Note4Students

From UPSC perspective, the following things are important :

Prelims level: BRI, CPEC, IMEC etc

Mains level: BRI, objectives, achievements, challenges and global alternatives

What’s the news?

The Third Belt and Road Forum for International Cooperation convened in Beijing, China (October 17–18).

Central idea

The recent Third Belt and Road Forum for International Cooperation held in Beijing, China, has once again brought the Belt and Road Initiative (BRI) into the spotlight. The BRI, initiated by Chinese President Xi Jinping, has been a cornerstone of China’s foreign policy and global aspirations.

Transition to a Global Power: The BRI seeks to transform China from a regional power with global influence into a comprehensive global power. It aims to elevate China’s status on the world stage.
Reboot Globalization: The BRI is viewed as China’s effort to rejuvenate and reshape globalization. It intends to address perceived shortcomings in the current global order and advance a new form of global economic integration.
Alternative Trade Routes: China aims to develop alternative transportation and trade routes through the BRI to reduce its dependence on the Strait of Malacca, a critical trade route for China’s economy.
Promoting Local Currency in Trade: President Xi Jinping advocates the use of local currencies in trade to lessen reliance on the US dollar, thereby reshaping the global economic order.

Establishment of the Asian Infrastructure Investment Bank (AIIB): China has established the AIIB with a substantial $100 billion, challenging existing lending institutions and enabling early gains from the BRI.
Global Branding for Xi Jinping: The BRI has provided President Xi Jinping with a platform to establish himself as a global statesman and project China’s power and influence overseas. It has been incorporated into China’s domestic political framework.
BRI Cooperation Pacts: Over 200 BRI cooperation pacts have been signed with more than 150 nations, demonstrating the initiative’s global reach and influence.
Addressing the Global Infrastructure Deficit: The BRI aims to bridge the global infrastructure deficit, including access to electricity, clean water, and broadband, with projects ranging from motorways to digital infrastructure.

Ecological Damage: BRI projects have been criticized for causing ecological harm, including deforestation and environmental degradation.
Displacement of People: Some BRI projects have led to the displacement of local communities, raising social and humanitarian concerns.
Disputes and Labor Unrest: Disputes have arisen over issues such as payouts and labor conditions, impacting the smooth execution of BRI projects.
Debt Concerns: Concerns about unsustainable debt have emerged, particularly in cases like Laos, where the country owes a significant proportion of its GDP to China.
Unequal Benefits: In cases like the China-Pakistan Economic Corridor (CPEC), there are perceptions that the BRI disproportionately benefits China, raising questions about the initiative’s win-win cooperation tagline.

United States-Japan Initiatives: During the Trump era, the United States and Japan initiated infrastructure investment alternatives in the Indo-Pacific region as a response to the BRI.
Build Back Better World (B3W) Initiative: The Biden administration introduced the ‘Build Back Better World’ initiative, aiming to channel private capital into sectors like climate change, energy security, healthcare, digital technology, and gender equity as a counter to the BRI.
India-Middle East-Europe Corridor (IMEC): The G-20 Delhi summit proposed the India-Middle East-Europe Corridor, envisioning trade connectivity, electricity and digital infrastructure, and clean hydrogen export pipelines, offering an alternative to the BRI.

As the BRI nears its second decade, it faces pivotal choices. Despite notable global infrastructure achievements, sustainability, fairness, and environmental issues pose challenges. Emerging global alternatives signal diverse visions for international cooperation, shaping the BRI’s future based on China’s ability to address these challenges and adapt to evolving global dynamics.