The 2nd Belt and Road Forum (BRF) was held on April 27-29, 2019 in Beijing. It was attended by 100 world leaders, 37 heads the state/government, 122 states, and 49 multinational companies, various organizations along with professionals, experts, intellectuals, students and media personnel. It accelerated and shaped the global economy, peace and stability and brightened the regional as well as global economic prospects during which more than US$ 64 billion contracts were signed among different stakeholders. Chinese President Xi Jin Ping delivered the keynote speech and wanted to expand BRI project in the world despite misconceptions.
The BRI was launched in September (2013), in Kazakhstan by Chinese President Xi Jin Ping. It consists of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It aims to build trade and infrastructure networks connecting Asia with Europe and Africa along and beyond the ancient Silk Road routes. Many countries appreciated this initiative and joined it immediately, few countries took time to understand the rationale of BRI and then recognized and joined it. Some countries are still studying it and have not decided yet.
Strategic importance of BRI
Since inception, BRI has delivered a lot, in terms of connectivity, economic activities, trade, and cultural harmony and peace. A network of motorways, railway tracks, sea-ports, etc. is a major Contributor of connectivity among the BRI states, where China has heavily invested. Trade and eco activities have been enhanced among BRI states; in fact, BRI has contributed to the ailing global economy.
China alone contributes one third to the global economy and its soft power and diplomacy have brought many nations closer to each other. China’s peaceful rise has been cited as a role model for the rest of the world. It is a project of the 21st century, inching towards achieving highest levels of regional connectivity, socio-economic prosperity, energy and food security, reduction of poverty, generation of new jobs and above all agricultural revolution. It upholds the characteristics of “Asian Century” and diminishing of “virtual colonization”, It reflects new economic model of productivity and human survival. It showcases new economic thinking through which even political survival may also be attained and subsequently sustained without the support of the west in the days to come .
Prime Minister Imran Khan’s Participation in the 2nd BRF
Prime Minister Imran Khan while attending the 2nd BRF stressed the need for further boosting connectivity under the umbrella of Belt and Road Initiative to promote tourism . Addressing the Leader’s roundtable session of 2nd Belt and Road Forum, the prime minister said that project should also consider digital connectivity, mobility of labour and transfer of skills, cultural links and knowledge and innovation connectivity to further expand its scope. To implement these additional areas of connectivity, the prime minister said that the BRI countries should establish a tourism corridor for cultural tourism exchanges. They should develop programmes for improving the skills of labour from labour surplus countries to assist the labour deficient countries.
Importance of Multilingual Digital Platforms
PM Imran said we should also create multilingual digital platforms for connecting producers, consumers and skilled job seekers and noted that the connectivity of the Gwadar port with China’s Xinjiang region would provide a shorter route for China’s imports, reduce the cost for Chinese companies and develop western China as well.
During his speech PM Imran said: “As the Belt and Road Initiative takes a further concrete shape, I suggest we direct our efforts and focus on the peoples of our countries, and towards addressing impediments on their way to sustainable growth”.
Imran Khan’s Five Point Agenda
He proposed a five-point action plan including joint efforts for mitigating climate change, establishing a BRI tourism corridor for promoting people to people contacts and intercultural understanding, setting up an office of anti-corruption cooperation, creating a poverty alleviation fund, and further liberalising trade and investment flows by encouraging private sector and businesses to collaborate in projects.
Joint Declaration
A joint declaration of the Leaders’ Roundtable of the second Belt and Road Forum for International Cooperation was issued. The main theme of this summit was Belt and Road Cooperation: Shaping a Brighter Shared Future. A total of 283 items of practical out comes were achieved during the preparatory process. Cooperation agreements worth more than 64 billion U.S. dollars were signed at a CEO conference during the forum.
Chinese president Xi said leaders of 37 countries as well as the United Nations and the International Monetary Fund reached extensive consensus on high-quality Belt and Road cooperation at the Leaders’ Roundtable, adding that the consensus will guide global efforts to advance cooperation under the Belt and Road Initiative (BRI) in years to come which must be high standard, people-centered and sustainable development. Moreover, it should be “open, green and clean,” and all interested countries are welcome to join in such cooperation. It upheld that “high quality, reliable, resilient and sustain able” infrastructure must be mantra of the SRI which would be contributing to sustainable development of participating countries and the industrialization of developing countries.
Promotion of economically viable and environment friendly Projects
The leaders underscored the need to promote projects that are “investable, bankable, economically viable and environment-friendly,” and said they welcome developed international and countries investors to invest in connectivity projects in developing countries. They also reaffirmed support for strengthening multilateralism to address global challenges.
| Name of Countries | Research Studies/Policy Centers | Details |
| African | China-Africa Research Initiative at Johns Hopkins University (2018) | Overall debt to African countries estimated at US$143 billion and major share of this debt is owed to non-Chinese lenders mainly Western banks. |
| Latin American | Global Development Policy Centre | Financing from China alone did not appear to be driving borrowers above the IMF’s debt sustainability threshold. |
| South East Asia | Sri Lanka | China owned only 10% of Sri Lankan total debt and handing over Hambantota Port has nothing to do this. |
| Pakistan | Nothing substantially true in terms of so called sever debt trap, Chinese exploitation. Rather it will enhance 2.5 GDP, and generate millions of new jobs. |
BRI: New Model of Connectivity & Development
BRI has introduced a new model of regional connectivity and global economic development. Now China is willing to invest in the least developed countries whereas the other countries avoid investing with the fear of non-recovery. More than half of the world is connected through Chinese mega project i.e. BRI.
Chinese President Xi
During his speech Chinese President Xi presented his five pledges which will be important opportunities for Belt and Road cooperation and the development of the world economy. Deepening China’s reform and opening-up: the country will expand market access for foreign investment, strengthen international cooperation on intellectual property protection, increase imports of goods and services, boost international macro-economic policy coordination, and generally ensure that bilateral and multilateral deals are implemented in good faith and the rule of law is obeyed.
Grand Success of China’s Diplomacy
The 2nd BRF was a great success of China diplomacy based on shared prosperity, regional connectivity having fair and free access to BRI. On the contrary, the Western media and especially the US termed 2nd BRF as a manifestation of China’s “geo-political ambitions” that would force developing countries into so called “debt trap”. Right from the beginning of this project the US has been playing dirty politics to tarnish the image of the BRI and labeled it as a tool to dominate Asian, African and Latin American countries by China.
On its part China and China Development Bank earmarked nearly one trillion US dollars by 2015 for over 900 projects involving transportation, infrastructure and energy. The Chinese Export-import Bank pledged financing for more than 1,000 projects in 49 countries as part of the BRI. The total Chinese financial stake is estimated at about three trillion dollars. Today over 80 countries are directly part of this initiative and even some major EIJ countries have also become part of BRI. A total of around 63 per cent of the world’s population with a collective total of over 21 trillion dollars of global output has already joined with it. More recently, Chinese Foreign Minister Wang Yi stated that “the BRI is not a geopolitical tool but a platform for cooperation’
Biased Western Media
Western media and the US propaganda have no logic in their dis-semination of fake news, documentaries, interviews, articles and misuse of social media about the Chinese government’s so-called grand siege against a specific ethnic minority. Moreover, the Western media and the US should remember that the BRI grand design is unprecedented in scale but not unique. Such grand concepts of connectivity were presented before. In the aftermath of the Iraq invasion, American officials spoke of their goal to “revive ancient ties between South and Central Asia to create new links in the areas of trade, transport, democracy, energy and communications”. Later, in 2011, then Secretary of State Hillary Clinton proposed creating a “new Silk Road an international network of economic and transit connections”. But these proved to be mere statements of intent rather than substantive policies backed up by financial Even Trump’s commitments. Secretary of State Pompeo has announced an enhanced US regional role in the “Indo-Pacific” as “one of the greatest engines of the global economy” for which he announced 113 million dollars in new initiatives, a measly amount compared to China’s trillion dollars investments.
China is a reality in term of economic and trade supremacy. Instead of working jointly for greater socio-economic prosperity and international connectivity, the US has resorted to building military alliances and trade wars to contain and confront China. A key part of this strategy is to demonise China as a “predatory state” that is using the BRI to entrap poor countries through increasing their debt burden. American-dominated international financial institutions like the IMF and the World Bank are being used to spread such allegations.
By projecting the BRI as a geopolitical power grab by China to challenge the US belies its real purpose and exposes America’s own vulnerabilities in a changing world.
New York Consultancy/ the Rhodium Group Research Reports (2007-2018)
The New York Consultancy/the Rhodium Group Research Reports (2007-2018) have reconfirmed that China is ready to renegotiate or write off debts incurred by other countries for its belt and road infrastructure projects and only rarely seizes assets. The Rhodium Group’s research studied 40 cases of external debt renegotiation between (2007-2018) and found there was only one confirmed case of asset seizure in Sri Lanka. China was involved in debt renegotiations with 24 countries in Asia, Africa and Latin America. It had renegotiated about USS50 billion of loans and in most cases, debts had either been written off or payment was deferred. Cuba had US$2.8 billion in debts written off 2010, while last week Ethiopia announced that Beijing had forgiven interest owed on belt and road loans.
The study further said debt forgiveness was usually driven by Beijing’s desire to improve relations or relieve acute financial distress and was often accompanied by extra bans to fund more infrastructure projects. At last year’s Forum on China-Africa Cooperation Beijing wrote off US$7 million of Botswana’s debt, while agreeing to lend an undisclosed sum to finance new infrastructure projects. China agreed to write off US$40 million Zimbabwe loans, but rejected a request for a US$I .5 billion rescue packages in 2015. However, despite these fears and warnings from the US and other Western countries, the project has so far been endorsed by 126 countries, including Italy the first Group of Seven country to sign up. So, there is no truth in the Western media propaganda of “predatory debts” under the BRI. China does not believe in any kind of dominance or dictation because the countries involved are not passive and unwitting recipients of Chinese designs in the BRI. Beijing is often the convenient lender of last resort for projects that governments are deter- mined to finance. The Sino-Serbian “friendship bridge” in Belgrade is one of the prime examples of mutual consultation under the umbrella of the BRI. It is built by the China Road and Bridge Corp and financed with a Chinese loan, it was delivered on time, at a reasonable price, and serves a clear economic purpose, slashing commuters’ travel time across the Danube from more than an hour to just 10 minutes.
BRI: Best Hope for Global Development & Survival of Humanity
I personally believe that BRI is the best hopes to achieve and secure a just and equitable world which is not dominated by only a few. Only in such a world will human dignity flourish. Moreover, there is comparison between the BRI and US Marshall Plan. The U.S. (1948-1951) transferred $13 billion ($100-115 billion in current prices) to Western Europe for reconstruction. Whereas, China (2014-2018) financed an estimated $448 billion in 64 BRI partner countries and is estimated by Chinese officials to eventually involve $1 trillion, roughly ten times the size of the Marshall Plan.
Philosophical Differentiation
| Wesiorn/lmperialism | Chinese Characteristics/BRI |
| Hegemonic globalization led by the West and the US have tried to disseminate their own ideas and methods in the fields of politics, economics and technologies. It strengthened their vested interests based on geopolitical and military dominance. Resultant decline to globalization, international trade and cooperation and above all trade wars. | Under flagship project of the BRI, China sees relationships among BRI states as a partnership not competition. It has no political agenda or military need to be imposed on participating countries of the BRI. It believes in participatory approach for conflict resolution. Most recent Malaysian dispute was resolved and revised extensively for the good of both parties. |
| US solely excels in Unipolar frame of mind | Establishment of Asia Infrastructure Investment Bank (AIIB), the Brazil, Russia, India, China and South Africa (BRICS) network and the Shanghai Cooperation Organisation (SCO), China has adopted a shared approach. |
Concluding Remarks
The 2nd Belt and Road Initiative (BRI) Forum has made it clear that the program now seeks to influence technology and intonational governance. Chinese President Xi Jinping says in a speech that, through the Belt and Road Initiative, China would “strengthen cooperation in customs, taxation and audit oversight” and pursue cooperation on technological development The BRI started six years ago with a focus on building out rail and maritime trade routes connecting China with central Asia, Europe and Africa. In March (2019) Italy became the first G-7 nation to officially endorse the Belt and Road Initiative by signing a memorandum of understanding Luxembourg signed its own agreement with Beijing a few days later. Switzerland has also formalized its support. Swiss Confederation President Ueli Maurer was one of nearly 40 national leaders named in a joint declaration for the said forum. Beijing has gained more international support for the BRI despite criticism from the likes of Washington. Russian President Vladimir Putin and other leaders praised the initiative, is a setback for the Trump administration, which is trying to discourage other countries from participating.
On the false allegation and misconceptions about Chinese debt trap, Chinese President Xi promised to promote high financial, environmental and other standards in response to complaints about debt and other problems. Now it is hoped that it has the potential to heighten tensions with Washington by attracting more participants. Chinese President Xi also tried to dispel complaints that Belt and Road does little for developing countries that have borrowed from Beijing.
Western and the US media also complain that major share of the work/ project goes to Chinese state owned companies and the initiative might lead to corruption and environmental damage. The US, Japan and India worry that Beijing is eroding their influence. American officials have warned other governments about potential debt problems and China’s possible political motives. But acceptance of the BRI is on the rise and more and more countries across the world are joining it.
On its part Xi’s government is trying to revive momentum for the BRI after the number of new projects slumped last year. That followed official announcements that Chinese lenders would examine borrowers more closely and concerns by some governments about Beijing’s rising influence.
Responding to this concern, Chinese President Xi promised to embrace intonational financial, environmental and other standards. He pledged to work more closely with multinational entities and to open projects dominated by Chinese state-owned companies wider to private and foreign contractors. Despite U.S. opposition, the Chinese government says the number of countries have signed agreements to support the initiative has risen to 115 from 65. The Chinese leader repeated his promise to adopt “widely accepted rules and standards” and encourage Belt and Road countries to follow global standards for project development, purchasing and operations.
According to China Central Bank Governor, Chinese lenders have provided $440 billion in financing for Belt and Road projects and Beijing is ordering Chinese state-owned companies to pay more attention to local economic development, benefits for local residents and environmental protection. Xi’s government also has tried to defuse tensions with Belt and Road participants by renegotiating debts or offering other concessions.
Successful conduct of 2nd BRF demonstrated victory of Chinese diplomacy. Thirty-seven heads of state (including Russian President Vladimir Putin and Italian Prime Minister Giuseppe Conti, the first G7 country to endorse this Chinese policy) and some five thousand foreign officials and business delegates arrived in person. Twelve of Europe’s 36 governmental heads were there, as well as nine of ten ASEAN state leaders. Chinese media detailed the over 170 agreement and with 125 countries was inked during two-day BRF. President of China announced that $64 billion in deals and “283 deliverables” were signed at the forum, and a few days later on May 1st, China signed a memorandum of Understanding Switzerland to collaborate on trade, investment, and finance for BRI projects.
Regional recognition and global realization towards the benefits of the BRI is one the increase by each passing day. Countries that abandoned China after “One Belt One Road’s first summit in 2017 have re congregated under the Chinese flag in mutual support of its second summit event. It includes new member Switzerland, as well as Malaysia and Myanmar who previously complained to the US and the IMF that investing in China caused them to fall into a “debt trap.”
The way forward for the BRI is based on further investment and financial cooperation/ support that requires all parties to jointly build a man-interest community to share the expenditures, risks, and benefits. the same time, emphasis must be placed on market-based financing active use of the Chinese Yuan to incite greater amounts of local savings and international capital.
During the 2nd BRI China drastically changed its tone and shifted its focus to resolving the doubts in various countries. For example, it proposed to conduct a joint study with the World Bank on environmental and social standards of BRI. Building a framework for debt sustainability analysis to prevent debt risk” was its explanation for concerns regarding BRI’s transparency and ideology export. The draft communique also clearly states that the 37 ‘global leaders attending the April 25-27 summit will reach an agreement on project financing issues, comply with global debt targets, and promote sustainable development.
Biased Western media often publish fake news about so called human rights violation, torture tac tics, siege and seizure of Muslim ethnic community, demolition of holy mosques and systematic marginalization process because of the enhanced popularity of the BRI and Silk Road projects of China in most of the Muslim countries.
During the second BRI summit, China did a lot of explanatory work to quell doubts of the outside world. Countries have also accepted China’s explanations, believing that China’s use of comprehensive transportation and infrastructure to bring the continents of Europe and Asia closer is beneficial to deepening trade and human contact. The power struggle between the two superpowers will inevitably bring opportunities to many countries in the world seeking financial support.
Interestingly, Russian President Russia appears to be shifting its stance on China’s Belt and Road development initiative in Eurasia, envisioning a bigger role for itself in the process. He also said the Belt and Road initiative is “intended to strength en the creative cooperation of the states of Eurasia.” But Putin’s enthusiasm for participating came with a polite demand, asking China to accommodate Russia’s Eurasian Economic Union (EAEU). It was originally meant to be a Russia-led alliance on political, trade and infrastructure construction issues in Eurasian countries. But the plan has suffered because of Moscow’s paucity of funds.
Belt and Road Initiative (BRI) has developed a new concept for achieving sustainable development in the world. It has no political agenda or geopolitical ambition to control fates and geographies of other governments. The BRI has institutionalized new model of regional cooperation by setting win-win proposition for all. It is open, transparent and supportive to all the countries especially developing and least developed countries around the globe. Money is a precious commodity and tool for political dominance in the modern world as projected by the West and the US. But China considers money as instrument to achieve collective human prosperity, human dignity and the last but not the least, socio-economic integration which must not be used for any kind of political blackmailing.
The BRI is the only hope for achieving the desired goals of qualitative life and safer world in the future where “eagle” will not in search of political dominance/ destruction through its untamed economic sanctions and wars too. BRI is the only functional world platform where economies are accelerated through purring of huge foreign direct investments and technical assistance. BRI is the only active global financial podium where interactive and integrated policies are formulated to erase poverty, ignorance, hatred and ambiguity.
China launched the “Belt and Road Initiative” initiative in 2013. According to Chinese official figure (2018-19), the total value of the project is $3.7 trillion, spanning dozens of countries in Asia, Europe, Africa, Oceania and South America. At the first BRI summit, China had a sense of expansion, propagating the Chinese model, and espousing that China would become the new leader of globalization. That set off alarms in some countries. During the trade war, the United States raised various criticisms questioning China’s “red expansion,” which also caused some BRI countries to waver. Factually, the BRI has “multiplier effect’ on all the members countries and “push-forward orientation to dismantle clutches of biased ideologies, divided economies, separated political philosophies and dangerous social trends in the world and jointly work for a equitable and safer world in the days to come.
