Current Affairs

General Studies Prelims

General Studies (Mains)

China’s Belt and Road Initiative Investments Drop 5%

The Belt and Road Initiative (BRI) is a multi-billion-dollar endeavor launched by China in 2013. The primary aim of this initiative is to link Southeast Asia, Central Asia, the Gulf region, Africa, and Europe with a network of interconnected land and sea routes. It’s an ambitious project meant to bolster global infrastructure, which will inevitably enhance China’s global influence. Over 100 countries have signed agreements with China to cooperate in BRI projects, which have included the development of railways, ports, highways, and other forms of infrastructure. Between 2000 to 2020, China, under BRI, has supported African countries in constructing more than 13,000 km of roads and railways, 80 large-scale power facilities, over 130 medical facilities, 45 sports venues, and over 170 schools. Moreover, China has also financed the establishment of the African Union Conference Centre.

Activities under BRI: A Closer Examination

BRI encompasses five areas of focus: policy coordination, trade promotion, physical connectivity, Renminbi internationalization (China’s currency), and fostering people-to-people connections. It has two main routes: The New Silk Road Economic Belt, which aims to create trade and investment hubs to the north of China while reaching out to Eurasia, including a link via Myanmar to India; and the Maritime Silk Road (MSR) that begins through the South China Sea, goes towards Indo-China and Southeast Asia, rounds the Indian Ocean, and reaches Africa and Europe.

BRI’s Global Impact: Concerns for India and the World

While the BRI brings plenty of economic opportunities, it also raises several concerns, especially for India. The China-Pakistan Economic Corridor (CPEC), part of the BRI, passes through contested areas like Pakistan-occupied Kashmir (PoK) and Baluchistan, potentially undermining India’s strategic interests in the South Asian region. Also, China’s development of the China-Nepal Economic Corridor (CNEC) linking Tibet to Nepal could signify its strategic rise in the Indian subcontinent. Furthermore, the lack of transparency in BRI agreements and mounting debt to China by smaller countries have raised global apprehensions.

Countering the BRI: Global Initiatives

In response to the growing influence of BRI, several alternative initiatives have been launched. One such initiative is the Build Back Better World (B3W), proposed by the G7 countries at the 47th G7 summit. The objective of B3W is to fill the infrastructure investment deficit in developing and lower-income countries, a space increasingly captured by China.

There’s also the Blue Dot Network (BDN), an initiative formed by the US, Japan, and Australia. It assembles governments, the private sector, and civil society to encourage high-quality, trusted standards for global infrastructure development. BDN was formally announced in November 2019 at the Indo-Pacific Business Forum in Bangkok, Thailand.

The European Union has launched the Global Gateway as well, an infrastructure development scheme designed to compete with the BRI.

The Way Forward: A Collaborative Approach

For countering China’s BRI, advanced countries should launch alternative projects that are participatory in nature, taking into account the interests of the host/recipient countries. To build and upgrade its own infrastructure, India should consider collaboration with partners like Japan and create alternatives to Chinese-led connectivity corridors and infrastructure projects. As such, it’s crucial for India to work with its regional partners in offering alternative connectivity arrangements to its neighbors. As connectivity continues to be a tool for exerting foreign policy influence, such collaborative endeavors will be indispensable.

Leave a Reply

Your email address will not be published. Required fields are marked *

Archives