Belt and Road Initiative
- Also called:
- New Silk Road
- Formerly:
- One Belt, One Road (OBOR or 1B1R)
News •
Belt and Road Initiative (BRI), Chinese-led massive infrastructure investment project aimed at improving connectivity, trade, and communication across Eurasia, Latin America, and Africa. Among the infrastructure projects it has supported are airports, ports, power plants, bridges, railways, roads, and telecommunications networks. Whereas China emphasizes that the BRI aims to enhance economic connections and collaborations in the targeted regions, many in the West view it as a strategy to expand China’s sphere of economic and political influence around the globe.
BRI infrastructure projects connect China with different parts of the world: by land with regions such as Southeast, South, and Central Asia, as well as Europe; and by sea with coastal areas, including Southeast and South Asia, the Middle East, and Eastern Africa. Major projects that have been developed under the BRI include the China-Pakistan Economic Corridor (CPEC), the China–Mongolia–Russia Economic Corridor, and the New Eurasia Land Bridge. More than 140 countries, including several members of the European Union, have signed on to the BRI. China has lent more than $1 trillion to developing countries and has become one of the largest creditors to developing countries.
Early development
The initiative was launched by Chinese Pres. Xi Jinping in 2013, the same year he came to power. In September 2013, during an official visit to Kazakhstan, Xi announced the Silk Road Economic Belt, a plan to develop overland infrastructure to connect the region. The Silk Road—an ancient trade route linking China with the West—inspired the project. Several weeks later, Xi announced the Maritime Silk Road project to bolster the connectivity between Asia and East Africa through ocean routes. The projects were collectively called One Belt, One Road. Later, in 2015, the English translation of the initiative was recast as the Belt and Road Initiative to reflect the project’s scope, which had expanded significantly since its launch.
BRI’s impact
The BRI has had a significant economic impact across the world. Although Chinese contractors and construction companies often carry out the projects, China claimed that the initiative had created more than 400,000 jobs in the host countries and helped to lift more than 40 million people out of poverty. One of the most significant projects of the BRI is the CPEC, a bilateral project that aims to facilitate trade between China and Pakistan. It has been estimated that the investment for CPEC-related projects is more than $60 billion. Through the CPEC, hundreds of miles of highways and railways as well as the country’s first solar power plant were built in the 2010s. Another large-scale BRI undertaking is a liquefied natural gas plant on the Yamal Peninsula in the Russian Arctic, a collaborative project between China and Russia.
Whereas some experts pointed out that several projects have been left unfinished or poorly executed, China reported that more than 3,000 projects have been completed under the BRI worldwide. In October 2023, to celebrate the 10th anniversary of the launch of the BRI, representatives of dozens of countries gathered in Beijing. Among the high-profile figures representing their countries at the BRI summit were Russian Pres. Vladimir Putin and Hungarian Prime Minister Viktor Orbán. In the early 2020s, China invested in new projects valued at approximately $100 billion.
Concerns surrounding the BRI
Despite the achievements of the BRI, the initiative has proved to be a significant burden on developing countries’ finances, with some experts fearing that these countries have been pushed to the edge of economic collapse. The economic impact of the global COVID-19 pandemic and global inflation caused by the Russia-Ukraine War also slowed progress on projects, exacerbated financial difficulties, and made BRI loans even more unsustainable. Pakistan, for example, has struggled to make external payments, as one-fourth of its total debt is owed to China. Similarly, Sri Lanka has struggled to repay its debt to China from a billion-dollar port project outside Colombo. After negotiations with China in 2017, Sri Lanka agreed to lease the port and 15,000 acres (6,000 hectares) of land around it to China for 99 years. Because of those instances in which China has taken assets from borrowers after they have struggled to repay their debts, in 2023 U.S. Pres. Joe Biden called the BRI a “debt and noose agreement.” China, however, denies such allegations, and, according to a study published by the World Bank and other institutions, the country spent $240 billion to bail out about 22 countries from 2008 to 2021 and renegotiated or wrote off approximately $78 billion in debt from 2020 to 2022.
Some experts also have raised concerns about BRI’s adverse environmental effects, including greenhouse gas emissions. Countries such as Kenya, Bangladesh, and Vietnam have opposed coal projects. Responding to environmental concerns as well as the slowing of its economy as a result of the COVID-19 pandemic, China announced in 2021 that the BRI would focus more on smaller-scale projects that would be environmentally friendly. China also pledged to halt financing coal-fired power plant projects. Since the announcement, there has been a shift from investment in coal-fired power plant projects to renewable energy projects.
