Challenges from the United States! For China’s Belt and Road initiatives!

Updated on August 22, 2022 16:47 PM by Ava Sara

The Belt and Road initiative!

China's Belt and Road initiative is initiated by the people's Republic of China and aims to connect Asia with Africa and Europe via land and maritime networks to improve regional integration, increase trade, and stimulate economic growth. This initiative aims to develop an expanded, interdependent market in china, grow China's economic and political power and create the right conditions for China to build a high-technology economy.

Billions of dollars on infrastructure projects!

Beijing has a development initiative called the Belt and Road that poured billions of dollars into infrastructure projects each year, paving highways from Papua New Guinea to Kenya and constructing ports from Sri Lanka to West Africa that provide power and telecoms infrastructure for people from Latin America to Southeast Asia. Washington is now competing with China in the role of global infrastructure development.

Game-changing projects!

In June, Biden and leaders from Group of Seven advanced companies promised to unleash $600 billion in an investment where $200 billion from the US alone. By 2027 they plan to deliver game-changing projects to close the infrastructure gap between countries. The challenge from the United States comes at a precarious time for China’s Belt and Road. The initiative impacted several countries, and some countries have public concern over excess debt and China's influence.

Is this initiative a boom or bust?

The Chinese leader Xi Jinping launched this initiative in 2013, which has powered the construction of bridges, highways, ports, telecoms, and energy projects across Asia, Africa, Latin America, and parts of Europe. From 2013 to 2017, for the first five years, China spent $85 billion financing overseas development projects per year, twice as much as other major economy.

Also Read: China’s Massive Belt and Road Initiative

Scientist Ammar A. Malik heads AidData's Chinese Development said that 35% of the projects are suffering from some ports of implementation projects. The issues include environmental incidents, corruption scandals, and labor violations. China's economy flags amid a mortgage crisis in the initiative's direction, and the company is facing a struggle with rising debt and inflation at the COVID-19 lockdowns.

Recovery and growth of the global economy!

Belt and Road data source is difficult to work with where China's projects slow down due to the pandemic. From 2019 to 2020, Chinese loans to Africa dropped 77%, from $8.2 billion to $1.9 billion. The initiative fails because delayed or distressed projects would be premature and simplistic, deeming Chinese global influence.

Build back a better world!

For most developing countries, the US is the world's top donor where it can mobilize its private sector. In 2021, the G7 initiative announced Build Back Better World to a slow start. The leaders launched the initiative in Germany this summer called the Partnership for Global Infrastructure and Investment. Governments of the continent welcome more funding sources to meet shortfalls, and the US is more transparent as it has some advantages regarding soft power.