Much of the narrative on China’s Belt and Road Initiative (BRI) has been polarised…Neither of these polarised narratives seems to fully account for the complex and heterogeneous variety of activities in the BRI.
More than 75 nations participate in China’s Belt and Road Initiative, launched in 2013 to develop trade and connect Asia, Africa, the Middle East and Europe with ports, roads and railways. But some countries worry about adding to already heavy debt burdens, and some projects have become an issue in local politics. Among the most vocal critics is Malaysia’s Prime Minister Mahathir Mohamad who has warned about a new colonialism.
For many emerging economies, it is imperative to pursue a rebalancing of growth patterns, with a more active approach to managing debt and capital flows and their effects on asset prices, exchange rates, and growth. Otherwise, the dangers of unsustainable growth patterns will bring expansion to an abrupt halt.
China has increasingly been involved in mediation efforts for international conflicts, particularly along the route of its signature “Belt and Road Initiative”, but its high-profile approach has failed to produce sustainable peace results, a new report from a leading European think tank has found.
China and India’s new Great Game has reached the playing field of the original imperial power rivalry in the 19th century: Iran and Central Asia. Each of the rising giants wants to be the one to shape a new regional order. Their competition for influence continues to unfold in Indian Ocean countries like the Maldives and Sri Lanka. But they are also pressing farther west, up into the Arabian Sea, Iran and the Central Asian states.
Read Here – Nikkei Asian Review
Also Read: Rising Power Of India’s influence On China in Regional Politics
China’s ambitious plan to recreate the old Silk Road trading routes across Eurasia and Africa is facing a serious financing challenge, according to the country’s senior bankers and government researchers.
China is laying the groundwork for a new aid agency to oversee its massive – and opaque – foreign aid programmes as Beijing closes in on Washington as the world’s biggest donor. The new agency, the International Development Cooperation Agency, will answer to China’s highest executive body, the State Council, and consolidate roles that had been between divided between the ministries of commerce and foreign affairs.
As the Trump administration works out the specifics of its strategy to contain Iran, China is looking for ways to bring Iran into the global system. After the recent party congress, which cemented President Xi Jinping’s grip on power, those efforts will likely take the form of the completion of his most ambitious foreign policy plan, the One Belt, One Road (OBOR) initiative, of which Tehran will be one of the key beneficiaries.
China is quickly growing into the world’s most extensive commercial empire. By way of comparison, after World War II, the Marshall Plan provided the equivalent of $800 billion in reconstruction funds to Europe (if calculated as a percentage of today’s GDP). In the decades after the war the United States was also the world’s largest trading nation, and its largest bilateral lender to others.
China’s trillion-dollar Belt and Road Initiative could potentially transform relations with over 60 countries across Eurasia, Africa and beyond. But to bring the concept to fruition, Beijing must overcome mammoth logistical obstacles, navigate fragile political situations and placate growing regional apprehension surrounding its ambitions.
