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21. The Kunming-Vientiane Railway: The Economic, Procurement, Labor, and Safeguards Dimensions of a Chinese Belt and Road Project

Author:
Scott Morris
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Kunming-Vientiane (K-V) railway, part of the Kunming-Singapore multi-country rail network (or “Pan-Asia Railway”), is an anchor investment of the Chinese government’s Belt and Road initiative (BRI). This case study will assess the rail project along four dimensions: economic implications; procurement arrangements; labor; and environmental and social safeguards. In each of these areas, evidence from the railway project suggests that Chinese policy and practice could be better aligned with the practices of other sources of multilateral and bilateral development finance. Where the project’s standards are broadly aligned, at least in principle, there is nonetheless reason to believe that China’s approach carries heightened risks given the overall scale of financing. These risks hold for China’s global program of official finance, which has made the country the largest source of official credit in the world. In this regard, BRI policymakers should consider a more rigorous set of “best practices” that align Chinese official finance with leading multilateral standards, even if these practices don’t currently characterize many other bilateral lenders. Such an approach would be consistent with the multilateral vision for BRI espoused by Chinese officials and reflected in the framework of the annual Belt and Road Forum for International Cooperation. This study considers what a stronger set of standards would look like in the context of the four areas of focus.
Topic:
Infrastructure, Belt and Road Initiative (BRI), Transportation, and Railways
Political Geography:
China and Asia

22. Grading China's Belt and Road

Author:
Daniel Kliman, Rush Doshi, Kristine Lee, and Zack Cooper
Publication Date:
04-2019
Content Type:
Special Report
Institution:
Center for a New American Security
Abstract:
Since its launch in 2013, what China calls “One Belt, One Road” has emerged as the corner-stone of Beijing’s economic statecraft. Under the umbrella of the Belt and Road, Beijing seeks to promote a more connected world brought together by a web of Chinese-funded physical and digital infrastructure. The infrastructure needs in Asia and beyond are significant, but the Belt and Road is more than just an economic initiative; it is a central tool for advancing China’s geo-political ambitions. Through the economic activities bundled under the Belt and Road, Beijing is pursuing a vision of the 21st century defined by great power spheres of influence, state-directed economic interactions, and creeping authoritarianism. As Beijing prepares to host the second Belt and Road Forum in late April 2019, countries that once welcomed Chinese investment have become increasingly vocal about the downsides. This report is intended to serve as a resource for governments, corporations, journalists, and civil society groups now re-evaluating the costs and benefits of Belt and Road projects. Building on previous research by the Center for a New American Security and other institutions,2 this report provides a high-level overview of the primary challenges associated with China’s Belt and Road. It explores these challenges in the context of 10 cases that have received little high-profile attention and identifies future concerns generated by the Belt and Road’s growing digital focus. Lastly, the report puts forward a checklist for evaluating future infrastructure projects involving China.
Topic:
Development, Economics, Infrastructure, Authoritarianism, Geopolitics, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

23. Securing China’s Belt and Road Initiative

Author:
Zi Yang
Publication Date:
11-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
The November 23 attack on the Chinese consulate in Karachi, Pakistan, is the latest sign that anti-Chinese sentiment may be taking root in countries that have received massive inflows of investment from China’s Belt and Road Initiative. USIP’s new Special Report provides an overview of the different security arrangements China is using to protect its overseas investments and workers, and examines how the Belt and Road Initiative is spurring the rapid growth of China’s domestic private security industry.
Topic:
Security, Infrastructure, Belt and Road Initiative (BRI), and Peace
Political Geography:
Pakistan, China, South Asia, and Asia

24. Game of Institutional Balancing: China, the AIIB, and the Future of Global Governance

Author:
Kai He and Huiyun Feng
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies (NTS)
Abstract:
The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a “charm offensive” by China towards multilateral institutions and existing global financial governance. If the rise of China is inevitable, what will the future world look like and what should other countries be prepared for? Borrowing insights from institutional balancing theory and role theory in foreign policy analysis, this project introduces a “leadership transition” framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies, i.e., inclusive institutional balancing, exclusive institutional balancing, and inter-institutional balancing to compete for influence and interest in the process of establishing the AIIB. A state’s role identity as a “leader,” a “challenger,” or a “follower” will shape its policy choices regarding different institutional balancing strategies in the process of leadership transition in global governance. Institutional balancing is a new form of balancing among states in the future of global governance. China’s institutional rise in global governance might be more peaceful than widely predicted.
Topic:
Regional Cooperation, Infrastructure, Governance, and Economic Cooperation
Political Geography:
United States, China, and Asia

25. Southeast Asia Financial Integration and Infrastructure Investment: What Role for the United States?

Author:
Murray Hiebert
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Issue Southeast Asia has come a long way since the devastating financial turmoil of 1997 and has set up mechanisms to avoid the next shock. But in case a future crisis hits, it would be useful for the U.S. government to say upfront if it would support International Monetary Fund (IMF) support. Some in the Trump administration have said they oppose IMF bailouts. The newest opportunity—and challenge—to Southeast Asia’s financial system is the bursting onto the scene of fintech firms. These companies are meeting the urgent needs of underserved populations. Yet their activities outstrip the ability of traditional regulators to govern their activities and protect consumers. China’s Belt and Road Initiative could play a mighty role in meeting infrastructure needs in Southeast Asia if it is done right. But so far Beijing has said little about what it envisions the impact of its projects to be. “Will that spending help people who need it most?” asks Jonathan Hillman of CSIS’ Reconnecting Asia Project. “Will it go into viable projects…? Will it help or hurt climate change?” “[I]n countries where public debt is already high, careful management of financing terms [for infrastructure projects] is critical,” IMF Managing Director Christine Lagarde said during a conference in Beijing. “This will protect both China and partner governments from entering into agreements that will cause financial difficulties in the future.”
Topic:
Infrastructure, Global Political Economy, Integration, and Economic Cooperation
Political Geography:
United States, China, Asia, and Southeast Asia

26. Risky Business: A Case Study of PRC Investment in Tajikistan and Kyrgyzstan

Author:
Danny Anderson
Publication Date:
08-2018
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
China’s “New Silk Road” or “Belt and Road Initiative” (BRI) has reached Central Asia in resounding fashion. As a result, the republics of Tajikistan and Kyrgyzstan have seen large increases in Chinese presence and investment. Although both countries have overlapping needs, the degree and character of PRC involvement in each has differed. PRC investment in Tajikistan is characterized by expensive loans on infrastructure investment and energy projects that the country may be unable to repay (Avesta.tj, December 25, 2017). Kyrgyzstan, while having hosted similar projects, is also attempting to move the country into the twenty-first century by improving its transportation and digital infrastructure (Tazakoom.kg). Development experts classify both countries as “high-risk” for debt distress given public debt projections (Cgdev.org). However, despite the risk of such an outcome, both countries appear inclined to welcome PRC investment with open arms, as a way of funding needed investment like power generation and logistical links with the outside world.
Topic:
Development, Infrastructure, Economic growth, and Soft Power
Political Geography:
Russia, China, Central Asia, Kyrgyzstan, and Tajikistan

27. Can China Realize Africa’s Dream of an East-West Transport Link?

Author:
Cobus van Staden
Publication Date:
04-2018
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Several ambitious schemes have been proposed to link Africa’s east and west coasts, some of which are closer to full realization than others. Most notable in this respect is a plan to expand the existing Trans-African Highway 5 (TAH5) into a true cross-continental road and rail link, the early stages of which China has helped bring to fruition where Western consortiums failed. Likewise, Chinese investment in African infrastructure through Beijing’s ambitious Belt and Road Initiative (BRI) may help create expanded sub-regional linkages, particularly in East Africa, that could help facilitate the emergence of an eventual, true East-West link in the long term. However, in the short-to-mid-term, the obstacles to a truly robust set of East-West transport links are formidable, and it is unlikely that China’s involvement will be a panacea.
Topic:
Development, International Trade and Finance, Infrastructure, and Soft Power
Political Geography:
Africa, China, and Asia

28. Exploring the Awareness of China Pakistan Economic Corridor: A Stakeholder’s Perspective

Author:
Fouzia Hadi Ali and Aban Abid Qazi
Publication Date:
01-2018
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The purpose of this paper is to examine the prospects of China Pakistan Economic Corridor (CPEC) from a stakeholder’s perspective. The identification and communication of stakeholders can play a vital role in identifying the perceptions of all who are directly or indirectly involved in a project. Moreover, this study focuses on the general nature of stakeholders and their awareness about the mega project. An exploratory study was conducted through a structured survey instrument to tap the awareness and opinions of the stakeholders connected to the likely benefits of CPEC. The results revealed interesting findings relating to their opinions about CPEC. The study further suggests some important implications and future directions to introduce an inclusive approach to mitigate the misconceptions about CPEC.
Topic:
Development, International Cooperation, Infrastructure, Economy, and Economic growth
Political Geography:
Pakistan, China, South Asia, and Punjab

29. Belt and Road Initiative: Regional and Global Dimensions

Author:
Muhammad Iqbal Chawla
Publication Date:
01-2018
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
This paper is an attempt to explore the regional significance and global dimensions of the Chinese President Xi Jin Ping’s vision and initiative regarding Belt and Road which can transform adjacent countries like Afghanistan, Central Asian Republican States (CARS), India, Iran, Nepal and Pakistan into a real economic hub in coming time. Belt and road initiative is a mega project which includes; massive road connectivity, geographical linkages, rail and road transportation system, people to people contacts, development of understanding through cultural, academic, business and professional exchanges for the progress and prosperity of this vast region. In fact, the initiative of China Pakistan Economic Corridor is one of the mega projects which focuses; the creation of new regional connectivity through Gwadar Sea Port, giving direct access to Chinese goods from Kashgar (China) towards Gwadar (Pakistan). Hence, this development of faster infrastructure of rail, roads, towards maritime transportation and communication is an important project which can connect the countries of the area like Afghanistan, India, Nepal, Central Asia as well as Iran. Thus, the Gwadar Port will connect China, Russia, Middle East, Central Asia and South East Asia. The OBOR and CPEC are a burning issue and much debated topic in today’s Pakistan and world at large. In Pakistan mostly people believe that the CPEC will be a major source of economic development, peace and prosperity. On the one hand, US and India nexus, is trying to develop negative image about the project of CPEC by creating the impression of another colonial domination on the Pakistan territory in the form of Chinese presence. India is making all efforts, to sabotage and to damage the credibility of the CPEC project. This paper by delving and investigating the OBOR and CPEC connections will try to encapsulate the regional importance, dimensions of the project of Belt and Road initiative.
Topic:
Infrastructure, Soft Power, Belt and Road Initiative (BRI), and Economic Development
Political Geography:
Pakistan, China, South Asia, Central Asia, India, and United States of America

30. Making Inroads: China's New Silk Road Initiative

Author:
Christine R. Guluzian
Publication Date:
01-2017
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
China’s New Silk Road initiative is a multistate commercial project as grandiose as it is ambitious. Comprised of an overland economic “belt” and a maritime transit component, it envisages the development of a trade network traversing numerous countries and continents. Major investments in infrastructure are to establish new commercial hubs along the route, linking regions together via railroads, ports, energy transit systems, and technology. A relatively novel concept introduced by China’s President Xi Jinping in 2013, several projects related to the New Silk Road initiative—also called “One Belt, One Road” (OBOR, or B&R)—are being planned, are under construction, or have been recently completed. The New Silk Road is a fluid concept in its formative stages: it encompasses a variety of projects and is all-inclusive in terms of countries welcomed to participate. For these reasons, it has been labeled an abstract or visionary project. However, those in the region can attest that the New Silk Road is a reality, backed by Chinese hard currency. Thus, while Washington continues to deliberate on an overarching policy toward Asia, Beijing is making inroads—literally and figuratively— across the region and beyond.
Topic:
Infrastructure, Soft Power, Belt and Road Initiative (BRI), and Trade
Political Geography:
China and Asia