Steel for the Silk Road: China's Wire and Tube Industry in the Context of the Belt and Road Initiative

The Belt and Road Initiative, also known as the New Silk Road, is far more than just a gigantic infrastructure programme — it is China's geopolitical and economic vision for the 21st century. The project comprises two main strands: the land-based Silk Road Economic Belt, running through Central Asia to Europe, and the Maritime Silk Road, extending across Southeast Asia and the Indian Ocean to East Africa. 

Since the initiative's launch, China has already invested an estimated 1 trillion US dollars. Long-term projections point to a total volume of up to 8 trillion US dollars by 2049. These investments flow primarily into: 

• Railway networks: High-speed lines and freight corridors connecting entire continents 

• Energy pipelines: Gas and oil pipelines to Central Asia and the Middle East to secure China's energy supply 

• Port infrastructure: Modernisation and new construction of seaports along the Maritime Silk Road 

• Road networks: Motorways and cross-border connections for overland transport 

• Industrial parks: Special economic zones to promote local production and value creation 

Each of these projects requires vast quantities of steel, wire products and tubes. The China-Pakistan Economic Corridor (CPEC) alone, with an estimated volume of 62 billion US dollars, is the BRI's largest single project and impressively demonstrates the scale involved: thousands of kilometres of new roads and railways are planned, along with ports on the Arabian Sea and a comprehensive expansion of the energy infrastructure linking Pakistan with China's interior. 

Top BRI Investment Recipients and Export Markets 

The geographic distribution of BRI investments shows clear areas of focus. In the first half of 2023, the top 10 recipient countries for Chinese BRI investments were simultaneously the markets with the highest growth rates in steel imports from China: 

Source: China General Administration of Customs, China Ministry of Commerce 

These figures illustrate the direct correlation between BRI investments and steel exports. Particularly noteworthy is the explosive growth in Laos (+196.7%), where the China-Laos Railway — a 414-kilometre high-speed line — is consuming massive quantities of steel. The project forms part of the larger pan-Asian railway network intended to connect China with Thailand, Malaysia and ultimately Singapore. The line opened at the end of 2021 and already carries over one million passengers as well as significant freight volumes. 

The Wire Industry: Networking the Silk Road 

Wire products are the nervous system of modern infrastructure. From high-voltage power lines to telecommunications cables and reinforcing steel for concrete structures — none of the BRI's ambitious projects could be realised without wire and cable. China has massively expanded and modernised its wire industry in recent years to meet this demand: 

• High-performance cables for energy transmission: BRI projects require thousands of kilometres of new power lines. China is increasingly relying on high-voltage direct current (HVDC) transmission, which minimises losses over long distances. Projects such as the power lines from the Three Gorges Dam to the coastal cities have demonstrated China's mastery of this technology — the country is now exporting it via the BRI. 

• Fibre-optic cables for telecommunications: The Digital Silk Road is an integral component of the BRI. China is investing heavily in expanding digital infrastructure in partner countries, from 5G networks in Pakistan to data centres in East Africa. Chinese telecoms giant Huawei is a key player, supplying not only network equipment but also the associated fibre-optic cables. 

• Reinforcing steel and prestressing wire: High-strength steel wires are indispensable for bridges, tunnels and above-ground structures. The BRI encompasses spectacular engineering works such as the Padma Bridge in Bangladesh (6.15 km) and the planned China-Nepal Railway Tunnel through the Himalayas. Such projects require specialist wires capable of withstanding extreme loads. 

• Automotive wiring: China is the world's largest car market, and the BRI is opening up new export markets. Chinese automakers such as BYD, Geely and SAIC are expanding aggressively into BRI countries. With them comes demand for wiring harnesses for electric vehicles — a segment in which China has now become a global technology leader. 

• Wire drawing machines and precision equipment: State-of-the-art technology for the production of high-quality wire is another key focus. European and Japanese machinery manufacturers present their latest developments at Wire China, while Chinese manufacturers are increasingly producing their own competitive equipment. 

Energy Infrastructure: The Backbone of the Silk Road 

A core element of the BRI is the construction of cross-border energy networks. China is planning and implementing extensive power transmission projects that transport renewable energy from wind- and sun-rich regions to consumption centres. These projects require high-voltage cables on a scale never seen before. 

One example is the Central Asia–South Asia (CASA-1000) Electricity Transmission Project, which channels hydropower from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. The 1,222-kilometre high-voltage line with a capacity of 1,300 MW is set to be fully operational by 2025. Such projects consume not only thousands of tonnes of copper and aluminium cable, but also steel cables for pylons and reinforcing steel for foundations. 

Another ambitious project is the Desertec-like vision for Central Asia: China plans to transport solar energy from the deserts of Kazakhstan and Mongolia over thousands of kilometres to eastern China. Technical feasibility has already been proven through domestic HVDC projects; the technology is now to be deployed across borders. 

Chinese wire producers have established themselves as preferred suppliers, not only due to their price competitiveness, but also on account of established supply relationships and the application of Chinese construction standards on many BRI projects. Chinese construction companies often purchase materials directly from domestic manufacturers — an advantage that is impressively reflected in the export statistics. 

The Tube Industry: Arteries for Oil, Gas and Water 

If wire is the nervous system of the BRI, then tubes are its arteries. Pipelines transport energy, water and raw materials over thousands of kilometres and are indispensable for the economic development of BRI countries. China has strategically expanded its tube industry to meet this enormous demand. 

Pipeline Projects: The China-Pakistan Economic Corridor 

CPEC is the BRI's flagship project with a total estimated volume of 62 billion US dollars. In addition to roads, railways and ports, the project also encompasses extensive energy infrastructure: 

• The Gwadar Port Pipeline: A planned oil and gas pipeline from the port of Gwadar on the Arabian Sea through Pakistan to the Chinese province of Xinjiang. This strategically important pipeline would enable China to import oil from the Middle East without passing through the Strait of Malacca — a maritime chokepoint that China regards as a security risk. 

• LNG terminals and pipelines: Several liquefied natural gas terminals are being built along the Pakistani coast to alleviate Pakistan's chronic energy shortages. These include terminals at Port Qasim and Gwadar, as well as a network of pipelines into the interior. China is supplying not only the tubes but also the technical expertise for construction and operation. 

• Water management projects: Dams, irrigation systems and water pipelines for the arid regions of Balochistan also form part of CPEC. The Diamer-Bhasha Dam on the Indus is being built with Chinese financing and requires hundreds of thousands of tonnes of steel pipes for pressure conduits and turbine systems. 

These projects require hundreds of thousands of tonnes of tubes across the widest range of specifications — from large-diameter oil and gas pipelines (up to 56 inches in diameter) to medium-sized water pipelines and small precision tubes for industrial plant. Chinese manufacturers dominate the supply contracts, as they offer not only competitive prices but also the capacity for rapid delivery of large volumes. 

Opportunities for International Companies 

Chinese manufacturers are seeking advanced technologies for energy-efficient production, quality control and automation. Wire China and Tube China are ideal platforms for presenting these technologies and winning contracts. 

Many Chinese companies are interested in joint ventures with international technology leaders in order to gain access to cutting-edge technologies and international markets. At the same time, Western firms can benefit from China's low production costs and established supply chains. 

Through cooperation with Chinese companies, Western firms can gain indirect access to BRI projects. Chinese construction companies prefer domestic suppliers but are open to technologically superior products where these offer a clear added value. 

European specialty steel manufacturers can, for example, supply high-strength reinforcing steels or corrosion-resistant tubes for demanding BRI projects. German companies such as Salzgitter, or Austrian ones such as Voestalpine, have good niche opportunities here. 

Western engineering firms and consulting companies can contribute their expertise in areas such as project management, quality assurance, environmental impact assessments and financing strategies. 

Conclusion 

The Belt and Road Initiative is more than just an infrastructure programme — it is China's vision for a new world order of the 21st century. With investments of potentially up to 8 trillion — that is, 8,000 billion — US dollars over the coming decades, the BRI is creating demand for steel, wire and tubes that is unprecedented in history. 

China's wire and tube industry has positioned itself perfectly to benefit from this boom. The combination of low production costs, massive production capacities, established supply relationships and the application of Chinese standards on BRI projects gives Chinese manufacturers a competitive advantage that is almost impossible to close. 

That said, it remains true that Chinese companies have a broad need for specialist know-how that — outside Japan or Korea — exists only in Europe. The Wire China and Tube China trade fairs in September 2026 in Shanghai are crucial platforms for all those who wish to succeed in this dynamic market. They offer not only access to China's booming industry, but also insights into the future development of global steel, wire and tube markets. 

At a time when the European steel industry is grappling with overcapacity, high energy costs and the pressure to decarbonise, collaboration with China could hold both opportunities and risks. European companies must decide strategically whether they wish to act as technology providers, as partners or as competitors. 

Regardless, one thing is certain: the future of global infrastructure will, to a considerable extent, be planned, financed and built in China. Those who wish to succeed in this new world order must understand the inherent dynamics of the BRI and make the right strategic decisions. 

The Belt and Road Initiative is not a short-term project but a long-term strategic vision spanning decades. For the steel, wire and tube industry, this means persistently high demand, driven by infrastructure projects in dozens of countries across three continents. 

With the BRI, China has redefined the rules of global trade. While Western nations rely on multilateral institutions and free markets, China is pursuing a state-directed strategy that interweaves trade, infrastructure and geopolitical influence. The wire and tube industry is a central element of this — as the material foundation of the new Silk Road. 

For more on the wire and tube industry in China and worldwide, visit wire & Tube, taking place from 13 to 17 April 2026 in Düsseldorf. For the Asian perspective, visit Wire China and Tube China from 21 to 24 September 2026 in Shanghai. Current industry and product information is available at www.wire-tradefair.com, www.wirechina.net and www.tubechina.net. 

Further Information and Sources 

• Council on Foreign Relations – China's Belt and Road Initiative: www.cfr.org/backgrounders/chinas-massive-belt-and-road-initiative 

• AidData – Delivering the Belt and Road: docs.aiddata.org/reports/delivering-the-belt-and-road.html 

• Center for Strategic and International Studies – China Belt and Road Initiative: chinapower.csis.org/china-belt-and-road-initiative 

• Lowy Institute – Understanding China's Belt and Road Initiative: www.lowyinstitute.org/publications/understanding-china-s-belt-road-initiative 

• S&P Global – BRI Steel Demand from Key Countries: www.spglobal.com/energy/en/news-research/blog/metals/011924-bri-steel-demand-from-key-countries-echoes-surge-in-chinese-exports 

• World Steel Association – Statistics and Trends: worldsteel.org/data 

• China General Administration of Customs – Trade Statistics: english.customs.gov.cn 

• Statista – China Steel Industry: www.statista.com/topics/5695/steel-industry-in-china 

• China Steel Industry Association: www.cncscs.cn 

• Shanghai Metal Corporation – Belt and Road Initiative and Steel Industry: www.shanghaimetal.com/8648-8648.htm 

• Metal.com – Stories about the Belt and Road Initiative and the Steel Industry: news.metal.com/newscontent/102434702 

• PBS NewsHour – How Belt and Road is Building China's Global Influence: www.pbs.org/newshour/show/how-historic-belt-and-road-infrastructure-project-is-building-chinas-global-influence 

• Pulitzer Center – China's Belt and Road Initiative Builds Global Infrastructure: pulitzercenter.org/stories/chinas-massive-belt-and-road-initiative-builds-global-infrastructure-and-influence 

• Wire China: www.wirechina.net/en 

• Tube China: www.tubechina.net/en 

• wire & Tube Düsseldorf: www.wire-tradefair.com