How does the belt and Road Initiative Benefit China?

Through the rapid expansion of its demand for imports, China propels economic growth in the B&R countries that export goods to China. Under the cooperation framework of the Belt and Road Initiative, China supports developing countries such as those in Asia, Africa and Latin America to invest more in infrastructure.

How does the BRI benefit other countries?

BRI transport projects can expand trade, increase foreign investment, and reduce poverty—by lowering trade costs. If fully implemented, BRI transport projects could increase trade between 1.7 and 6.2 percent for the world, increasing global real income by 0.7 to 2.9 percent.

Is China’s “debt-trap diplomacy” a myth?

In our report, recently published by Chatham House, Lee Jones and I argue, however, that the assumptions underlying Australia’s response to the BRI are mistaken. China’s “debt-trap diplomacy” is a myth. Take Sri Lanka’s Hambantota Port. It is portrayed as the case par excellence for China’s debt-trap diplomacy.

Does China have a debt-trap diplomacy problem in Sri Lanka?

Take Sri Lanka’s Hambantota Port. It is portrayed as the case par excellence for China’s debt-trap diplomacy. The conventional account is that China lent money to Sri Lanka to build the port, knowing that Colombo would experience debt distress and Beijing could then seize it in exchange for debt relief, permitting its use by China’s navy.

How does China deal with international debtors?

In the past, China has responded to the debtors inconsistently and hasn’t followed best practices adopted by international lenders working with poor countries. Sometimes, the debt has been forgiven; other times, disputed territory or control of infrastructure has been demanded as recompense.

What are some examples of China’s diplomacy traps in Africa?

Djibouti found itself saddled with Chinese debt, hence it has been forced to lease one of its military bases to Communist China for just US$20 million a year. Angola, Africa’s second-biggest oil producer, is one another example of the debt-trap in China’s diplomacy.