{"id":12073,"date":"2019-08-19T11:43:05","date_gmt":"2019-08-19T09:43:05","guid":{"rendered":"https:\/\/gbp-international.com\/?p=12073"},"modified":"2019-08-19T11:43:05","modified_gmt":"2019-08-19T09:43:05","slug":"english-china-belt-road-projects-under-re-evaluation-how-to-deal-with-china","status":"publish","type":"post","link":"https:\/\/perfectoholic.pro\/gbp\/english-china-belt-road-projects-under-re-evaluation-how-to-deal-with-china\/","title":{"rendered":"China Belt & Road Projects under re-evaluation – how to deal with China?"},"content":{"rendered":"\n

Take-aways\nfrom the Belt & Road Conference in Warsaw in June 2019<\/strong><\/p>\n\n\n\n

This\narticle re-evaluates the Belt & Road Initiative from China and presents\nsome of the key-take-aways from the Belt & Road Conference in Poland\nrecently.<\/p>\n\n\n\n

Introduction<\/strong><\/strong><\/p>\n\n\n\n

The Belt & Road Project is an ambitious global project for\nconnectivity and infrastructure. Many see the Belt & Road Initiative (BRI)\nas part of China\u2019s masterplan to increase influence in world politics (again)\nwith new financial means and the overwhelming power of the Chinese global\nplayers in infrastructure who can built anything from schools to harbors,\nairports, railroads, power plants and highways.<\/p>\n\n\n\n

China is fighting hard to push the BRI forward despite evidence of\ncountries being caught in the debt trap. After a first wave in Asia and Africa,\nnow China reaches out to East- and West European countries. China made a\ndiplomatic effort to get the BRI accepted in Europe but faced quite some\nopposition by France and Germany. So, it was a big success when President Xi\nsigned a deal with Italy and with that the first crack in the EU wall of solidarity\nwas made. The main argument of the EU to not endorse the BRI in EU was and is\nbased on unfair trade and finance practices by China.<\/p>\n\n\n\n

Example of handling China – the case of\nMalaysia<\/strong><\/strong><\/p>\n\n\n\n

Rather than just saying NO to the project and embarrass the\nstakeholders, the example of the East Coast Railway project (to be financed and\nconstructed by Chinese companies) in Malaysia serves as a good example how\nthings can be managed in a better way. The project was initially signed by the\nprevious government of Malaysia and obviously overpriced and overdesigned –\nthink 1MDB. When the new government under Dr Mahathir took over in May 2018 the\nproject was quickly suspended. Against the background of extensive corruption\nin the previous government, Malaysia questioned the cost and financial terms of\nthe engagement and Prime Minister Mahathir Mohamad was then quick to travel to\nChina and renegotiate the financial terms. Malaysia could simply not afford to\naccept the burdens of BRI projects so important to China, which would lead\nMalaysia to financial distress. But it took the negotiation skills and deep-rooted\nlinks of Dr Mahathir to come back with a more favorable deal for Malaysia and\nto keep a face-saving relationship with China for the future cooperation of the\ntwo countries. <\/p>\n\n\n\n

However, if there are leaders of countries willing to accept the\nhush money and hidden bribes, there is no way to escape the debt trap of these\nmega deals introduced by China. If you look at Africa and other places such as\nSri Lanka the projects are not a showcase for China and the way it bullies\nlocal politics and gets access to important trade routes and natural resources.\nBut if the deals are negotiated fair and square it is business development as\nusual and such agreements can be win-win-scenarios.<\/p>\n\n\n\n

A chance to reconnect between East and West in\ntimes of tensions<\/strong><\/strong><\/p>\n\n\n\n

In Europe the BRI is seen very critical per se and President Xi\nand his advisors are smart enough to sense the growing uneasiness with Chinas\noverseas expansion plans. It serves nobodies interest if the benefits of globalizations\nare being pushed backwards again but it is also time to acknowledge that China\nis a global player fighting for positions. China must be given credit for the\nachievements over the last decades and it is and will continue to be one of the\ntop global players whether anybody likes it or not.<\/p>\n\n\n\n

The present negotiation about trade and tariffs with the USA is\nsurely also a benchmark for trying to reach a fair and square platform for\nfuture BRI engagement. It is really time for Europe to come up with a\nconstructive counter proposal which enhances the BRI elements with such\nelements where the western countries\/companies can add value. On simple brick\nand mortar projects nobody can compete but clever architects, smart designers,\nintelligent software and logistical concepts as well as green technologies from\nEurope are still having competitive advantages over China and the proper way is\nto merge these elements among all the stakeholders.<\/p>\n\n\n\n

The countries which are signing up with China on the BRI are well\nadvised to have a detailed and professional review of the technical, commercial\nand financial proposals and to install a proper project management with checks\nand balances. There must be close monitoring in the execution of projects to\nensure that there is no meddling around after contracts have been signed.<\/p>\n\n\n\n

Take aways from the Belt & Road Conference in Warsaw on 11th & 12th June 2019<\/strong><\/p>\n\n\n\n

In June GBP International was invited to be a panelist and speaker\nin Warsaw at the Poland & CEE: co-building the Belt & Road Conference,\nupon invitation by Poland Today, Frank Schuholz and Wolfgang Lehmacher. We\nexpress great thank you for the honor to be part of this great event. Our key\ntakeaways to share with you are:<\/p>\n\n\n\n