Accounting perspective on One Belt One Road
The One Belt One Road (OBOR) is an initiative focusing on increasing connectivity to enhance trade flows and gain mutual benefits and economic growth through cooperation along belt road countries. The idea behind is to develop better infrastructure for trade and promote the bilateral development of key investment projects along belt road countries. Chinese investment in the UK has grown from $9.2 billion in 2016 to $20.8 billion in 2017. The OBOR initiative aligns with several basic policies highlighted in the 19th CPC National Congress reports, including the basic policy that promotes the building of a community with a shared future for mankind.
The OBOR Initiative provides lots of opportunities for accounting, finance and legal services due to the differences in the accounting system and legal requirements along belt road countries. Harmonisation of the accounting system to facilitate trade and financial integration, as well as coordination of accounting, taxation and finance policies among the relevant agencies are vital. Some accounting and legal firms are beginning to take a leadership position to attract new clients and partners to increase their roles in Belt and Road projects. Further, towards economic globalisation, interconnectivity is important in infrastructure development but also in communication and people-to-people exchange. All stakeholders including professionals, the state-owned enterprises and private companies should work together to achieve a ‘win-win’ approach under the belt road initiative.