China’s Belt and Road Initiative (BRI) is an ambitious global infrastructure and investment project aimed at connecting China with the rest of the world. Celebrating its 10th anniversary, the BRI has garnered both praise and criticism for its transformative impact. While China boasts about its achievements in transforming the global economic landscape, there are concerns about the long-term consequences and potential risks associated with the project.
The BRI, with its overland routes and maritime networks, aims to increase connectivity between China and Europe, South Asia, Southeast Asia, Africa, and the Middle East. The focus has been on investments in energy and transport infrastructure, such as power plants, railways, pipelines, and ports. China has poured an estimated $1 trillion into nearly 150 countries, leading to significant economic benefits in terms of trade and access to resources.
China’s diversification of trade partners has reduced its dependence on the West, particularly in sectors like soybeans and energy imports. This shift has become crucial considering the growing tensions between China and the US and its allies. However, as China becomes the world’s largest international creditor, there are concerns about the scale of BRI-related debt. The exact amount is unknown due to secrecy surrounding loan agreements, but it is believed to be in the hundreds of billions of dollars.
Many countries, including Sri Lanka, the Maldives, Laos, and Kenya, are struggling with BRI debt, which has raised questions about China’s lending practices and potential debt trap diplomacy. Critics argue that China lures poorer countries into expensive projects and eventually seizes control of the assets put up as collateral. The lack of transparency surrounding borrowing institutions’ exposure to China’s hidden debts makes it difficult for countries to evaluate the costs and benefits of participating in the BRI.
In addition to debt concerns, there have been criticisms about wasteful infrastructure projects, corruption, environmental problems, labor rights violations, and unfulfilled promises of job creation and prosperity. Some countries, such as Malaysia and Tanzania, have even canceled BRI deals due to these issues. However, it is important to note that both Chinese lenders and borrowing countries share responsibility for these challenges.
Despite these drawbacks, China has successfully extended its influence through the BRI. It has positioned itself as a leader in the Global South, offering scholarships, cultural exchange programs, and economic partnerships. China’s soft power initiatives and economic cooperation have resulted in favorable attitudes towards China in many middle-income countries. The BRI has also played a role in China’s diplomatic isolation of Taiwan, as many nations that have shifted recognition to China in the past decade are BRI funding recipients.
Critics raise concerns about possible economic coercion, as some contract clauses potentially allow lenders to influence debtors’ domestic and foreign policies. China’s involvement in opposing measures critical of Beijing in international forums and its ability to influence the policies of countries participating in the BRI have been observed. While China has taken steps to address some of the criticisms by promoting low-investment, high-yield projects and focusing on digital infrastructure, there are still questions about the long-term sustainability and inclusiveness of the BRI.
China’s grand vision of a fairer, more inclusive global order through the BRI may face challenges in gaining global acceptance. As the BRI continues to evolve, it is important for participating countries to carefully assess the associated risks and benefits. Transparency, accountability, and mutual cooperation will be key in ensuring that the BRI delivers on its promises while safeguarding the interests of all parties involved.
