Just a bump in the road, or is China’s global infrastructure drive really turning out to be a highway to nowhere? Only time will tell:
CHINA is facing growing controversy surrounding the debts associated with Belt and Road projects. Pakistani politicians are warning that if they are forced to go to the International Monetary Fund for assistance, the financing arrangements of the China Pakistan Economic Corridor will have to be fully disclosed.
At the same time Malaysia’s new Prime Minister Mahathir Mohamad has ordered a temporary halt to construction work on the East Coast Rail Link (ECRL), and wants to use a planned official visit to China in August to renegotiate some of the terms of the deal.
Meanwhile China has hit back at US media articles on the so called “debt trap” that it has allegedly created in Sri Lanka, with Foreign Ministry spokesperson Lu Kang saying that the reports are “a gross distortion of facts”, and are “either irresponsible or engineered by people with ulterior motives”.
These controversies are mirrored by similar concerns across Africa about the build-up of debt associated with the Belt and Road. Nonetheless, many countries still see the Belt and Road Initiative as an opportunity to spur economic development. China clearly views some of the hostile media coverage as something that has to be viewed in the context of the deteriorating relationship with the United States on trade issues.