What was referred to as “The New Silk Road” which forever changed the global landscape was first introduced in 2013 by Chinese President Xi Jinping. The Belt and Road Initiative was created with the objective of using infrastructure to connect Asia and Europe but has since found its way into all areas of the world. The nation has frequently boasted about its achievements with this strategy, increasing time-space compression and the interconnectedness of the world. Yet, what often lingers behind these accomplishments are the countries themselves that China has earmarked. The BRI is not simply a geopolitical policy, but rather a multifaceted approach that creates developments for periphery countries, potentially with hidden motives. China has been seen exerting its dynamic capabilities to implement unexpected traps of debt.
Over the past decade, the BRI has significantly bolstered China’s influence internationally. More than 150 countries have signed cooperation agreements, committing to engendering shared goals with China in infrastructure building. One of the primary efforts of advancement is the high-speed rail, serving as a link between multiple regions to facilitate trade and commerce. The Boten-Vientane railway in Laos, the Jakarta-Bandung railway in Indonesia, and the Budapest-Belgrade railway in Hungary are all examples of landmark projects that apply Chinese technology and standards. It is not an exaggeration that the BRI has reshaped global economies, creating intergovernmental relationships as states have increased access to business with a wide range of economic sectors.
The BRI’s ambitious range, however, has also raised concerns about disproportionate benefits towards China. A less glorious reality, debt traps, have also followed construction as Chinese investments are exchanged for loans. The Boten-Vientane railway which was presented as a beacon of progress has left Laos with tribulations as it was estimated to cost six billion dollars. The World Bank has reported that the Laos currency, Kip, lost half of its value in 2022, and residents in the country encounter rising food prices and costs of living. In fact, Chinese creditors have received part of Laos’s energy network for 600 million USD as a means of debt relief, but the looming shadow of monetary funds owed still remains. Disadvantaged countries are shackled economically, forming a burden of weight that makes it impossible to stand on their own independently.
The effects of the BRI go much further than purely a country’s economic state, but also the direct impacts on the personal lives of everyday citizens. Many residents find themselves not being prioritized. A notable example is Pakistan, where its port city Gwadar, has become overrun by China. Pakistanis were originally promised electricity, yet a lack of transparency and awareness from the BRI has fostered a bitter atmosphere. Locals have stated that “China’s presence is undermining their livelihoods and creating local food shortages by allowing Chinese fishing boats to illegally fish in Pakistan’s waters around the port.” The community’s voice not being taken into account has been incredibly problematic for many locals, as it is only through the contribution of citizens’ efforts that a nation can flourish. Yet, construction in Gwadar remained.
China’s actions in leveraging the BRI have led to the augmentation of global commodity chains, with both advantageous and detrimental outcomes. As internationalism happens, states find themselves in an increasingly competitive atmosphere and it is imperative to acknowledge all aspects of geopolitical alliances and policies in the face of the ever-changing tenor of times. This is especially paramount at The Village School, a multinational environment made up of individuals from all across the globe. Thus, students are a direct reflection of the complex links in our society and cultural amalgamation, elucidating the significance of world affairs.
Resources
Zong Han, Miao “Ten years of the BRI: Raising China’s speaking rights amid geopolitical and debt risks,” Think China, 16 Oct 2023, https://www.thinkchina.sg/ten-years-bri-raising-chinas-speaking-rights-amid-geopolitical-and-debt-risks.
Baloch, Shah Meer, “Protests in Pakistan erupt against China’s belt and road plan,” The Guardian, 20 Aug. 2021, https://www.theguardian.com/environment/2021/aug/20/water-protests-in-pakistan-erupt-against-chinas-belt-and-road-plan.
Mcbride, James. “China’s massive belt and road initiative,” Council on foreign relations, 2 Feb. 2023, https://www.cfr.org/backgrounder/chinas-massive-belt-and-road-initiative.
Peter, Zsombor. “Hefty Debt to China Stokes Soaring Inflation in Laos.” Voice of America, Voice of America (VOA News), 3 Dec. 2024, www.voanews.com/a/hefty-debt-to-china-stokes-soaring-inflation-in-laos-/7885926.html.
