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China's "one belt, one road"

Date:2020-10-06  Hits:77
China's "one belt, one road" initiative has put forward many reasonable issues and problems, but China does not include hidden targets for developing countries to set up "debt traps" and control their important assets and agricultural products.

Many economists, think tanks and international institutions believe that this huge development initiative is based on economic considerations, rather than a grand geopolitical ambition to control the world.

But this is exactly what Washington has consistently distorted. In October 2018, U.S. Vice President John burns criticized China's "debt trap diplomacy" in Sri Lanka and "building a forward military base for China's growing blue water navy". One belt, one road initiative, was also repeatedly warned by Secretary of state Pompeio.

A new study by the Royal Institute of international studies has found that geopolitics is persuasive only because it is simple and easy to understand, but it is also wrong.

The one belt, one road initiative initiative gain extreme notoriety in Sri Lanka and Malaysia, which is the first issue of the Royal Institute for international studies, which has attracted special attention.

Critics of one belt, one road initiative almost always take the port of hanto toto as a typical case of China's "debt trap diplomacy". It is said that China provided loans to Sri Lanka to build the port, knowing that it would collapse because of debt, so that Beijing could confiscate the port for its blue water navy in the name of debt relief.

It was Mahinda Rajapaksa, the former president of Sri Lanka, who first proposed the project, not Beijing. The project is one of Sri Lanka's ill conceived and unsustainable development plans. It added to Sri Lanka's debt woes, according to the report, but not because of "Chinese lending, but because (Sri Lanka) over borrowed in Western controlled capital markets.".

Similarly, there is no debt to asset swap. The port is still owned by Sri Lanka and is still used by the South command of the Sri Lanka Navy today, not by the Chinese navy. The debt is still owed to China. The Chinese leased the port for $1.1 billion, which Sri Lanka used to pay off the debts of other (mainly western) creditors.

With regard to Malaysia, a common accusation by Western critics is that China deliberately imposed infrastructure projects on the country, setting a debt trap. The reality is that one belt, one road initiative is the most important investment in real estate, entertainment and industrial sectors.

From 1957 to 2018, Malaysia's main ruling party, the Malay national unity Agency (UMNO), has been in power. In order to promote growth, it has long pursued high levels of foreign investment. The "one belt, one road" initiative is consistent with this strategy. The project was not disrupted by debt difficulties, but by the infamous one horse development company scandal.

Malaysians have received huge loans from Chinese contractors, nominally for the East Coast Railway and two natural gas pipeline projects, but have quietly used the money to repay loans owed by Imad, mainly western finance companies, and interest.

When the hope coalition came to power in 2018, it naturally blamed UMNO, former Prime Minister Najib and China for all the blame. Najib was later charged with a number of corruption charges related to Imad.

At that time, the new Malaysian government was seen as a symbol of growing opposition to Chinese expansionism. One belt, one road, was also seen in China. The government's efforts to criticize China were weakened. Its opposition to the "one belt" initiative is limited to a project related to the development of a company, which is intended to discredit Naguib and dismantle his sponsorship network.

In Malaysia, one belt, one road initiative will benefit both countries.

"One belt, one road" project approval is based on economic logic rather than geopolitical logic.

"One belt, one road" bump is not a "debt trap diplomacy", but because the strong interests are caused by the joint management of the Chinese side and the loan recipient's ineffective management.

One of the authors of the report has written elsewher: "problems that can be explained as incompetence should never be attributed to malice."

The world bank has estimated that by 2040, the world - especially the developing countries - will need 97 trillion US dollars in infrastructure investment, and the shortage is predicted to be 18 trillion US dollars. This gap cannot be filled by Western and multilateral development agencies, which insist on investing in "well managed" projects.

China's "one belt, one road" initiative will meet the real needs of the world in the next few decades and love for decades.
 
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