– This is the script of CNBC's news report for China's CCTV on May 15, Monday.
Welcome to CNBC Business Daily, I'm Qian Chen.
For the past weekend, hordes of foreign diplomats and business leaders gathered in Beijing for a two-day meeting about China's One Belt One Road policy.
The initiative is meant to connect Asia, Europe, the Middle East and Africa to bolster trade and development.
The scheme involves 65 countries, which together account for one-third of global GDP and 60 percent of the world's population, or 4.5 billion people, according to Oxford Economics.
An analyst told CNBC via email interview that - quote - in the long run, OBOR could boost internationalization of the renminbi by encouraging its use in both trade and financial transactions.
Now, trade representatives from many countries have expressed their willingness to be a part of the initiative. Here's what Trade Minister of Austrlia Steven Ciobo has to say.
[Steven Ciobo | Trade Minister of Australia] "And we also see that the vision that President Xi has is much bigger than that. It's not just about building infrastructure for BRI. It's also about what that might mean in terms of free trade agreements, in terms of the digital economy, in terms of environmental standards, it's a whole range of different things and so it will be important for Australian businesses to be part of that."
The policy is also seen as China's push to increase global clout, as building modern infrastructure can attract more investment and trade along the "One Belt, One Road" route.
On one hand, it could be beneficial for western China, which is less developed, as it links up with neighboring countries. And in the long run, it will help China shore up access to energy resources.
And on the other hand, the policy could boost the domestic economy with demand abroad, and might also soak up some of the overcapacity in China's heavy industry.
[PETER JOLLY, National Australia Bank Global Head of Research, Fixed Income, Currencies and Commodities (FICC)] "I will say this is also a very big boost, potential boost to global growth at a time when its probably needed. And probably a boost to the demand of commodities."
The plan aims to connect Asia, Europe, the Middle East and Africa with a vast logistics and transport network, using roads, ports, railway tracks, pipelines, airports, transnational electric grids and even fiber optic lines. So industries related to infrastructure could be beneficiaries.
However, critics also pointed out the potential challenges that OBOR could face. The assumption is that these countries will be able to pay China back, and that lenders will know how to manage credit risk. This means that if these projects fail to deliver as expected, bad debts could create a strain.
CNBC's Qian Chen, reporting from Singapore.