Transcontinental ‘silk road' project gains traction
Launched at the 2023 G20 Summit in New Delhi, the IMEEC promised to revolutionise connectivity between Asia, the Middle East, and Europe through rail, ports, energy grids, and digital highways. Yet progress stalled as the Gaza conflict redirected regional focus. Now, with high-level diplomacy and technological innovation driving renewed urgency, the corridor is back on track.
'The IMEEC is not just infrastructure; it is a bridge to a multipolar world,' said a senior Indian diplomat, reflecting on recent breakthroughs. During Prime Minister Narendra Modi's US visit in February 2025, talks with President Donald Trump solidified commitments to 'accelerate tangible collaboration' and convene IMEEC partners within six months. A joint statement emphasised the corridor's role in 'future-proofing supply chains' and advancing regional security—a nod to its strategic value amid Red Sea disruptions and Suez Canal vulnerabilities.
While physical infrastructure remains critical, the corridor's digital spine is already taking shape. During Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed's visit to India in September 2024, the two nations unveiled MAITRI (Master Application for International Trade and Regulatory Interface), a unified digital platform designed to eliminate bureaucratic bottlenecks.
For businesses, the implications are vast. The corridor could slash India-Europe transit times by 40 per cent, save 30 per cent in costs, and cut carbon emissions by 22 per cent compared to traditional routes. 'This is about rewriting the rules of globalization,' said a Dubai-based logistics CEO. 'The ones who adapt fastest will win.'
'As the IMEEC moves from boardrooms to breaking earth, it embodies a world where trade is both an economic lifeline and a strategic tool. For billions across three continents, the promise is clear: faster, cleaner, and more resilient connections in an age of disruption,' said Faizal Kottikollon, chairman of UAE-India Business Council-UAE Chapter.
A statement from Indian embassy in Abu Dhabi said MAITRI integrates India's National Logistics Portal and Customs Gateway with UAE systems, creating a 'single window' for real-time data exchange. Think of it as a digital highway where cargo manifests, tariffs, and regulatory approvals flow seamlessly—cutting clearance times from days to hours. The platform also powers a Virtual Trade Corridor (VTC), expected to turbocharge bilateral trade, which already tops $85 billion.
Recently, a delegation led by Secretary, Ministry of Ports, Shipping and Waterways, T.K. Ramachandaran held discussions with the CEO of Abu Dhabi Ports, Mohamed Juma Al Shamisi. The delegation included Sunjay Sudhir, Ambassador of India to UAE, and senior officials from India.
The IMEEC's blueprint splits the corridor into two arcs: The East Corridor connects India's western ports to the UAE and Saudi Arabia via maritime routes while the North Corridor weaves through Saudi Arabia, Jordan, and Israel into Europe via rail, bypassing the Suez Canal.
The UAE-India leg is poised to break ground first, with Abu Dhabi Ports CEO Mohamed Juma Al Shamisi confirming collaboration on smart logistics hubs. Meanwhile, energy ties are deepening: a cross-border electrical grid to transmit solar power and green hydrogen projects are underway, aligning with both nations' net-zero goals.
The IMEEC's revival carries unmistakable geopolitical undertones. As China's Belt and Road Initiative ((BRI) faces scrutiny over debt diplomacy, the IMEEC offers an alternative model emphasizing sustainability and multilateralism. The corridor's focus on green energy and digital innovation has attracted EU backing, with Commission President Ursula von der Leyen calling it 'a template for 21st-century partnerships' after February 2025 talks with Modi.
Yet challenges linger. Regional tensions, funding complexities, and coordinating 12+ nations demand deft diplomacy. Critics also question whether the corridor can truly offset Suez dependence, given its reliance on Middle Eastern stability.
With a partner review meeting slated for mid-2025, stakeholders are racing to finalize financing and break ground on priority segments. The UAE-India digital and energy links serve as a proving ground, while Europe eyes rail upgrades to absorb incoming Asian trade.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
an hour ago
- Al Etihad
Trump signs order extending China tariff deadline for 90 days, official says
11 Aug 2025 23:06 WASHINGTON (REUTERS)US President Donald Trump has signed an executive order extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a White House official said.A tariff truce between Beijing and Washington had been set to expire on August 12 at 00:01 (04:01 GMT), but the Trump administration had hinted the deadline could be order prevents U.S. tariffs on Chinese goods from shooting up to 145%, with Chinese tariffs on U.S. goods set to hit 125%, rates that would have resulted in a virtual trade embargo."We'll see what happens," Trump told a press conference, when asked how he planned to extend the deadline. "They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself."Imports from China are currently subject to 30% tariffs, including a 10% base rate and 20% in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on US imports to 10%. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline.
Khaleej Times
an hour ago
- Khaleej Times
Trump extends tariff truce with China by another 90 days
U.S. President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, a White House official said on Monday with only hours to go before U.S. tariffs on Chinese goods were due to snap back to triple-digit rates. The order followed a noncommittal answer by Trump to reporters as to whether he would extend the lower tariff rates a day after he urged Beijing to quadruple its purchases of U.S. soybeans. A tariff truce between Beijing and Washington was set to expire on Tuesday at 00:01 ET (04:01 GMT). The order prevents U.S. tariffs on Chinese goods from shooting up to 145%, with Chinese tariffs on U.S. goods set to hit 125%, rates that would have resulted in a virtual trade embargo. "We'll see what happens," Trump told a press conference, when asked how he planned to extend the deadline. "They've been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself." Imports from China are currently subject to 30% tariffs, including a 10% base rate and 20% in fentanyl-related tariffs imposed by Washington in February and March. China had matched the de-escalation, lowering its rate on U.S. imports to 10%. The two sides in May announced a truce in their trade dispute after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden in late July, but did not announce an agreement to further extend the deadline. Kelly Ann Shaw, a senior White House trade official during Trump's first term and now with Akin Gump Strauss Hauer & Feld, said she expected Trump to extend the 90-day "tariff détente" for another 90 days later on Monday. "It wouldn't be a Trump-style negotiation if it didn't go right down to the wire," she said, adding Trump could also announce progress in other aspects of the economic relationship as a backdrop for granting the extension. "The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations and there's been a lot of noise about everything from soybeans to export controls to excess capacity over the weekend," she said. Ryan Majerus, a former U.S. trade official now with the King & Spalding law firm, welcomed the news. 'This will undoubtedly lower anxiety on both sides as talks continue, and as the U.S. and China work toward a framework deal in the fall. I'm certain investment commitments will factor into any potential deal, and the extension gives them more time to try and work through some of the longstanding trade concerns," he said. The White House declined to comment beyond Trump's remarks. The Treasury Department and U.S. Trade Representative's Office did not respond to requests for comment. U.S. Treasury Secretary Scott Bessent has said Washington has the makings of a deal with China and he was "optimistic" about the path forward. Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. Trump did not repeat the demand on Monday. But Washington has also been pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China.
Zawya
an hour ago
- Zawya
China's BRI investments hit $124bln in H1 2025, with Middle East in strategic focus
Chinese investments under the Belt and Road Initiative (BRI) reached a record $124 billion in the first half of 2025, with the Middle East playing a leading role in deals tied to energy transition and digital infrastructure, even as construction activity in the region saw a sharp pullback. According to the 'China Belt and Road Initiative Investment Report 2025,' produced by the Griffith Asia Institute (GAI) at Griffith University in collaboration with the Green Finance & Development Centre (GFDC) of FISF, People's Republic of China, total construction activity in the Middle East declined from the previous year. Yet, Saudi Arabia and the UAE still ranked among the top five global recipients for construction volume, securing $7.2 billion and $7 billion, respectively. 'This is a short-term shift and does not explain any trends,' said Christoph Nedopil, GFDC director and author of the report, adding that the Gulf continues to remain strategically relevant for Chinese companies, particularly as BRI investments pivot toward green energy, metals processing, and high-tech manufacturing. Record surge China's BRI activity in the first half of 2025 included $66.2 billion in construction contracts and $57.1 billion in non-financial investments — nearly matching the initiative's total for all of 2024. The surge was powered by big-ticket projects in Nigeria, Kazakhstan, and Thailand across energy, mining, and technology. 'The extreme surge in H1 2025 might be explained by a few very large deals, which might have just happened in this time,' Nedopil said. 'Overall, we have seen a growing engagement trend by China in the BRI countries over the past years.' Among the drivers, he pointed to three strategic motivations: 'A stronger desire by Chinese companies to be closer to their customers and thus invest closer to the markets where they sell their goods; a desire to de-risk trade and reduce reliance on exports from China; and a need to invest in local markets to meet local content requirements (e.g., for minerals processing).' A notable development was the growing role of private Chinese enterprises in BRI deals — a marked shift from the earlier dominance of state-led megaprojects. Companies such as Longi Green Energy, East Hope Group, and Xinfa Group led outbound investment activity, including in key Gulf economies. 'The engagement by privately owned Chinese companies in BRI countries has been rising over the past years due to their stronger global positioning as technology leaders,' Nedopil explained. 'At the same time, a number of Chinese private companies have gained relevant experience to work in more difficult economic and governance environments, which is also particularly relevant in the mining sector.' Middle East's strategic fit Despite a drop in construction activity overall, the Middle East's strategic alignment with China's BRI priorities—particularly around clean energy, resource processing, and digital infrastructure—remains strong. In Saudi Arabia, Harbin Electric signed a $1.6 billion deal to construct a gas-fired power plant. Meanwhile, Egypt secured a $700 million investment from Xinyi Glass Holding to build a solar PV glass manufacturing facility, signaling expanded cooperation in clean tech manufacturing. Energy continued to dominate Chinese BRI engagement, accounting for 35 percent of the total. While green energy investments hit a new high of $9.7 billion in H1 2025, oil and gas still outpaced renewables with over $30 billion in fossil-fuel-backed deals. One of the largest was the $20 billion Ogidigbon Gas Park in Nigeria. 'Host countries need to take their responsibility on sustainable development as seriously as Chinese investors,' Nedopil said. 'Without clear agency from host countries to attract sustainable investments, Chinese partners will likely also provide non-green engagement as long as it is legal.' Beyond construction Transport-related BRI activity continued its decline, falling to just 7.2 percent of total engagement, the lowest since the initiative's launch in 2013. In contrast, sectors like technology, manufacturing, and mining gained momentum. Chinese investments in these areas more than doubled to $23.2 billion in H1 2025, fueled by demand for electric vehicles, batteries, and green hydrogen. Among the standout deals were Longi's €7.6 billion hydrogen project in Nigeria and China Aviation Lithium Battery's $2.1 billion EV battery facility in Portugal. Metals and mining also saw record engagement. China invested $24.9 billion in the sector in H1 2025, with Kazakhstan receiving the lion's share—$12 billion for aluminium and $7.5 billion for copper. IMEC vs. BRI With the India-Middle East-Europe Economic Corridor (IMEC) gathering momentum, questions remain over whether it will challenge or complement BRI's footprint in the Gulf. 'Currently, China's engagement in most countries has become less focused on transportation compared to earlier years,' said Nedopil. 'India itself is also not a BRI country. Meanwhile, over the years, many transport corridors have been worked on in this region, not least through CAREC. While IMEC was announced in 2023, the implementation of IMEC projects will strongly depend on the ability of regional players and the US to collaborate, which at this point carries some uncertainty.' Outlook: steady and strategic Looking ahead, the report forecasts a moderation in Chinese BRI engagement in the second half of 2025. Fewer megadeals are expected, but the number of deals is likely to remain strong - especially in strategic sectors. 'For the rest of 2025, we see stabilisation of Chinese BRI engagement with a focus on BRI engagement in renewable energy, mining and new technologies,' Nedopil noted in the report. He added that 'potential future engagements remain in six project types: manufacturing in new technologies (example, batteries), renewable energy, trade-enabling infrastructure (including pipelines, roads), ICT (example, data centres), resource-backed deals (example, mining, oil, gas), and high visibility or strategic projects (example, railway, ports).' With rising geopolitical and trade uncertainties, Chinese firms are expected to further diversify and deepen their overseas footprint—particularly through the so-called 'New Three' industries: EVs, batteries, and renewable energy. 'The ability of Chinese companies to expand abroad has been shifting to more private sector companies that are engaging in investment,' said Nedopil. 'They have, over the past years, acquired the capital and the know-how how to invest in overseas markets.' (Reporting by SA Kader; Editing by Anoop Menon) (
