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Constructing connectivity: A decade of China’s Belt and Road Initiative in the Global South

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Yingshi Gao, CGTN Journalist

It has been ten years since China initiated the Belt and Road Initiative (BRI). This September, the Jakarta-Bandung High-Speed Railway in Indonesia opened to traffic, drawing a barrage of international media spotlight and a fresh wave of skepticism from the West. Many outlets in the Western media sphere have cast a dubious eye on the economic viability of this railway, igniting the discourse around the purported ‘debt trap’ diplomacy often associated with the BRI. Echoes of neo-colonialism, too, resonate through the hallways of global dialogue, painting China’s vast infrastructural endeavor in shades of imperial ambition.

Both statistical data and local leaders have rebuffed this portrayal. Take the example of sub-Saharan Africa; in 2022, the debt-to-GDP ratio in this region stood at approximately 56.3%, whereas globally, it was 247%.

In 2018, former Liberia Public Works Minister W. Gyude Moore penned an article and commented, “The language of ‘debt-trap diplomacy’ resonates more in Western countries, especially the United States, and is rooted in anxiety about China’s rise as a global power rather than in the reality of Africa.” In 2022, a study from the Centre on Global Energy Policy at Columbia University also suggested that private sector maneuvering rather than Chinese scheming is more likely to induce a wave of defaults.

Another popular narrative describes China as using ‘untransparent’ debt strategically to aid ‘authoritarian states.’ Some argue that “Chinese aid poses a challenge to conditional aid, thus weakening democracy promotion.” Professor Andreas Freytag at the University of Jena, Germany, did research on this issue in 2022. His research discovered that Chinese aid correlates with a neutral or positive influence on the endorsement of democracy. Moreover, individuals displaying favorable sentiments towards China appear more inclined to cherish democratic values. On the other hand, the US’s favorable views do not consistently influence democratic support.

Compared to debt, the more urgent problem faced by the Global South is the inability to provide sufficient public goods, hindering faster development in these countries. In Africa’s energy sector, building a reliable electric system has been one of the significant challenges for decades. Access to electricity in sub-Saharan Africa was only 47% in 2022, forcing locals to buy their own electric generators, increasing production costs, and generating more pollution.

This is something that Cao Fengze, a Chinese opinion leader and engineer, noticed. When he first arrived in Zambia, participating in the building of a water dam, he tried to buy an air fryer. He found the price of the air fryer to be much higher than expected. Cheaper air fryers were also available (usually less than 200 RMB), but everyone advised him not to buy one since the electrical power system in Zambia was highly unstable, and having multiple power outages on a daily basis was very normal. After a few ups and downs in voltage, lower-quality appliances would burn out quickly. I interviewed him about his fieldwork. From his perspective, establishing a local industrial system is only possible with a stable energy supply, and a gravity dam represents the most cost-effective power scheme for Zambia. Once constructed, a gravity dam requires less maintenance and still has a long lifespan. In his words, “If I embed a coin in the dam, the next person to see the coin may be from many centuries later.”

The lack of enough public goods also greatly impacts Zambia’s agricultural sector. For instance, the price variances between Zambia and its potential market, East Africa, are significant. Crops such as maize and soybeans can be sold at higher prices in Nairobi and Kampala. In June 2022, maize prices in Nairobi crossed $500/Mt, while the price in Lusaka was just over $200/Mt. However, farmers in Zambia are not able to benefit from these potential profits due to inefficiencies in cross-border markets and transport logistics. This forms a negative feedback loop: constrained by poverty, Global South nations often find themselves unable to invest in building and maintaining interconnecting highways. Without these crucial transport links, they remain trapped and mired in poverty, unable to unleash their economic potential.

But how to break that loop? In the eyes of the Chinese, the answer is not foreign food aid but vast investment in public goods to build a system that can generate blood for itself.

That is also why China has focused on building electric and transportation facilities among the BRI participating countries.

To tackle the power deficit, China funded and helped to build the Kafue Gorge Lower hydropower station, the largest power project undertaken by Zambia since its independence. Five new Chinese-built generators in this dam added 750 megawatts to the country’s national grid, adding nearly a third of this country’s electric capacity. Zambian President Hakainde Hichilema also participated in the commissioning ceremony and praised that both countries completed the project in ‘an ingenious way.’

Chinese infrastructure projects are more than just building roads and railways but aim to establish a systematic base for future development.

Building water dams, for example, has helped local workers learn new skills through participating in the construction work. The local government has also benefited from working closely with China in managing big projects, aligning different interests, and ensuring that everything runs smoothly.

It’s like fine-tuning a well-oiled machine. This isn’t just about making sure that trade keeps flowing but also about growing skill sets and laying down a foundation for the future.

Despite these advantages, the Belt and Road Initiative still has room for improvement. For instance, local communities affected by the projects have called for equal compensation. Moreover, there have been calls for enhanced transparency and adherence to stricter labor practices. Addressing these concerns will make the BRI a more robust and mutually beneficial initiative.

DIPLOMACY

Athens postpones Mitsotakis-Erdoğan meeting after Imamoglu arrest

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The arrest of Istanbul Mayor Ekrem Imamoglu has shaken diplomatic relations between Türkiye and Greece, leading Athens to announce the postponement of a planned meeting between the leaders of the two countries.

Greek government spokesperson Pavlos Marinakis stated, “Given these developments, it is becoming difficult to organize the High-Level Cooperation Council between Greece and Türkiye immediately.”

The High-Level Council consists of a series of meetings aimed at improving relations through “soft politics,” as progress on contentious issues such as territorial disputes has stalled.

As Kathimerini recently reported, the meeting planned between Greek leader Kyriakos Mitsotakis and Recep Tayyip Erdoğan on April 8 was not yet finalized due to the political crisis in Türkiye, even though negotiations between Athens and Ankara had reached their final stage.

The spokesperson added, “We are monitoring the developments in Türkiye. The situation remains fluid and concerning. Our stance on Imamoglu has not changed. Concessions on the rule of law and political freedoms are unacceptable, and convincing answers are needed for any concessions made.”

Marinakis mentioned that the issue could be discussed by the foreign ministers of both countries at the NATO foreign ministers’ summit in Brussels in early April.

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Trump’s proposed fees on Chinese ships threaten US maritime industry

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Industry executives stated on Monday at a US Trade Representative (USTR) hearing that President Donald Trump’s plan to revitalize the US shipbuilding industry is likely to backfire, as it relies on proposed fees for China-linked vessels that would harm domestic ship operators, ports, exporters, and employment.

The discussion centers on the stacking of fees on Chinese-built ships, which could exceed $3 million per visit to US ports. The Trump administration claims these fees will deter China’s increasing commercial and military dominance in open seas and encourage domestic shipbuilding. US steelworkers’ unions, US steel manufacturers, and Democratic lawmakers support this effort, saying it will revitalize the domestic industry.

However, this idea has created a shockwave in the local maritime industry, as it threatens the survival of the same shipping companies and customers that would increase the demand for orders from the US shipyards Trump wants to rebuild.

“The effort to strengthen American shipbuilding would not serve the national interest if it inadvertently destroyed American-owned carriers,” said Edward Gonzalez, CEO of Seaboard Marine, the largest US international ocean cargo carrier, based in Florida, on Monday.

Like many US operators, Seaboard relies on Chinese-made ships. According to maritime data provider Alphaliner, its fleet of 24 ships includes 16 Chinese-built vessels.

US ship operators said that fees on China-linked ships would push more US cargo to foreign-capitalized ocean transport companies, which have the resources to better handle the change.

According to the USTR, China’s share of the shipbuilding market rose from under 5% in 1999 to over 50% in 2023.

Speakers said that US shipyards produce fewer than 10 ships a year, while China produces 1,000.

Meanwhile, industry executives noted that shipbuilders in Japan and Korea would struggle to meet demand in the years it would take for US shipyards to build capacity.

Kathy Metcalf, CEO of the Chamber of Shipping of America, said that replacing existing Chinese-built ships is not like flipping a light switch. “Punishing China and the US maritime transport system is not an acceptable outcome,” she said.

US ship operators support key American industries such as manufacturing, mining, and agriculture by transporting goods on inland waterways, along the Great Lakes, and up and down the country’s coasts.

Agricultural exporters are struggling to book ships after May due to uncertainty in the USTR plan, while coal industry representatives also state that the fees make it difficult to offer their goods to the global market.

“I urge you to ensure that your efforts to increase domestic shipbuilding do not come at the expense of farmers’ access to the market,” said Mike Koehne, a board member of the American Soybean Association, who grows soybeans and corn in Indiana.

Nate Herman, senior vice president of policy for the American Apparel & Footwear Association, which is dependent on imports, said port fees would lead to job losses for American workers, higher costs for American exports and imports, and scarcity and rising prices for American consumers.

He cited a new study by various trade groups showing that high costs from port fees would cause US exports to fall by almost 12% and GDP to fall by 0.25%.

“Hardworking American families cannot afford more price increases and product shortages, and American manufacturers and farmers cannot afford to lose more export markets,” Herman said.

Representative Rosa DeLauro and 62 other Democrats in Congress supported the proposed fees and other “swift and decisive” actions in a letter sent to US Trade Representative Jamieson Greer on Monday, saying that China’s dominance in the sector poses “unacceptable costs and risks” in terms of job losses and critical manufacturing capacity.

They requested the USTR to provide a facility that would allow firms to avoid fees by routing their cargo through Mexico or Canada.

The USTR, which will hear more comments at a hearing on Wednesday before finalizing the proposal under the Unfair Trade Practices Act, did not immediately respond to requests for comment.

In the current proposal, to completely avoid fees, ship operators must be based outside of China, have less than 25% of the ships in their fleet built in China, and not plan to order or take delivery from Chinese shipyards in the next two years.

A draft executive order seen by Reuters earlier this month would further narrow this limit by imposing port fees on all fleets with Chinese-built ships.

Shipowners could try to minimize the blow by using larger ships and limiting calls to major US ports, but this could put those ports in a difficult situation and lead to supply chain-related stress.

According to ship and port operators, ship operators could also shift cargo bound for the US to ports in Canada and Mexico and rely on trucks and trains to complete the journey, but this measure could also clog border crossings and cause more infrastructure wear and tear.

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US expresses optimism after Riyadh talks with Russia

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According to a CBS News report citing informed sources, the technical team from the US that participated in talks with a Russian delegation in Riyadh submitted an “optimistic” assessment to the administration of President Donald Trump.

Reuters reported that discussions between Russia and the US included steps to support Trump’s efforts to end the conflict, including a potential ceasefire in the Black Sea. Kremlin spokesperson Dmitry Peskov confirmed that the Black Sea initiative was on the agenda in Riyadh.

Peskov stated that maritime security was a primary focus. Bloomberg added that technical details regarding a 30-day halt in attacks on energy facilities were also discussed.

On March 24, Trump addressed the topics discussed in Riyadh, saying, “Right now, we’re talking about territories. We’re talking about border lines, power, and ownership of power plants.”

The US president also expressed general satisfaction with the progress of the talks and praised Russian President Vladimir Putin for his participation.

A White House source told Reuters that progress had been made in the Riyadh meetings and that a “positive announcement” was expected soon. Peskov added that Putin would be briefed immediately on the outcomes of the Russian and American delegations’ discussions.

Additionally, RIA Novosti reported, citing a source, that the Russian delegation was in good spirits following the talks with US representatives in Saudi Arabia.

The meeting between the two delegations lasted over 12 hours on March 24 at The Ritz-Carlton in Riyadh, with three breaks. The discussions were closed to the press.

The Russian side was represented by Sergey Beseda, advisor to the director of the Federal Security Service (FSB), and Grigory Karasin, head of the International Affairs Committee of the Russian Federation Council. Russian Deputy President Yury Ushakov noted that these individuals were experienced diplomats well-versed in international affairs.

According to foreign media reports, the US delegation included Andrew Peek, senior director for Europe at the National Security Council, and Michael Anton, director of policy planning at the State Department, among others.

Russian Foreign Ministry spokeswoman Maria Zakharova emphasized that while major breakthroughs should not be expected from the Riyadh talks, it was important to recognize that work had been done across multiple areas.

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