China vs. US: Infrastructure Race in Asia/Pacific Opening Global Cement Industry to New Markets
CLEVELAND, July 26, 2019 /PRNewswire/ -- The ongoing tech trade war between China and the US has another major dimension to it: The global economic leaders are competing to secure early footholds in emerging Asia/Pacific economies by leading investment in local infrastructure and other elements key to development. Despite escalated tensions between Beijing and Washington, global suppliers of construction materials such as cement will find benefits on both sides. Global Cement – a new study from the Freedonia Group – details where the strongest opportunities lie.
A link to the study is here: https://www.freedoniagroup.com/industry-study/global-cement-3699.htm
China: Belt & Road Action Plan to usher in "new era of globalization"
The Freedonia Group projects that the Chinese market for cement will contract through 2023 after years of robust gains driven by breakneck economic expansion, which saw among other unusual activities construction of new cities from the ground up.
Nevertheless, China's new Silk Road project – also known as the Belt and Road Action Plan – will pump nearly a trillion dollars into new roads, bridges, and other infrastructure throughout the region in the coming years, with the goal of creating higher-efficiency trade routes to Africa, Europe, and beyond – while fueling economic expansion throughout the Asia/Pacific.
US: Indo-Pacific Strategy to curb geopolitical threat of new Silk Road
The US counter to China's plan for the Asia/Pacific was laid out in a June 2019 report by the Department of Defense, which warned would-be international partners on the new Silk Road project to be wary of China's purportedly altruistic motives in driving regional expansion. The US "does not oppose China's investment activities," per the report, but "has serious concerns" about China's potential to leverage the resulting debts to encroach on the sovereignty of its impoverished neighbors.
Called the Indo-Pacific Strategy, the plan involves a multilateral approach – including increasing investment – to strengthen relationships with the US' strongest regional allies, such as New Zealand, Singapore, and Taiwan, while expanding relationships with others, like Indonesia, Malaysia, and Vietnam.
Allies see benefit in playing both sides
Recent developments indicate that the US' upper hand over China may be slipping on the global stage, with the two superpowers increasingly being viewed as economic equals. For example:
- Italy struck a deal in March 2019 to join China's new Silk Road project, justifying the agreement as an act of European leadership despite disappointment from the US and other EU members.
- Japan's long-term investment in the region and relative neutrality in the ongoing US-China conflict has made it an attractive partner for both China and the US. In fact, Japan maintains infrastructure development agreements under the US' Indo-Pacific Strategy in addition to its commitments to China for a growing list of similar projects.
Looking for More?
The new Freedonia Group study Global Cement analyzes the global market for cement by product, market, end user, and major region. Historical data and demand forecasts are presented in metric tons. International production, pricing, and trade trends are also provided, as are in-depth profiles of leading industry participants including market share, recent restructuring activity, and key product innovations.
Additional studies covering construction industry trends are available from Freedonia's Construction & Building Products research group.
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
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