China’s controversial Belt and Road Initiative is the cornerstone of its ambitious foreign policy strategy. The initiative seeks to replicate the historic Silk Road trading routes through financing a series of projects across Asia, Eastern Europe and Africa. Over sixty , accounting for two-thirds of the world’s population, have indicated their interest or have already signed up for projects.
China’s investment model in developing countries is likely to tolerate corruption and a lack of transparency, which has a range of destabilizing impacts. Moreover, the risk of the institutionalization of BRI investments in developing countries has increased fears that it could increase the likelihood of the authoritarian model being adapted, whilst undermining the political and economic independence of developing countries in the long term. Therefore, the increased presence of China throughout the developing world poses an implicit threat.
China is consolidating geopolitical power through predatory practices. Throughout exploitation of its debts, China has convinced the Sri Lankan government to agree to a 99 year lease to operate its strategic Hambantota port. In Greece, Chinese firms bought 51% of the port authority in Piraeus port near Athens in 2016, following the economic crisis.
The likelihood of a Chinese monopoly on untapped resources is a concern. Countries like Azerbaijan are known for their oil and natural gas reserves. China’s singular presence would be problematic for both foreign investors and global powers alike.
Meanwhile, for local economies, foreign loans and accumulating debt increases the risk of an economic ‘drain’, without guarantee of sustainable reinvestment into the local economy.
The BRI initiative will be felt on a global stage over the next decade. The use of loans to finance projects and the accumulation of unsustainable debt in developing countries remains a significant long term risk, as debts could be used to leverage economic, political and military power.
Many members of Congress, on both sides of the political aisle have economic ties to China which would begin to explain the ongoing vigorous opposition from both Democrats and some “Republicans” to the “America First” attitudes of the Trump administration which have, (until the conveniently timed Covid-19 crisis), strengthened the US vs. Chinese economic expansion world-wide.
The American electorate really only has two choices. #1, educate themselves regarding the conflicts of interest on the part on many of their elected representatives. OR #2, learn Mandarin Chinese.