What the Digital Silk Road and McDonald’s have in common

Paul Triolo, a leading US-based China tech analyst, compares the structure of the DSR to the groundbreaking business model of McDonald’s: In a word — it’s about franchising. China’s publicly traded tech giants establish technological outposts or “franchises” that receive political, financial, and branding benefits under the DSR marketing umbrella from the state, which China’s competitors claim tilts the playing field against other international players.

The digital heart of China’s Belt and Road

China’s Belt & Road Initiative (BRI) was announced by President Xi Jinping in 2013. It’s an ambitious plan to rebuild the land (belt) and maritime (road) trade routes of the ancient silk trade routes, extending throughout the developing world from central Asia to the Middle East, and to Latin America and the Caribbean. To date, 137 countries have signed onto the program. All in, BRI is estimated to be a trillion-dollar infrastructure build, but the BRI is already showing signs of shifting global trade flows.

As the signature foreign policy of President Xi, activities to advance the BRI are a top priority across Chinese government and business sector. The Digital Silk Road is a key part of the BRI vision. So far, 30 countries have MOUs with China for DSR projects – spanning from Laos up to Kazakhstan, across to Egypt, Saudi Arabia, and the UAE and stretching to Peru and the Dominican Republic.