Examining the pros and cons of China's Belt and Road initiative

For a decade now, China has been championing the creation of an economic community that extends well beyond simple economic cooperation with nations participating in the Belt and Road Initiative. Their primary focus has centered on Central Asia and Africa, regions teeming with emerging economies, developing nations, and underdeveloped states. These countries have a pressing need to develop essential infrastructure such as roads, railways, ports, and airports to bolster their economic growth, and China has emerged as a vital source of support. By extending substantial loans for these countries, China has secured a foundation for expanding its global influence. This strategy has also solidified China's position as a major global player, often referred to as part of the "G2" alongside the United States. Notably, in contrast to the United States and other Western nations, China refrained from interfering in the domestic politics or human rights issues of these recipient countries while providing extensive assistance.

 In commemoration of the 10th anniversary of the Belt and Road Initiative, China has initiated a comprehensive campaign this year. According to the China National Development and Reform Commission, over the past decade, the Belt and Road Initiative, an expansive overseas economic development project, has engaged 152 countries and 32 international organizations. In Africa alone, this endeavor has witnessed the construction or ongoing development of highways totaling over 100,000 kilometers, more than 1,000 bridges, and in excess of 100 ports. It's noteworthy that this initiative has generated numerous employment opportunities. As of 2022, China's cumulative investment in the Belt and Road Initiative has reached an impressive 962 billion U.S. dollars. In addition to this, China is set to host a summit forum commemorating the 10th anniversary of the Belt and Road Initiative in its capital, Beijing, on next Tuesday and Wednesday. Representatives from 130 countries worldwide, including Russian President Vladimir Putin, are expected to attend. What sets this initiative apart is its truly immense scale.

Nonetheless, the Belt and Road Initiative has faced ongoing criticism, with concerns raised that it may function as a 'debt trap,' resulting in increased dependency on China for underdeveloped nations. Instead of significantly bolstering the economic development and sovereignty of these countries, China's involvement has led them to accumulate disproportionate levels of debt relative to their economic capacities. U.S. President Joe Biden has recently criticized the Belt and Road Initiative, characterizing it as a "fundamentally a debt and noose agreement."

As reported by the global credit rating agency Fitch, out of the 14 sovereign defaults that transpired by April this year, nine of them took place in nations involved in the Belt and Road Initiative. These nations include Sri Lanka, Argentina, and Lebanon. Additionally, data from the U.S. Center for Global Development (CGD) indicates that 23 of the countries engaged in the Belt and Road Initiative are facing a heightened risk of bankruptcy.

Hence, there is a growing global apprehension regarding the Belt and Road Initiative, which advocates for the 21st century's modern versions of the historic Silk Road, encompassing both land and sea routes.