Belt and Road Initiative needs good laws

Since its introduction by Chinese President Xi Jinping in 2013, the Belt and Road Initiative (the Silk Road Economic Belt and the 21st Century Maritime Silk Road) - an ambitious plan to revitalize the ancient Silk Road overland and maritime trade routes linking East and West - has attracted considerable attention. And for good reason: The project, which involves more than 60 countries and quite a few international organizations, implies unprecedented opportunities - and challenges.

From China's perspective, the logic behind the strategy is clear. With its sources of GDP growth coming under increasing strain, China must continue to make progress in opening-up the economy. That means building mutually beneficial relationships with neighboring countries, which can benefit by taking over some of China's lower-value-added activities. That promises to boost their own growth while creating space for the Chinese economy to move up the value chain, where productivity and wages - important determinants of consumption - are higher.

China's comparative advantages, including a global financial center in Hong Kong and a regional financial center in Shanghai, reinforce its leadership role. Add to that the recent surge in fast-growing, innovative companies - such as Huawei, Alibaba, and Wanda - and China is well placed to implement Xi's grand vision.