China currently spends around 9 percent of its GDP on both domestic and foreign projects. Back in December, China has the most extensive network of high-speed rail in the world—approximately 7,000 miles’ worth, all told—with thousands more miles of track under construction. This will require untold amounts of natural resources.
And with China’s grand “One Road, One Belt” initiative underway, even more resources will be needed. The strategy, which harkens back to the famed Silk Road, is intended to open up new trade routes to Southeast Asia, the Middle East and Eastern Europe.
The flagship project of One Road, One Belt is the China Pakistan Economic Corridor, an elaborate series of roads, rail and pipeline that will cut lengthwise through Pakistan, giving China convenient access to ports on the Arabian Sea. Along the way, several energy projects are slated to be built.
If everything goes according to plan, the entire 2,000-mile corridor, expected to take 15 years to complete, should come in at around $46 billion, making it one of the most expensive infrastructure projects in human history.
It’s certainly the most China will have ever spent in another country. If you recall, it’s now investing more money outside its borders than it is domestically, having exceeded $100 billion for the first time in 2014. The country is investing so heavily in Africa, in fact, that some economists have nicknamed it “China’s Second Continent.”
Here’s hoping China sees huge returns on their investment.