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In #RealPolitikWithChax series, this thread (Th-3) is to analyse China's ambitious OBOR project collected from different reports from past 2-3 years on the subject.
I will briefly discuss what is OBOR,it's magnitude & why some people feel it's bad bet for China.
Lets begin.
In #RealPolitikWithChax series, this thread (Th-3) is to analyse China's ambitious OBOR project collected from different reports from past 2-3 years on the subject.
I will briefly discuss what is OBOR,it's magnitude & why some people feel it's bad bet for China.
Lets begin.
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Launched in 2013, the Belt and Road Initiative (BIR/OBOR) aims to embolden China’s connectivity with the world. As of end of 2019, the plan supposedly touches 138 countries with a combined Gross Domestic Product of $29 trillion and some 4.6 billion people.
Launched in 2013, the Belt and Road Initiative (BIR/OBOR) aims to embolden China’s connectivity with the world. As of end of 2019, the plan supposedly touches 138 countries with a combined Gross Domestic Product of $29 trillion and some 4.6 billion people.
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The OBOR spans across various projects designed to improve transportation of goods, investment, and people to people relationship.
In 2015, Chinese Foreign Ministry formulated below specific policy goals for the initiative
The OBOR spans across various projects designed to improve transportation of goods, investment, and people to people relationship.
In 2015, Chinese Foreign Ministry formulated below specific policy goals for the initiative
4/n
Beijing has infused huge capital into public financial institutions like CDB & EXIM with low borrowing costs and access to disburse loan from the People’s Bank of China, enabling them to give away loans to Chinese companies working on BRI projects.
Beijing has infused huge capital into public financial institutions like CDB & EXIM with low borrowing costs and access to disburse loan from the People’s Bank of China, enabling them to give away loans to Chinese companies working on BRI projects.
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Part of this initiative is CPEC , a 3K Km corridor that runs from China’s Kashgar to Pakistan’s Gwadar including highways, railways, pipelines, and optical cables, and most importantly power plants. It's Seen as a chance for economy boom by Pakistan.
Part of this initiative is CPEC , a 3K Km corridor that runs from China’s Kashgar to Pakistan’s Gwadar including highways, railways, pipelines, and optical cables, and most importantly power plants. It's Seen as a chance for economy boom by Pakistan.
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2 more important projects of OBOR as analyzed by CSIS are
- Khorgos Gateway
at the China-Kazakh border , predicted to be the New Dubai in as early as 2016
-and the Padma bridge in Bangladesh part of Asian Highway 1, a road network conceived by the UN in the late 1950s
2 more important projects of OBOR as analyzed by CSIS are
- Khorgos Gateway
at the China-Kazakh border , predicted to be the New Dubai in as early as 2016
-and the Padma bridge in Bangladesh part of Asian Highway 1, a road network conceived by the UN in the late 1950s
Source of the above pictures and facts :
https://www.csis.org/analysis/obor-ground-evaluating-chinas-one-belt-one-road-initiative-project-level
https://chinapower.csis.org/china-belt-and-road-initiative/
https://www.csis.org/analysis/obor-ground-evaluating-chinas-one-belt-one-road-initiative-project-level
https://chinapower.csis.org/china-belt-and-road-initiative/
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Although trouble is looming on China at home. As Xi has risen into power OBOR has absorbed more resources.
It has become an unchecked ambition of the president,so much so that in 2017 the government had to take strong measures to enhance regulation to up the profitability
Although trouble is looming on China at home. As Xi has risen into power OBOR has absorbed more resources.
It has become an unchecked ambition of the president,so much so that in 2017 the government had to take strong measures to enhance regulation to up the profitability
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Also
1. OBOR has been an epitome of corruption , seen as a tool for Chinese official to involve in embezzlement .
2. Countries involved in infra projects are buying materials from China but on money lent by them, leading to no serious profit margin.
Also
1. OBOR has been an epitome of corruption , seen as a tool for Chinese official to involve in embezzlement .
2. Countries involved in infra projects are buying materials from China but on money lent by them, leading to no serious profit margin.
9/n
Even China seems more interested in taking over the control of infrastructures in the short term, than getting the money back which is stuck due to long term nature of infra projects.
Below article explains pt 7,8,9 in detail
https://www.cadtm.org/The-Domestic-Consequences-of-China-s-One-Belt-One-Road-Initiative
Even China seems more interested in taking over the control of infrastructures in the short term, than getting the money back which is stuck due to long term nature of infra projects.
Below article explains pt 7,8,9 in detail
https://www.cadtm.org/The-Domestic-Consequences-of-China-s-One-Belt-One-Road-Initiative
10/n Apart for known hassles for CPEC in Balochistan , OBOR is also facing troubles in Kazakhstan where govt is facing heat from people for giving away easy lease to China, adding to fear of Chinese dominance: https://www.orfonline.org/expert-speak/rising-anti-chinese-sentiments-in-kazakhstan/
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US think tanks believed China was playing with a flawed idea of solving geo-political issues by infusing money from their central bank,only to pop up the debt gap.
The sovereign debt of 27 countries is regarded as “junk” by the 3 agencies & another 14 have no rating at all.
US think tanks believed China was playing with a flawed idea of solving geo-political issues by infusing money from their central bank,only to pop up the debt gap.
The sovereign debt of 27 countries is regarded as “junk” by the 3 agencies & another 14 have no rating at all.
12/n
source of above:
https://foreignpolicy.com/2018/12/06/bri-china-belt-road-initiative-blunder/
https://www2.deloitte.com/content/dam/insights/us/articles/4406_Belt-and-road-initiative/4406_Embracing-the-BRI-ecosystem.pdf
Having said all these,given the current geo-political storm Xi is facing due to Covid pandemic & border conflicts, OBOR is likely to be more catastrophic than strategic dominance for China.
Only time will tell
source of above:
https://foreignpolicy.com/2018/12/06/bri-china-belt-road-initiative-blunder/
https://www2.deloitte.com/content/dam/insights/us/articles/4406_Belt-and-road-initiative/4406_Embracing-the-BRI-ecosystem.pdf
Having said all these,given the current geo-political storm Xi is facing due to Covid pandemic & border conflicts, OBOR is likely to be more catastrophic than strategic dominance for China.
Only time will tell
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@SnXeha @AlphaMaximus9 @ShubhroMukherji @you_know_meAV @Kobra_chetkin
