railways and power generation, and the rest are financing loans. Secondly, the risks for Chinese enterprises have increased. Most of the policy bank loans under the "the Belt and Road" initiative involve Chinese enterprises, which not only act as suppliers of equipment and raw materials, but also undertake the construction and operation of projects. In fact, the failure rate of Chinese enterprises' investment along the "the Belt and Road" is high. In the first half of 2016 alone, projects terminated through external mergers and acquisitions involved nearly $20 billion in funds, accounting for nearly 70% of the total amount of external mergers and acquisitions. By the first half of 2017, 15 countries and regions had initiated 37 trade remedy investigations against Chinese products, including 4 anti subsidy cases, 28 anti-dumping cases, and 5 safeguard measures, involving a total of $5.3 billion in funds. Although the number and amount of trade remedy investigations in China have decreased compared to the same period in 2016, they are still at a relatively high level. Therefore, it is urgent to strengthen investment risk assessment and improve evaluation mechanisms.

We should be cautious in preventing political security risks. Compared with the major overseas investment destinations of Chinese enterprises such as the United States, Canada and Australia, some countries along the "the Belt and Road" have higher political risks. Most countries along the "the Belt and Road" belong to developing countries, with low economic development and industrialization. Many countries have poor sovereign credit status, with national sovereign credit at CCC-B level. In the South Asian region, security issues are prominent in the construction of the China Pakistan Economic Corridor. In recent years, China's infrastructure construction projects and Chinese employees have become direct targets of attacks by some religious extremist organizations, especially Baloch armed groups. As the China Pakistan Economic Corridor project continues to advance, the number of Chinese citizens traveling to the region is gradually increasing, and Chinese projects and citizens will face more severe security risks. In Southeast Asia, some potential political risks may impact China's construction projects and economic and trade cooperation. For example, the insufficient cumulative gas transmission capacity of the highly anticipated China Myanmar natural gas pipeline is not unrelated to the conflict in northern Myanmar. Myanmar is undergoing a process of democratization, and the conflict in the northern region of Myanmar may have a potential negative impact on China's projects in Myanmar. In Central Asia, security issues still deserve attention, such as poverty leading to increased social conflicts in some Central Asian countries. Among them, Tajikistan stands out as a country with extremely high political and security risks. Tajikistan is located near Afghanistan and is susceptible to the impact of the Afghan situation. In addition, some Central Asian countries have fragile relationships, such as the friction between Kyrgyzstan and Kazakhstan over the presidential election in Kyrgyzstan. Therefore, this will bring challenges to the cooperation and development of the "the Belt and Road" Eurasia region.