Belt and Road initiative

• Four years after becoming the only G7 nation to join China’s ambitious Belt and Road initiative (BRI), Italy has decided to leave the project.
• The deal was due to automatically renew in March 2024 unless Italy opted out by the end of 2023.

ABOUT BRI

• The Belt and Road Initiative (BRI) is a global infrastructure development strategy launched by China in 2013.
• It aims to invest in over 150 countries and international organizations, creating road, rail, and sea routes for trade and connectivity.
• The initiative, often referred to as “One Belt One Road” (OBOR), is a key part of China’s foreign policy.
• The initiative includes two principal components-
  • Silk Road Economic Belt- This segment is dedicated to improving connectivity, infrastructure, and trade links across Eurasia through a network of overland transportation routes.
  • Maritime Silk Road This component emphasizes maritime connections and cooperation in the form of ports, shipping routes, and maritime infrastructure projects.
    • It begins via the South China Sea going towards Indo-China, South-East Asia and then around the Indian Ocean thus reaching Africa and Europe.
  • Issues
    • “Debt-trap diplomacy” of China
    • Geopolitical rivalries and disputes
    • Implementation problems like labour violations, environmental hazards, corruption scandals etc.

Sierra Leone in 2018 and Philippines in 2023 had also announced their exit from BRI.