PerspectiveChina’s Worldwide Investment Project Is a Push for More Economic and Political Power

Inspired by the ancient Silk Road, China is investing in a massive set of international development projects that are raising concerns about how the country is expanding its power around the world.

Initially announced in 2013 by Chinese President Xi Jinping, the so-called “Belt and Road Initiative” has China planning to invest in economic development and transportation in more than 130 countries and 30 international organizations. Projects range across Asia, but also include places in Africa, the Caribbean, Europe and South America.

Amitrajeet A. Batabyal writes in The Conversation that wWith a projected cost of more than US$1 trillion, it may be the most ambitious infrastructure project undertaken in human history. The country hopes it will all be completed by 2049, the 100th anniversary of the founding of the People’s Republic of China. My research in international economics with particular reference to China shows that Beijing has both economic and political plans for how these investments will pay off.

Batabyal adds:

The U.S. sees Chinese expansion as a security concern and has urged India to serve as a strong example that a Western-style democracy and society can succeed in Asia. In addition, the U.S. has proposed working with Australia, India and Japan on a massive development effort to rival China’s power.

The European Union is also unsure about China’s political intentions. Some of its members have joined individually, but others have expressed concerns that Chinese plans often overlook environmental and social sustainability – and that its bidding process is not sufficiently open to the public. There is some general European concern that China is seeking to divide Europe politically.

Recent reports suggest that Chinese investment in the Belt and Road Initiative – and international interest in Chinese funding – is slowing. In part that may be because, predictions and analysis aside, nobody knows for certain what China is aiming for – except to boost its own side in its rivalry with the U.S.