A boom, a bust, or just a buzzword 💤
The most ambitious infrastructure project in modern history that is designed to reroute global trade.
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China is on its way 📈
There’s a new highway stretching in Pakistan, a new rail terminal in Kazakhstan, an international seaport is recently opened in Sri Lanka and heavy construction is going on in the small country of Laos.
What’s interesting is that they’re all part of one country’s project that spans three continents and touches over 60% of the world’s population.
If you connect the dots, it is not hard to see which country it is.
This is China's Belt and Road Initiative 🧧
In 2013, Chinese President Xi Jinping announced that he will be reviving The Ancient Silk Road (which used to link China with the West, which carried goods and ideas between the two great civilizations of Rome and China. Silk went westward, and wools, gold, and silver went east) with the project called BRI. The BRI (Belt and Road Initiative) is a gigantic plan for a global network of ports, roads, railways, oil refineries, industrial parks, power plants, mines, fiber optic networks, and other infrastructure to connect China to the world. So far 60 countries have reportedly signed agreements for these projects. It is estimated that BRI will likely boost world GDP by $7.1 trillion per annum by 2040.
China v/s Western World 🦠
China is using the so-called Debt Diplomacy to expand its influence. They scout for the countries with poor economic growth, with a weak government, and try to invest in the mega infrastructure projects in their country. It looks very lucrative to the host country because to get an investment from the Western countries, IMF (International Monetary Funds), and World Bank- countries have to meet strict ethical standards but the Chinese Banks offer billions of dollars with far fewer conditions. Here is the catch- the countries would never be able to repay the loan amount plus interest to China and they are into the forever debt trap.
This is what China wants.
For Example in 2008, Sri Lanka decided to build an international seaport at Hambantota. The Sri-Lankan government collaborated with the Chinese Banks for this project. Fast Forward to 2016-17, the government was not able to repay the loan, hence they had to forcefully sign a lease deal of 99 years with China. The same goes for Pakistan, Myanmar, Laos, and many African nations.
China has signed agreements with Authoritarian governments, Military regimes, and some of the most corrupt countries in the world. It’s even affiliated with Afghanistan, Ukraine, Yemen, and Iraq.
Economic Growth- ✔️
Geo-political Influence- ✔️
Trade Control- ✔️
The Chinese government calls the initiative a bid to enhance regional connectivity and embrace a brighter future. The project has a target completion date of 2049.
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