China’s BRI plans

September 30, 2021

Syllabus: General Studies Paper 2

Context:

China’s Belt and Road plans are losing momentum as opposition and debts are mounting.

Background

China’s vast Belt and Road Initiative (BRI) is in danger of losing momentum as opposition in targeted countries rises and debts mount, paving the way for rival schemes to squeeze Beijing out.
President Xi Jinping launched BRI in 2013 to use China’s strengths in financing and infrastructure construction to “build a broad community of shared interests” throughout Asia, Africa and Latin America.
But the President’s “project of the century” is now facing major challenges and significant backlashes abroad.

Objectives of the Silk Road Economic Belt

The objectives of the Silk Road Economic Belt are in sync with its parent initiative, One Belt One Road. They are as follows:

To create a cohesive economic zone by building hard infrastructures, such as rail and road links, and creating soft infrastructures in the form of signing a trade agreement and creating a commercial legal structure with a court system to monitor and enforce the agreements.
To strengthen cross-cultural exchanges and mutual understanding between nations that are part of the BRI initiative.
This strategy is also in line with pushing the export of Chinese technologies in new markets, as well as increasing the production capacity in industries such as electronics, construction and logistics. It is expected that both the land-based Silk Road Economic Belt and the sea-based 21st Century Maritime Silk Road both will play a crucial role in this regard.

Significance of Belt and Road Initiative

In the wake of the global slowdown, BRI offers a new model of development to China to maintain its economic growth. OBOR envisions building networks of roadways, railways, maritime ports, power grids, oil and gas pipelines, associated infrastructure projects which helps the Chinese economy.
BRI has a domestic and international dimension: as it visualises a shift from developed markets in the west to developing economies in Asia, Africa And a shift in China’s development strategy concentrating on provinces in central and western China instead of the developed east coast region.
Strategically important as China utilizes its economic clout to build it soft power.

Criticism and Issues with Belt and Road Initiative

Debt-trap diplomacy of China where BRI projects are pushing recipient countries into indebtedness and do not transfer skills or technology. For instance, Hambantota port, where Sri Lanka was forced to lease the port to China for 99 years. Also, there has been rethinking of projects in Malaysia, Maldives, Ethiopia and even in Pakistan.
BRI represents the political and economic ambitions of China making countries like the US, Japan, Germany, Russia, and Australia unhappy about the impact of Beijing’s moves on their own economic and political interests.
China-Pakistan Economic Corridor (CPEC), an important component of BRI, passes through Pakistan-Occupied Kashmir, which is the main reason for India signalling its displeasure over BRI and not participating in both the BRFs.

India boycotting Belt and Road Initiative (BRI) Project

CPEC violates India’s sovereignty as it passes through the part of the Pakistan-occupied Kashmir that belongs to India and no country can accept a project that ignores its core concerns on sovereignty and territorial integrity.
India also raised concerns regarding unsustainable debt trap, environmental concerns, and transparency in the assessment of project costs, and skill and technology transfer to help long term running and maintenance of the assets created by local communities.
India is too big to be isolated and India’s continued objection will make China to consider its core concerns.

The Indian Express Link:

Question: How do China’s Belt and Road initiative impact India’s security and foreign relations, especially with neighbouring countries?