Chinese President Xi Jinping.
Gina Brown
Chinese President Xi Jinping’s grand banquet on October 17 in Beijing to celebrate the 10th anniversary of the Belt and Road Initiative (BRI), not only highlighted the significance of the occasion but also underscored the evolution and continued relevance of this monumental global project.
The BRI, also known as “One Belt, One Road,” is a visionary initiative that emerged in 2013. It was initially conceived as a platform for Chinese companies to invest in overseas infrastructure projects, supported by Chinese development bank loans. The overarching objective was to stimulate global trade and economic growth by modernising and expanding the ancient Silk Road trading routes, connecting China to the Middle East and Europe. Over the past decade, the BRI has transformed from a concept into a global reality.
It has left an indelible mark on international geopolitics, trade, and infrastructure development.
It has seen 152 countries sign agreements with China, making it one of the most extensive global infrastructure and economic co-operation projects in history.
While the BRI has been undeniably ambitious, it has not been without its challenges and controversies. Some Western nations, such as Italy, have reconsidered their participation due to concerns about trade imbalances. Italy, for example, experienced a significant increase in its trade deficit with China after joining the initiative in 2019.
Nevertheless, China’s commitment to the BRI remains unwavering. The Chinese government proclaims that the initiative has launched over 3 000 projects and has attracted nearly $1 trillion (about R18 trillion) in investment.
This substantial financial commitment has made China a major player in the field of development projects, placing it on par with institutions like the World Bank. The BRI has filled a void created as other international lenders shifted their focus away from infrastructure and toward sectors like health and education.
This shift was largely driven by concerns about the environmental and social impacts of large-scale construction projects.
Looking ahead, the BRI is set to undergo significant changes. Future projects are expected to be smaller in scale and more environmentally sustainable. They will rely more on investments by Chinese companies rather than government-backed loans to recipient nations.
Christoph Nedopil, director of the Asia Institute at Griffith University in Australia, anticipates that China will continue to undertake some large projects, particularly those with visible economic returns, such as railways and revenue-generating oil and gas pipelines. One noteworthy example is the recent launch of a high-speed railway in Indonesia, which garnered considerable enthusiasm in both countries.
Additionally, China has committed to ceasing the construction of coal power plants overseas, signalling its intention to contribute positively to global environmental efforts.
The BRI’s transformation is in line with China’s evolving role in global affairs. It reflects President Xi Jinping’s determination to position China as a leader on the world stage, departing from Deng Xiaoping’s policy of “hiding capabilities and biding time”.
The BRI aims to create a vast economic and trading network across Eurasia to rival the transatlantic dominance of the US. By investing in infrastructure and fostering co-operation with countries across Central Asia, China has aimed to create a more stable neighbourhood, particularly benefiting its restive regions of Xinjiang and Tibet.
Moreover, China’s engagement in projects around the South China Sea strengthens its territorial claims in the region, signifying the maritime dimension of the BRI.
* Brown is an International Relations and Economic Analyst at King’s College London
Cape Times
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