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Zawya
a day ago
- Business
- 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) (
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First Post
06-07-2025
- Business
- First Post
Overseas mining acquisitions by Chinese firms at highest level in over a decade; here's why
China's immense demand for raw materials as the world's top consumer of most key minerals. It has long driven its firms to pursue assets abroad read more A mining machine is seen at the Bayan Obo mine containing rare earth minerals, in Inner Mongolia, China. File photo/Reuters Chinese mining companies have stepped up acquisitions abroad, reaching their highest level in more than a decade as they seek to secure vital raw materials amid rising geopolitical tensions. There were 10 overseas mining deals by Chinese firms worth more than $100 million in 2023, the most since 2013, according to an analysis of data from S&P and Mergermarket. Separate research from the Griffith Asia Institute also found that last year marked the busiest period for Chinese overseas mining investment and construction since at least 2013. STORY CONTINUES BELOW THIS AD China's immense demand for raw materials as the world's top consumer of most key minerals. It has long driven its firms to pursue assets abroad. Analysts say the recent rise in dealmaking reflects efforts by Chinese groups to accelerate acquisitions before global political tensions restrict such activity, Financial Times reported. Michael Scherb, founder of private equity firm Appian Capital Advisory, said there had been 'more activity in the past 12 months because Chinese groups believe they have this near-term window … They're trying to get a lot of M&A done before geopolitics get difficult.' The momentum has continued into 2024. Zijin Mining of China recently announced a $1.2 billion deal to acquire a gold mine in Kazakhstan, while in April, Appian sold its Mineração Vale Verde copper and gold mine in Brazil to Baiyin Nonferrous Group for $420 million. 'In the next few years we are likely to continue to see a healthy level of dealmaking activity from Chinese mining companies,' said Richard Horrocks-Taylor, global head of metals and mining at Standard Chartered. Christoph Nedopil, director of the Griffith Asia Institute and a specialist in Chinese overseas investment, said that unlike transport and infrastructure projects under the Belt and Road Initiative — which have tended to be smaller — mining and resource deals have remained substantial. He said this shift aligns with China's emphasis on high-tech manufacturing, particularly in sectors such as batteries and renewable energy. STORY CONTINUES BELOW THIS AD China maintains a dominant position in processing critical minerals such as lithium, cobalt and rare earths, but still depends on imports for many raw materials. The United States and several European nations are working to reduce reliance on Chinese supply chains for these materials, which are vital for electric vehicles, semiconductors and green technologies. Western countries including Canada and Australia have grown 'increasingly wary' of Chinese investment in domestic mining operations due to the 'strategic nature of a lot of these minerals,' said Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence. Analysts say Chinese firms have grown more adept at acquiring mining assets from western rivals, often willing to take longer-term views on value and invest in riskier locations. 'There has been a [growing] sophistication of Chinese buyers' outbound M&A strategies,' said Scherb. 'The Chinese government used to select one buyer per asset sale process and back that group. What's evolved over the past three to four years is the government allowing Chinese groups to compete with one another. That implies they don't fear losing to the west anymore.' STORY CONTINUES BELOW THIS AD John Meyer, an analyst at SP Angel, said Chinese groups were 'actively' acquiring resources 'to keep the west out of certain critical materials which they dominate'. He added, 'Every time someone gets close to mining lithium, the Chinese come running with a cheque book.' Among the most active players in overseas deals are CMOC, MMG and Zijin Mining. Meanwhile, Chinese financial institutions have issued billions of dollars in loans for mining and mineral processing projects in developing countries. Timothy Foden, co-head of the international arbitration group at law firm Boies Schiller Flexner, said Chinese firms were also benefiting from a rise in resource nationalism, particularly in African countries such as Mali. Some military-led governments have taken over western-owned mining assets and demanded increased royalties. Chinese companies are often willing to accept lower returns in exchange for operating control of such assets, Foden said.
AU Financial Review
06-07-2025
- Business
- AU Financial Review
China snaps up mines around the world in rush to secure resources
London/Shanghai | Chinese mining acquisitions overseas have hit their highest level in more than a decade as companies race to secure the raw materials that underpin the global economy in the face of mounting geopolitical tension. There were 10 deals worth more than $US100 million last year – the highest since 2013, according to an analysis of S&P and Mergermarket data. Separate research by the Griffith Asia Institute found that last year was the most active for Chinese overseas mining investment and construction since at least 2013.
ABC News
23-05-2025
- Politics
- ABC News
Australia's foreign minister wraps up Pacific tour
Over the past week, Australia's Foreign Minister Penny Wong has been on a three-nation Pacific tour visiting Fiji, Tonga, and Vanuatu. Her trip comes just two weeks after the Australian federal election, which saw the Labor party sweep back into power for a second back-to-back term. As part of her visits, Senator Wong has re-emphasised Australia's commitment to climate action in Fiji, funding health reform in Tonga and reviving a bilateral partnership with Vanuatu. Dr Tess Newton Cain, adjunct Associate Professor at the Griffith Asia Institute, said there's no denying the amount of work that's gone into building relations with the Pacific, including listening to regional concerns. 'I think it's a process, not a product. You can't kind of tick he box and say, "Okay, we've done the listening now," said Dr Cain. She said the key now is whether the Australian government can sustain the pace it set in the first term. Dr Newton Cain also expects the face representing Australia in the region to change, with Assistant Minister Matt Thistlethwaite taking up a more prominent role. 'Given everything else that's going on in the world, we may not see uh Senator Wong in the region very often.' 'So, it's good for him (Assistant Minister Thistlethwaite) to get a chance to get his feet on the ground and meet some of the people that he's going to be dealing with,' said Dr Newton Cain.
CNA
15-05-2025
- Politics
- CNA
Dr Peter Layton on Russia-Ukraine talks
Confusion surrounds Russia-Ukraine talks in Turkiye, with both sides trading insults and Russian President Putin's no-show. The Istanbul meeting is just the latest diplomatic back and forth between the warring countries. Efforts to mediate an acceptable resolution began well before Russia's invasion of 2022. We look back at the different negotiations that have taken place. CNA also speaks to Dr Peter Layton from Griffith Asia Institute at Griffith University.
