There's a new highway in Pakistan. And a new rail terminal in Kazakhstan. A seaport in Sri Lanka recently opened as well as this bridge in rural Laos.
What's interesting is that they're all part of 1 country's project that spans 3 continents and touches over 60% of the world's population. If you connect the dots, it's not hard to see which country that is. This is China's belt and Road initiative. The most ambitious infrastructure project in modern history that's designed to reroute global trade. And it's how China plans to become the world's next superpower.
It's 2013 and Chinese President Xi Jinping is giving a speech in Kazakhstan where he mentions the ancient Silk Road, a network of trade routes that spread goods, ideas and culture across Europe, the Middle East and China. As far back as 200 BC. He then says we should take an innovative approach and jointly build an economic belt along the Silk Road. Then two sides should work together to build up a new maritime sproat in the 21st century. These two phrases were the first mentions of's legacy project, the multi trillion dollar belt and Road initiative, or Bri. They're also the two components of the plan. There's an overland economic belt of 6 corridors that serve as new routes take goods in and out of China, like this railroad connecting China to London and these gas pipelines from the Caspian Sea to China and a high speed train network in Southeast Asia. Then there's the maritime Silk Road, a chain of seaports stretching from the South China Sea to Africa that also directs trade to and from China. The BRI also includes oil refineries, industrial parks, power plants, mines and fiber optic networks, all designed to make it easier for the world to trade with China. So far, over 60 countries have reportedly signed agreements for these projects, and the list is growing because China promotes it as a win win for everyone. Take for example, the BRI flagship project, Pakistan. Like many countries in Central and South Asia, Pakistan has a stagnant economy and a corruption problem. It wasn't a popular place for foreign investment.
That is, until China came along. In 2001, China offered to build a brand New Port in the small fishing town of Gwadar. By 2018, the port, as well as a highway and railway networks, became a $62 billion corridor within the BRI. It's where the economic belt meets the maritime Silk Road, and it seemed to benefit both countries. Pakistan saw its highest GDP growth in eight years and forged a tight relationship with a major world power. China, on the other hand, secured a new alternative route for goods. Especially oil and gas from the Middle East. Through projects like these, it also found a way to boost its economy. Chinese construction companies that had fewer opportunities within their own country saw a huge boost from BRI contracts. 7 out of the 10 biggest construction firms in the world are now Chinese.
What tips the balance in China's favor, even more, is a requirement that it be involved in building these projects. In Pakistan. For example, Chinese workers have directly built projects like this highway here and a Chinese firm has worked with locals on a railway here in Serbia. China's involvement is one of its very few demands, and that set these deals apart so far. See typically to get investment from the West, countries have to meet strict ethical standards, but China's offered billions of dollars, mostly in loans, with far fewer conditions.
So it's no surprise that Bri has been a big hit with the less democratic countries in the region. China has signed agreements with authoritarian governments, military regimes, and some of the most corrupt countries in the world. It's even affiliated with Afghanistan, Ukraine, Yemen, and Iraq, all currently splintered by conflict.
Because of China's willingness to loan money to unreliable countries, many experts have called the BRI a risky plan. Eventually, these countries will have to pay China back, but corruption and conflict make that payback unlikely. A recent report found that many of the countries indebted to China are very vulnerable, including eight that are at high risk of being unable to pay. So why does China keep lending? Because there's more to the BRI than just economics.
In Sri Lanka,China loaned about $1.5 billion for a new deepwater port. It was a key stop in the maritime Silk Road. By 2017 it was clear Sri Lanka couldn't pay back the loan, so instead they gave China control of the port as part of a 99 year lease. China also controls the strategic port in Pakistan, where it has a 40 year lease. It's pushing for a similar agreement in Myanmar and it just opened an actual Chinese naval base in Jabuti. These are all signs of what's been called the string of pearls theory. It predicts that China is trying to establish a string of naval bases in the Indian Ocean that will allow it to station.
Ships and guard shipping routes that move through the region. So while China's not getting its money back, it's still achieving some very important strategic goals. China's growing influence challenges the status of the US, which has been the world's lone superpower for the last several decades. But isolation is trending in the US, meaning that they are investing less and therefore losing influence around the world. The BRI is China's way of leveraging power to become a global leader by building relationships and taking control of global trade. China is well on its way.
In the conclusion,
' US - war and loot initiative
China - Belt and road initiative '
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