Explained | What is the status of China’s Belt and Road Initiative in South Asia?

Source: The post is based on the article “Explained | What is the status of China’s Belt and Road Initiative in South Asia?” published in The Hindu on 6th July 2022.

What is the News?

G7 countries have recently unveiled their $600-billion plan called the Partnership for Global Infrastructure and Intelligence(PGII) to build infrastructure projects in developing and middle-income countries. This is being seen as a counter to China’s Belt and Road Initiative (BRI).

What is the Belt and Road Initiative(BRI)?

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How has BRI progressed since its launch?

More than 60 countries have now joined BRI agreements with China with infrastructure projects under the initiative being planned or under construction in Asia, Africa, Europe, and Latin America.

However, in recent years, the BRI seems to have experienced a slow down as annual Chinese lending to countries under the initiative slimmed from its peak of $125 billion in 2015 to around $50 to 55 billion in 2021.

Moreover, the West has accused China of debt-trapping by extending “predatory loans” that force countries to cede key assets to China. 

What is the progress of BRI in South Asia?

Pakistan: In 2015, China unveiled the BRI’s flagship project and its biggest one in a single country — the China-Pakistan Economic Corridor(CPEC). However, since its inception, the CPEC has been met with multiple roadblocks and China seems to have reduced its $62-billion pledges to the project.

Sri Lanka: Hambantota Port is a deep seaport on the world’s busiest east-west shipping lane, which was meant to spur industrial activity. The port had always been secondary to the busy Colombo port until the latter ran out of capacity.

The ​​Sri Lankan government took $1.4 billion in Chinese loans for the port’s expansion. Unable to service the huge loan, the government handed Hambantota port to a Chinese state-owned company on a 99-year lease in 2017.

Nepal: Nepal formally joined the Belt and Road Initiative in 2017 submitting a list of 35 infrastructure projects it wished China to finance. 

After the Chinese request, Nepal shortlisted nine projects including an ambitious trans-Himalayan rail road from Nepal to China, construction of roads, laying of power transmission lines and hydropower projects.

Five years after signing the framework agreement, work has not been started on any of the nine projects as of May 2022.

Afghanistan: Afghanistan has not comprehensively been brought into the BRI, despite a Memorandum of Understanding (MoU) to promote BRI projects being signed with China in 2016.

Maldives: Most of China’s infrastructure investment happened in the Maldives. One of the most prominent BRI projects undertaken in the Maldives is the 2 km long Sinamale bridge or the China-Maldives Friendship Bridge.

However, Maldives current regime has tried to distance itself from the BRI focusing more on its ‘India First’ policy.

Bangladesh: Bangladesh joined BRI in 2016. Multiple studies show that Bangladesh has been able to benefit from the BRI while maintaining diplomatic and strategic ties with both India and China.

But, Bangladesh has also avoided Chinese interference in its internal matters by stressing its sovereign power when China warned it about joining the Quad.