Often described as China’s 21st-century version of the ancient Silk Road, the Belt and Road Initiative (BRI) is a central aspect of China’s emerging foreign policy aimed at counterbalancing US influence in global affairs. Launched by President Jinping in 2013, the BRI comprises various infrastructure and investment projects across the globe seeking to strengthen global trade and improve regional connectivity.
At its core, the BRI is an umbrella term encompassing an array of smaller projects which amalgamate into a vast global development strategy to build a wider global infrastructure network including railways, highways, ports, airports and telecommunications. It can be divided into two primary components: the “Silk Road Economic Belt,” which refers to overland routes connecting China with Europe through Central Asia, and the “21st-century maritime route,” which involves sea routes linking China to Southeast Asia, the Middle East and Europe.
Through these projects, China aims to foster trade, improve global supply chains and create an interconnected network of countries for mutual economic growth. Whilst the BRI will undoubtedly be hugely beneficial for China’s economy, it will also be valuable to the 140 other countries involved in the initiative, where underdeveloped regions will experience an influx of Chinese investment and fortified trade links. The initiative, however, is not solely about economics; China aims to project its influence across continents through the strategic placement of infrastructure and building rapport with a host of nations.
Funding for the various BRI projects has been largely through loans and investments. Many Chinese banks, including the China Development Bank and the Export-Import Bank of China, have been key sources of financing, whilst Chinese-owned enterprises act as project implementers. Host countries often accept Chinese loans for the development of infrastructure ranging from transportation systems to power plants and 5G networks.
China’s motivation for launching the BRI, which appears to be a philanthropic global initiative, is multi-faceted. On the one hand, China is seeking to open new markets for its goods, as its traditional export markets, such as the USA and Europe, have grown increasingly saturated and have imposed harsh tariffs. The BRI offers new opportunities for trade and investment, particularly in regions crucial to fueling the rapid expansion of China’s economy like the Middle East which supplies 47% of China’s oil imports. On the other hand, the BRI reflects China’s broader aspirations of becoming a global superpower. Through financing infrastructure projects and cultivating economic dependence, China strives to establish itself as a leader in international development. In parallel, China is pursuing a strategy intended to counterbalance the Western-dominated international order by offering alternatives to global institutions like the World Bank and the International Monetary Fund where it has traditionally held less sway.
Despite its grand ambitions, the BRI has attracted fierce criticism over the issue of debt-trap diplomacy. By offering loans to countries that evidently cannot afford them, China pushes them into unsustainable debt levels that can distract them from pressing social and economic issues. When a country is unable to repay its loans, China may seize strategic assets such as land, ports or other infrastructure as collateral, thereby increasing its influence in those regions. A notorious example of this happening is the Sri Lankan port of Hambantota which a Chinese company took control over on a 99-year lease following Sri Lanka’s inability to service its debt. Some argue that China deliberately engages in this in order to gain authority in these countries whilst others assert that it inadvertently arises from the risks of loaning to an economically unstable country. Another issue is the environmental and social impact of many BRI projects; large-scale infrastructure projects can often lead to the displacement of communities, loss of livelihoods and significant environmental degradation. The latter is particularly pertinent in the case of emerging economies where sustainability and environmental protection are often peripheral to the more urgent goals of economic and social development. Despite this, it offers a range of opportunities for development and economic integration as well as facilitating a more interconnected world with further cooperation on matters of global significance.
Written by Rakan Pharaon
