High-speed railways in Indonesia and Nigeria, the Port of Piraeus in Greece, a wind farm in Chile, and the Colombo Port City in Sri Lanka – what unites these grandiose infrastructure projects? First – the unimaginable sums they cost. And second – one source of funds with which these facilities were built. Who is this mysterious benefactor?
If you read the blog about Sri Lanka, I think you have already guessed that it is China. In 2013, Beijing announced the creation of a global project called "One Belt, One Road" (hereinafter referred to as OBOR). Its essence is to build a unified network of trade routes connecting Asia, Europe, Africa, and South America.
For China, as the initiator of the project, OBOR is needed for global dominance by creating new markets for its own goods and investments. And well, where possible, it can also place its military bases. Especially since there is a large choice – the project affects 151 countries.
Over the next 30 years, Beijing plans to build several major economic corridors. To do this, China is handing out loans left and right – from Kenya to Laos – but it is also building the railways and international ports itself.
In 2020, the trade volume between China and the "Belt and Road" countries reached $1.35 trillion, which is almost 30% of China's foreign trade volume. The total turnover of Chinese enterprises on projects was nearly $640 billion; they paid over $4.4 billion in taxes and fees on the territory of foreign states, creating 330,000 jobs.
Everything seems great on the surface: infrastructure develops in countries that would hardly have appeared anytime soon without outside help; the budget is replenished with taxes, and people get work. But Chinese "care" is far from altruism.
This is because it is built on "debt traps." With new roads and ports, countries plunge headlong into loans with harsh conditions.
Western critics of the initiative latched onto this, saying it's inhumane and, in general, there are signs of neocolonialism. But is that all there is to it? Obviously, no.
The West, led by the United States, sees China's project as an attempt to shift the global balance of power in its favor. In the last few years, China has been spending about $85 billion annually on foreign projects, while the US spends $37 billion. And what leader likes the emergence of a competitor?
Some experts even compare OBOR to the Marshall Plan – the US project in which they invested trillions of dollars in Europe's economy and then incorporated it into their sphere of influence.
Of course, the creators of OBOR themselves deny all accusations of expanding Chinese influence, but we know that there is no altruism in the global economy and geopolitics.
There are spheres of interest and limited resources that must be fought for if you want your economy to grow and your population to live comfortably. And in this regard, China's progress is something to envy.