President Biden, Boris Johnson Push Inexperienced Chinese language Belt and Chinese language Road Various – What’s Incorrect With It?
Biden’s government has announced plans to borrow billions of dollars, presumably from China, to fund a green rival to China’s Belt and Road initiative and counter China’s global debt-trap diplomacy.
Biden said he proposed a plan to British Johnson to keep up with China’s belt and road
By Jarrett Renshaw
3 MIN READ
NEW CASTLE, Del. (Reuters) – US President Joe Biden said he suggested to British Prime Minister Boris Johnson in a phone call on Friday that democratic countries should have an infrastructure plan that rivals China’s Belt and Road initiative.
“I suggested that we should essentially have a similar initiative pulling out of democratic states and helping communities around the world that actually need help,” Biden told reporters.
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The project would significantly expand China’s economic and political influence and raise concerns in the US and elsewhere.
Biden’s remarks came after he said Thursday he would prevent China from passing through the United States to become the most powerful country in the world. He promised to invest heavily to ensure America can survive the ever-growing rivalry between the world’s two largest economies.
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Read more: https://www.reuters.com/article/usa-britain-biden-china/update-2-biden-says-he-suggested-to-uks-johnson-a-plan-to-rival- china-belt-and-road-idUSL1N2LO2NZ
Why am I suggesting this is a green initiative? Aside from the fact that Biden and Boris are both hardline greens, the following is from 2 weeks ago;
Biden’s focus on climate change could put pressure on China’s mega-infrastructure program
PUBLISHED THU JANUARY 14, 2021 Yen Nee Lee @ YENNEE_LEE
- China’s massive Belt and Road Initiative has been criticized for funding and building environmentally harmful infrastructure projects.
- Beijing has announced that it will focus more on cleaner projects as part of the Belt and Road initiative. However, so far only a few concrete results have been recorded, according to the analysts.
- US President-elect Joe Biden’s focus on combating climate change could make it difficult for China to “wash green” its mega-program, said Jonathan Hillman, a senior fellow at the American think tank center for strategic and international studies.
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During his campaign for the US presidency, Biden criticized China for funding dirty fossil fuel projects around the world through the Belt and Road Initiative – and for “moving” Chinese carbon pollution to other countries.
Since winning the election, Biden has not announced any specific plans to address environmental issues related to the BRI. However, analysts said the Biden government could work with partners and allies to offer BRI-participating countries an alternative source of funding for cleaner projects.
“The US approach is likely to continue to use a combination of whips and carrots,” said Jonathan Wood, director and senior US analyst at control Risks.
In an email, he told CNBC that the US would use its own funding program – the US International Development Finance Corporation – to focus on green investments in order to keep up with China’s initiative. The US could also put pressure on the partners participating in the BRI to raise environmental standards for their projects, Wood added.
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Read more: https://www.cnbc.com/2021/01/14/climate-change-biden-could-up-pressure-on-chinas-belt-and-road-initiative.html
The interesting thing is that China’s belt and road could implode without help from the US or the UK.
Credit stress hurts new money for China’s massive infrastructure project, says Moody’s
PUBLISHED TUE NOVEMBER 24, 202012: 19 ESTYen Nee Lee @ YENNEE_LEE
- In the first half of 2020, China-led new contracts and investments in countries participating in the Belt and Road initiative were worth $ 23.5 billion, Moody’s said in a report.
- This indicates that the total annual volume will be “well below” the 104.7 billion US dollars of the previous year, the agency added.
- The coronavirus pandemic has placed financial burdens on many small economies participating in China’s Belt and Road Initiative, she said.
SINGAPORE – investing in China According to Moody’s Investors Service, the massive infrastructure project in 2020 could “fall far short of the previous year’s level” as the coronavirus pandemic caused financial burdens in the participating countries.
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In the first half of 2020, the value of China-led new contracts and investments in BRI countries was $ 23.5 billion, the rating agency said in a report on Monday. This suggests that the full year volume will not reach last year’s $ 104.7 billion.
Such a decline is due to mounting economic and financial pressures from participating countries, many of which are small economies that are less able to fund new debt, said Michael Taylor, managing director and chief credit officer for Asia Pacific at Moody’s.
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Read more: https://www.cnbc.com/2020/11/24/covid-halts-investments-in-chinas-belt-and-road-initiative-moodys.html
Australia has also done its part in weakening the Belt and Road by helping Papua New Guinea clear its debt to China.
China’s debt trap policy in Papua New Guinea is failing splendidly. Looks like Morrison played his cards well
The Australian hand in China’s new loss
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Timothy Masiu, who is in charge of both communications and the island nation’s department of information technology, accused China of deliberately building a flawed data center. “If you buy something in a store and it doesn’t work, give it back and get your money back,” Masiu told The Australian Financial Review, the leading Australian newspaper. “We’re having trouble paying off our other debts. Why should we pay back this loan?” he added.
PreviouslyAn investigation ordered by the government of Papua New Guinea in 2019 found that the data center built by Huawei had significant cybersecurity deficiencies. “It is assessed with great certainty that data flows can be easily intercepted,” says the 2019 report. “Remote access is not recognized by the security settings.”
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Read more: https://tfipost.com/2020/08/debt-trap-policy-of-china-in-papua-new-guinea-backfires-gloriously-looks-like-morrison-has-played-his- cards -Good /
The fatal flaw in China’s debt diplomacy is that China not only lent the money, but insisted on using its own people to build the belt and road infrastructure projects. So if there are issues like the security backdoor in the Chinese communications infrastructure allegedly discovered by Papua New Guinea, countries have an excuse for doing what Papua New Guinea did and claim that China has failed to deliver on its promises.
There are other examples of Chinese debt that countries could reject due to the flawed process, like the hideously corrupt Revantador volcanic dam in Ecuador. Everyone but a former deputy prime minister in Ecuador is in jail for the corrupt signing of this agreement, and the crumbling, silt-filled dam that sits on the geologically unstable foothills of the Revantador volcano has clearly never been a success.
Even countries trying to play China’s game have problems. For example, the Pacific island nation of Vanuatu has taken out large loans from China to finance the modernization of shipping ports and a new conference center that nobody wants. After Vanuatu struggled to repay the debt, China took control of some of Vanuatu’s tourist assets. Given the ongoing slump in tourism in Covid, I wonder how this will affect China.
What happens next if everyone pays their belt and road debts, or China cannot get their spending back even if they take control of the belt and road infrastructure? It really depends on how China funded Belt and Road.
In late 2020, the Chinese government announced that it would take control of private sector savings to use people’s savings to fund infrastructure projects. In my opinion, they have probably been practicing defacto control for years, but they finally decided to make that defacto control a formal article of Chinese law.
Why do the Chinese authorities need such control over private savings? I suspect the CCP used the money to hide its financial problems. I believe it is possible that the CCP simply seized money from private savings banks to fill in loopholes in its failing Belt and Road program and prop up failing state-owned corporations, whose treasuries were likely emptied years ago, to support President’s vanity projects Xi Jinping to finance belt and road.
The Evidence: – In 2020, large Chinese state-owned companies also began to default on their debts. But now they seem able to meet their obligations. Where did the money come from if not from plundered private savings? What will the CCP do when they run out of other people’s money?
If I’m right, and that’s a big problem, the US and UK just have to sit back and wait for the house of cards to collapse. You don’t have to dive into China’s geopolitical mistakes and copy them by releasing a western version of Belt and Road.
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