This is how China could WIN at trade
They're playing for top spot, and they're playing for keeps.
BEIJING — China is expanding its global influence via what some are calling a new 'Silk Road', but it is so much more than it seems.
The Belt and Road project — which the Center for Strategic and International Studies says could cost anywhere between $1 trillion and $8 trillion — aims to connect trade between Asia, Africa and Europe with infrastructure that is built and paid for by China.
According to consulting firm Dezan Shira, the project's financing mainly comes from Chinese state-owned investment funds and development banks, as well as the newly created Asian Infrastructure Investment Bank.
The project also puts the stability of China and neighboring countries, such as Afghanistan, as a priority, according the European Council on Foreign Relations. This is tied to their fears of revolt from separatists in Xinjiang province. China worries they could find a base of operation outside its borders, and are using the project as a means to leverage regional security cooperation.
Several governments questioned the timing of their of Chinese loans, and are now looking to renegotiate the financial terms, according to Project Syndicate.
China has already acquired a 40 year lease on a deepwater port in Pakistan, as well as a naval-base in Djibouti. Future ports in Burma and Kenya may also hold promise for the country. This has led some analysts, such as professor Brahma Chellaney writing in Project Syndicate, to believe Beijing's actual aim is to create a network of naval bases via its Belt and Road trade routes.
NEXT ON TOMONEWS
NASA to install heat shields in the new Orion Spacecraft