Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China's Belt and Road plans losing momentum as opposition, debt mount -study

CommoditiesSep 29, 2021 08:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Visitors walk past a wall with a map showing the species of peony in Belt and Road Initiative (BRI) countries, at horticultural exhibition Beijing Expo 2019, in Beijing, China April 29, 2019. Picture taken April 29, 2019. REUTERS/Stringer

By David Stanway

SHANGHAI (Reuters) -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, a new study showed on Wednesday.

President Xi Jinping launched BRI in 2013, aiming to harness China's strengths in financing and infrastructure construction to "build a broad community of shared interests" throughout Asia, Africa and Latin America.

But Xi's "project of the century" is now facing major challenges and significant backlashes abroad, according to a study by AidData https://www.aiddata.org/publications/banking-on-the-belt-and-road, a research lab at the College of William and Mary in the United States.

"A growing number of policymakers in low- and middle-income countries are mothballing high profile BRI projects because of overpricing, corruption and debt sustainability concerns," said Brad Parks, one of the study's authors.

AidData said $11.58 billion in projects in Malaysia have been cancelled over 2013-2021, with nearly $1.5 billion cancelled in Kazakhstan and more than a $1 billion in Bolivia.

China's foreign ministry said in a statement that "not all debts are unsustainable", adding that since its launch the BRI had "consistently upheld principles of shared consultation, shared contributions and shared benefits".

Many partner countries say the initiative has made a positive contribution to local economic development, it added.

'SOUND' PRINCIPLES

He Lingxiao, spokesperson for the China-led Asian Infrastructure Investment Bank, which is closely linked to the BRI, said "the overarching principles of BRI are sound".

"How these principles will be translated into operational reality is where we advocate for high international standards," He said.

The AidData study looked at 13,427 China-backed projects in 165 countries over 18 years, worth $843 billion in total, and noted that Beijing's annual international development finance commitments are now double those of the United States.

But major changes in public sentiment make it difficult for participating countries to maintain close relations with Beijing, Parks said.

The study said an increasing number of China-backed projects have been suspended or cancelled since BRI's 2013 launch, with evidence of "buyer's remorse" in countries as far afield as Kazakhstan, Costa Rica and Cameroon.

Credit risks have also increased, with the exposure to Chinese debt now exceeding 10% of gross domestic product (GDP) in many low- and middle-income countries.

The survey found that 35% of Belt and Road projects were struggling with corruption, labour violations, environmental pollution and public protests.

In June, the United States announced a rival G7 initiative known as Build Back Better World (B3W) to provide financial support for developing nations to build infrastructure.

"B3W is going to increase choice in the infrastructure financing market, which could lead to some high-profile BRI defections," Parks said.

AidData's study received funding from a diverse group of private and public organizations, including the Ford Foundation and the U.S. Agency for International Development (USAID).

It said its research is independent and transparent and not guided or determined by its funders.

China's Belt and Road plans losing momentum as opposition, debt mount -study
 

Related Articles

Gold Up, Boosted by Omicron Concerns
Gold Up, Boosted by Omicron Concerns By Investing.com - Nov 28, 2021 1

By Gina Lee Investing.com – Gold was up on Monday morning in Asia, with concerns over the impact of the possibly vaccine-resistant omicron COVID-19 variant giving the safe-haven...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Jose Maderno
Jose Maderno Sep 29, 2021 7:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More propaganda from Reuters with an assist from William and Mary (aka socialist training camp) trying to help Hunter to allow China to continue their bribery program with no challenger.  Don't worry...spending 843 billion dollars will not end up bribing any government officials...promise.
John Laurens
John Laurens Sep 29, 2021 5:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Interesting.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email