China’s Belt and Road Initiative (BRI)

Background of BRI

• Launched in 2013, the BRI is aimed at enhancing global connectivity and cooperation.
• It comprises the Silk Road Economic Belt and the Maritime Silk Road.
• The Silk Road Economic Belt enhances connectivity, infrastructure, and trade ties in Eurasia.
• The Maritime Silk Road targets maritime connections and cooperation.

Objective and Geographic Corridors

• BRI Consists of Six Corridors
  • CPEC, New Eurasian Land Bridge Economic Corridor, China-Indochina Peninsula Economic Corridor, China-Mongolia-Russia Economic Corridor, China-Central Asia-West Asia Economic Corridor, and China-Myanmar Economic Corridor.
• The inclusion of Bangladesh-China-India-Myanmar (BCIM)
  • Economic Corridor by India has been made initially, but it is withdrawn because of the controversy over CPEC.
• Economic Impact
  • Countries of the BRI have seen an upsurge of trade and investments with China, however, along with this it comes with associated privileges and policy benefits.
  • Trade with partners of the BRI realized an annual rate of 6.4%, which cumulatively comes to $19.1 trillion over the period 2013-2022.
• India stands on the Issue of BRI
  • India has opposed this project in sovereign and the issue of being transparent.
  • It has boycotted the summits on BRI hosted by China in 2017 and 2019 and never approved the joint statements presented by the SCO regarding the BRI.
  • India contends that BRI projects should observe the norms of the international system, the rule of law, and financial viability.

Concerned Issues over the BRI

• Debt Burden
  • The debt sustainability and transparency for the projects involved in BRI have faced several criticisms, majorly countries with weak governance, higher rates of corruption and lower credit ratings.
• Multilateral Governance
  • In terms of BRI, it presents a package mostly of bilateral projects. These raise coordination issues as well as governance-related challenges.
• Political tensions
  • In some regions geopolitical rivalry or differences have impacted implementation.
• Environmental and Social Issues
  • The BRI infrastructure projects are criticized for their potential impact on the environment and social spheres.
• Geostrategic Concerns
  • Geostrategic concerns have emerged regarding the BRI, forcing certain nations to reconsider their participation in this initiative.