China’s construction sector will benefit from the Belt and Road Initiative (BRI) in the next decade, according to Robin Xu, head of Asia industrials research at UBS Investment Research.

Chinese construction firms have a large share of the international contracting market for electricity, water supply, and transport, Shanghai-based Yicai Global news service reported, citing Xu.

Major Chinese cement makers plan to expand their capacity in countries along the BRI route, he said, adding UBS predicts higher steel exports to these countries will reduce the overcapacity in China.

Chinese contractors made $85 billion in revenue in BRI countries last year and inked new contracts worth $130 million, accounting for 55 percent of their total overseas income and 51 percent of new contracts inked overseas, respectively, the news report said.

(Writing by P Deol; Editing by Anoop Menon)