Overview of China’s Belt and Road Initiatives

The term “Silk Road” refers to both the ancient trade routes and the modern Chinese project. China’s Belt and Road Initiative (BRI) is an ambitious global project. It aims to enhance regional relations and foster economic cooperation by building infrastructure and trade networks. Let’s dig into this major tool of Chinese soft power and influence.

What are these “Roads”?

In the past, the Silk Roads were trade routes linking China to Eurasia, the Middle East, and parts of Africa. These routes were created two millenaries ago. China exported silk, porcelain, paper, and tea. It imported horses, wool, glass, spices, and precious metals. These roads eased the spread of religions, technologies, and ideas.

The modern version was launched in 2013 by President Xi Jinping. The first plan was to link East Asia and Europe through physical infrastructures. But the project expanded to most continents. This shows China’s soft power.

There are two main parts to this project:

• Silk Road Economic Belt: overland routes through Central Asia, Russia, and Europe.

• 21^st Century Maritime Silk Road: sea routes through South Asia, Africa, and the Mediterranean.

The goal is to boost global trade by building infrastructures. These include:

• Highways and bridges,

• Railways,

• Ports,

• Pipelines,

• Digital networks.

Adding to these, Beijing funded special economic zones. These are industrial areas designed to create jobs. It also encouraged countries to buy its technologies, like the 5G network powered by Huawei.

These projects are mostly financed by Chinese banks owned by the state. These include:

• China Development Bank,

• Export-Import Bank of China,

• Asian Infrastructure Investment Bank.

China’s total expenses on the BRI could reach more than $8 trillion.

Over 150 countries signed deals. The strongest participation comes from:

• Southeast Asia,

• South Asia,

• Central Asia,

• Africa,

• Eastern and Southern Europe.

The largest BRI project so far is the China-Pakistan Economic Corridor (CPEC). It is estimated at $62 billion. It aims at connecting China to the Gwadar Port in Pakistan. China is even trying to bring Afghanistan to the project. Beijing has been negotiating with the Talibans since they took over. They are trying to settle tensions between Afghanistan and Pakistan. All that for the sake of BRI’s stability.

Strategic objectives for China

China seeks both geopolitical and economic goals with the BRI. It puts China at the center of global trade. It is also a key part of Beijing’s strategy for shaping a multipolar world where it has a leading role.

China’s objectives include:

• Economic expansion: open new markets for goods and services,

• Sales of excess capacity: export surplus steel, cement, and engineering capacity,

• Energy security: build pipelines and transport corridors to diversify energy sources,

• Expand China’s currency: promote the use of the Yuan in trade and investment.

• Strengthen geopolitical influence: expand China’s soft power and strategic presence abroad.

Controversies and criticisms

There are many criticisms on the project.

It is accused of being a debt-trap diplomacy. China lends more than countries can repay, gaining leverage. Some countries’ debts to Beijing are more than 20% of their GDP. For example, Pakistan widened its budget deficit to meet CPEC requirements. It then had to be bailed out by the IMF.

There is also a lack of transparency. Many deals are opaque with little public oversight. They often require Chinese firms as contractors that end up inflating costs. Some projects have also been tainted by bribery.

The BRI also comes with consequences for nature. Half of BRI spending is on nonrenewable energy. Fossil fuels make up 80% of China’s BRI energy investments. Solar and wind only accounts for 3%. Also, more than half of the coal power plants built in BRI are high emission plants. China is trying to meet the Paris Climate Accords and eliminate coal. But to avoid state-owned coal companies’ bankruptcy and continue to profit China operates from abroad.

There are also worries about the impact of the expeditions to access oil and gas underneath the melting polar ice in Russia. These projects are made in cooperation with Russia. But they are mostly financed and equipped by China. They aim at expanding Chinese infrastructures in the Arctic Circle. They should secure energy, commercial and geopolitical gains. But these projects damage nature.

China also worries with its military and political presence in key places. Beijing expands its influence where other great powers faced opposition. This is mostly the result of China’s approach. It axes its effort on business relationships. They do not seek to impose democracy or human rights.

In return, programs were created to offer alternatives and restrain China’s influence:

• G7 Partnership for Global Infrastructure and Investment (PGII): funding infrastructures in developing countries, 

• U.S.  Build Back Better World (B3W): initial version of PGII,

• EU Global Gateway: strategy by the European Union to invest in infrastructure projects worldwide.

But these attempts struggle to counter China’s growing influence. This has been further amplified by the U.S. cuts in global aid. This leaves room for China to step in and fill the vacuum.

Decoding geopolitics isn’t a job. It’s survival.

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