IEMS - Thought Leadership Brief #68

4 FALL 2022 NO.68 / THOUGHT LEADERSHIP BRIEF Read all HKUST IEMS Thought Leadership Briefs at http://iems.ust.hk/tlb T: (852) 3469 2215 E: iems@ust.hk W: http://iems.ust.hk A: Lo Ka Chung Building, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon With Support from RECOMMENDATIONS Acknowledging the kaleidoscopic complexity of the BRI illuminates the IB policy ramifications of the BRI. Every turn of the kaleidoscope moves the focus of analysis to a different actor and reveals distinct views about the opportunities and challenges that the BRI generates. The shape and scope of BRI projects are formed at the intersection between different perspectives, requiring the need of integrative thinking to determine IB policy actions and reactions. Taking the BRI host country perspective, we demonstrate that host countries are willing to embark on sustainable BRI projects that make a positive contribution to their economic, social and environmental development. Several studies show that some BRI projects have benefited the host countries in terms of transportation infrastructure, income, and job generation (Fang et al., 2021; Li & Taube, 2018; Li et al., 2022a). However, other studies have documented significant resistance against BRI projects (Balding, 2018). Further research could offer insights on how China can tweak its BRI related IB policies to foster sustainable projects that are beneficial for both their own economy and for host countries. More research is also needed to evaluate how geopolitics influences a host country’s willingness to embark on a BRI project and how it shapes IB policy actions and reactions. There is also an urgent need for more research to empirically validate the link between geopolitics and BRI related IB. Furthermore, we have very limited knowledge of how the participation of host-country firms influences the survival and success of BRI projects. Future studies that focus on the capabilities that firms need to develop to navigate these geopolitical forces and even shape the geopolitical context would offer significant practical implications. There is also a need to investigate how host countries coordinate with each other in their interactions with China on the BRI. Questions also remain about China’s reactions to B3W. Will B3W push China to reconfigure the BRI, and, if so, how? Consequently, a promising research direction is to study the resilience of BRI projects under major global and regional environmental disruptions. How can policymakers in China and participating countries improve the resilience of BRI projects under major exogenous disturbances and accelerate BRI projects’ post-disturbance recovery? How does the public sentiment towards China in a host country affect the survival of a BRI project? How do exogenous disturbances reshape the relative power status among China, BRI countries and non-BRI countries? All these research questions contribute to a better understanding of whether and how trade and investment in the context of BRI and B3W projects are conducive to sustainable growth. Reference: Li, J., Van Assche, A., Fu, X., Li, L., & Qian, G., 2022. “The Belt Road Initiative and International Business Policy: A Kaleidoscopic Perspective.” Journal of International Business Policy, Vol 5 (2): 135–151. Prof. J.T. Li is Chair Professor of Management, Lee Quo Wei Professor of Business, and Director of Center for Business Strategy and Innovation, and Institute of Advanced Studies (IAS) Senior Fellow, Hong Kong University of Science and Technology. Prof. Li is an elected Fellow of of the Academy of International Business (AIB) and an Editor of the Journal of International Business Studies, responsible for research related to strategy and policy in emerging economies. Prof. Li is an expert on global business strategy. His current research interests are in the areas of organizational learning, strategic alliances, corporate governance, innovation, and entrepreneurship, with a focus on issues related to global firms and those from emerging economies.

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