Title: Belt and Road Initiative: building or buying a New Silk Road?

Authors: Francisco J. Valderrey; Federico Trigos; Evodio Kaltenecker

Addresses: Tecnologico de Monterrey, Avda Garza Sada S/N, Col. Cerro Gordo, Guanajuato, Mexico ' Tecnologico de Monterrey, Avda Garza Sada S/N, Col. Cerro Gordo, Guanajuato, Mexico ' Tecnologico de Monterrey, Avda Garza Sada S/N, Col. Cerro Gordo, Guanajuato, Mexico

Abstract: The Belt and Road Initiative, also known as the New Silk Road, has been the main project for China in the international arena during the last decade. Despite the many achievements, there is growing skepticism about its future. Therefore, we examine the initiative from a specific angle, studying outward foreign direct investment from Chinese enterprises along a general area covering different continents. We analyse two main entry modes in global markets: greenfield investment and mergers and acquisitions. Additionally, we focus on the energy, finance and transportation sectors. We compare data sets from the China Global Investment Tracker to show that M&A is the preferred entry mode in most significant projects, thus questioning a widespread perception of the BRI as a series of greenfield investments from Chinese enterprises. Finally, we look at factors of interest to international managers before concluding that China is simultaneously building and buying a New Silk Road.

Keywords: Belt and Road Initiative; China; COVID-19; greenfield investment; merger and acquisition; outward foreign direct investment.

DOI: 10.1504/EJIM.2025.150039

European Journal of International Management, 2025 Vol.27 No.4, pp.533 - 565

Received: 31 Dec 2021
Accepted: 02 Sep 2022
Published online: 22 Nov 2025 *

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