Daily Times

The world is abuzz with 10 years’ saga of the Belt and Road Initiative offering insight that how President Xi’s epic “BRI” from 2013 to 2023 is reshaping a new wave of globalization utterly different from Western-led globalization.

Having evolved into a comprehensive framework encompassing infrastructure development, trade facilitation, financial cooperation, and cultural exchanges across Asia, Europe, Africa, and beyond, BRI has established a new code of multilateralism that has nothing to do with “Economic World Order” practised by the US and its Western allies in the international arena. The BRI growth model centres on people’s interests instead of tycoons’ interests. It anchors on equity-based wealth distribution in the face of wealth concentration paradigms. It champions fair competitiveness instead of market hostility. It advocates meritocracy instead of monopolization. It spreads global harmony instead of hegemonic insidiousness. It promotes new regionalism that lies in economic corridors and belts in contrast to conventional economic unions and zones. It leads to global integration instead fragmentation. It empowers the world to jointly fight to overcome international challenges like high-tech modernization, economic depression and inflation instead of protectionism.

These aren’t rhetorical observations either. For instance, the practitioners of Western-led globalization have a track record of attaching political strings to the economic and financial support that they extend to Global nations. China, by contrast, has never done such a thing. It’s renegotiated certain BRI deals with some of its partners in response to the extraneous circumstances that the latter have experienced. This responsible approach debunked the “debt trap” disinformation narrative.

As we reflect on its journey so far, it becomes evident that the BRI carries both regional and international inevitability, with the potential to anchor economic miracles, adapt to challenges, and contribute to sustainable development.

The BRI growth model centres on people’s interests instead of tycoons’ interests.

This year marks the 10th anniversary of the proposal of the Belt and Road Initiative. Since then, China has signed 200 BRI collaboration agreements with 151 countries and 32 international organizations, according to Bai Chunli, president of the Alliance of International Science Organizations, a nonprofit, nongovernmental science organization to promote shared, sustainable development among BRI countries.

The initiative has provided new platforms for international trade and investment. Data showed that the cumulative value of trade in goods between China and countries along the BRI routes reached nearly $11 trillion from 2013 to 2021, while the two-way investment hit more than $230 billion. BRI’s Proven Worth at Regional and International Levels

Chinese engagement through construction and investment activities in BRI countries in 2022 surpassed non-BRI countries by USD50 billion. BRI countries outperformed non-BRI countries by USD21 billion in investment deals and by USD30 billion in construction engagement. East Asia experienced strong growth, with a 151 per cent increase in Chinese investments and a 76 per cent increase in construction contracts, making it the dominant recipient of Chinese engagement, accounting for 34 per cent of the total. Middle Eastern countries also expanded their cooperation with China, receiving approximately 23 per cent of Chinese BRI engagement (up from 16.5%) and 21 per cent of Chinese investment volume, twice the share of 2021.

The BRI carries both regional and international inevitability due to its potential to reshape the global economic landscape. Regionally, the initiative connects countries along the Silk Road routes, stimulating trade, infrastructure development, and cultural exchanges. It promotes regional integration, cooperation, and stability, fostering a sense of shared destiny among participating nations. Moreover, the BRI provides a platform for emerging economies to accelerate their development and bridge infrastructure gaps.

A Decade of BRI: Conspiracies and Reality

The Belt and Road Initiative (BRI) has not been without its critics and challenges. One of the major concerns raised is the issue of debt sustainability. Critics argue that some participating countries may face difficulties in repaying the loans obtained for BRI projects, potentially leading to a debt trap. The concept of the “Chinese debt trap” theory, often raised by Western media and critics, is a subject of debate in development discussions. China’s involvement in the Belt and Road Initiative (BRI) through investments and lending has been accused of burdening developing countries with excessive debt. However, a closer look reveals that China’s role in creating debt traps is often exaggerated.

In the case of Sri Lanka, for example, China is blamed for the majority of the country’s debt burden. However, reports indicate that China only accounts for 10 per cent of Sri Lanka’s debt, with the rest coming from other sources such as international currency markets, the Asian Development Bank, and Japan. While China has been accused of being a “neo-colonial power,” little is mentioned in Western media about China’s debt relief efforts. Over the years, China has written off approximately $9.8 billion of debt to other countries, particularly in Africa. China has also extended debt relief to poor countries under the G20 framework. The China International Development Cooperation Agency and the Export-Import Bank of China have suspended debt service payments from 23 countries, amounting to $1.353 billion. Notable examples of debt forgiveness include Cuba ($6 billion), Pakistan ($500 million), and Cambodia ($490 million).

There are significant differences between Chinese debt relief and that of the US and its controlled global financial institutions. China does not interfere in the internal political mechanisms of borrowing countries. In contrast, the US and its institutions often influence the political and economic policies of aid-seeking nations. China’s lending policy follows the principles of consultation, joint contribution, and shared benefits, emphasizing win-win outcomes for developing countries.

Rather than colonialism, China promotes solidarity among developing countries. Its financed infrastructure projects offer an alternative to US-dominated institutions like the World Bank and the Asian Development Bank, which makes them appealing to many developing nations. The narrative of the “China debt trap” is often used as a geopolitical tool. In reality, Chinese loans provide significant benefits to impoverished and developing countries, but this initiative is not always welcomed by the Western world. Environmental impact is another area of concern. As the BRI involves massive infrastructure development, there are concerns about its potential negative effects on the environment and sustainability. China released a set of “Opinions” in March 2022 to promote green development in its Belt and Road Initiative (BRI), a trillion-dollar infrastructure funding strategy across 100 countries. The “Opinions” aim to develop the green capabilities of overseas enterprises and encourage domestic renewable energy companies to expand globally. The move aligns with China’s goal of achieving carbon neutrality by 2060 and addressing concerns about the environmental impact of BRI projects.

The writer is a senior Journalist. He is also President of Institute of International Relations and Media Research (IIRMR).”