China's 10-Year Anniversary Summit for Belt and Road Initiative

What's the story?

• China celebrated the 10-year anniversary of its trillion-dollar Belt and Road Initiative last week, with 130 world leaders, including Russian President Vladimir Putin and Hungarian Prime Minister Viktor Orban, in attendance.
• The summit was Putin's first major trip since Russia launched its war on Ukraine. He has not traveled much since the International Criminal Court (ICC) issued a warrant for his arrest in March.
• President Xi Jinping of China said the BRI "represents the advancing of our times and the right path forward." 

What is the BRI?

• The Belt and Road Initiative is one of President Xi Jinping's key policies, designed to create a robust trade network and infrastructure that spans much of Asia, the Middle East, Africa, and Europe. It was launched in 2013 and drew comparisons to a high-tech version of the ancient Silk Road route. 
• The "Belt" refers to a series of overland routes connecting China to Europe through Central, South, and Southeast Asia. "Road" refers to a maritime network and port infrastructure that connects China to Asia, Africa, and Europe.
• As part of the project, China has invested in 150 countries as far afield as Kenya and Brazil. This includes investments in railways, roads, ports, and power plants and infrastructure financing.
• Due to its policy of lending money to low and middle-income countries through the Initiative, China is now the world's largest international creditor. Some countries are struggling to pay back the debt, and while China has extended an additional $240 billion to help with debt repayment, it has refused to cancel the debt.
• Beijing pushed the plan as a win-win, promoting it as a stimulus to international economies while arguing that it would help Chinese companies reach a global audience.
• Jacob Gunter, from the Mercator Institute for China Studies, said:

"It's about Chinese state-owned enterprises going abroad... to help facilitate the flow of resources that China needs. It's also about expanding and developing export markets as alternatives to the liberal developed world."

Criticisms of the BRI

• Some analysts have criticized China for "debt trap diplomacy" by locking poorer countries into expensive projects in a bid to eventually seize the assets put up for collateral. 
• Some have accused the Initiative of building "white elephant" projects that are environmentally damaging, wasteful, corrupt, and fail to promote the local economy or standard of living. The backlash has caused countries like Malaysia and Tanzania to cancel BRI deals with China.

Are you worried about China's global presence?

-Emma Kansiz

(Photo Credit: Merics, 2020)