![]() ![]() For example, in 2017, Kenya's cement exports declined due to the influx of Chinese overcapacity to Tanzania and Uganda. Debt from OBOR projects has grown to more than 20 times the country's GDP, and governments have taken on more debt to pay it off.³ In addition, cheaper Chinese materials have been offered at more competitive prices than local exports from countries participating in OBOR. Similarities exist between the publicly despised IMF debt for emerging markets and the economic sustainability of China's new debt. China's attitude to privacy and liberalism.Whether China is setting a debt trap for borrowing governments.This might not be a bad thing as China has seen a 50% increase in gross enrolment in the tertiary education level since the country opened up 20 years ago.Ĭriticisms of One Belt One Road focus on China's aggressive nature to become a rising superpower today. Countries to participate are expected to adopt China's stance on education and gender equality in the Health Silk Road and Digital Silk Road. To promote cultural influences ( soft power). ![]() Further development of its spheres of influence (economic, military and political) requires collaboration with friendly countries for mutually beneficial projects. Why is OBOR important to China's development?Ĭhina's recent growth has peaked. ![]() China's Central Bank oversees it.² The Asia Infrastructure Investment Bank, whose remit now includes Africa, has $100 billion in capital. The Silk Road Fund has $40 billion in investment funds. This group includes the China Development Bank and the Export-Import Bank of China (Exim Bank), which have committed more than $1 trillion. Policy lenders provide funding and base their lending decisions on presidential and geostrategic influences. Trade can be 'choked off' at this point in the route). By acquiring strategic assets, Shina can take control of regional chokepoints in its trade routes (This is a part of a sea route controlled by another country. The String of Pearls geo-economic strategy suggests this, whereby China is seeking to acquire strategic assets rather than repay its debts. Pakistan handed over Gwadar port on a 40-year lease.² Sri Lanka defaulted on an infrastructure loan in 2017 and had to hand over the Hambantota port to Chinese state-owned companies under a 99-year lease.³ Kyrgyzstan and Tajikistan have welcomed the project or any other significant investment with open arms, being among the first countries to join the project. A flagship OBOR project in East Africa is the railway link between Mombasa and Nairobi, the biggest investment in Kenya since the country's independence. How many countries are involved in One Belt One Road?Īccording to the official list, the OBOR project has 137 countries, but the criteria for participation is vague and not legally binding.² Other online articles often state that 78 countries are involved.² This contradiction sheds light on the problem with the large-scale global grand plan: How will China achieve its goal?Įarly stages of the project have already been completed, such as in Kenya. The China-Pakistan Corridor will connect southwest China to Arabia sea routes via Pakistan, at a cost of $46 billion.² Increasing Sino-Pakistani relations anger India thought to be moving closer to United States. The Eurasian Land Bridge will connect western China with western Russia, essential for China's energy security. ![]()
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