China: Sri Lanka and Pakistan have become trouble for Xi Jinping, dark clouds are hovering over the ambitious project Belt and Road Initiative

  Belt and Road Initiative- India TV Hindi News
Image Source : PTI
Belt and Road Initiative

Highlights

  • There is an investment of about $147 billion
  • Sri Lanka has already defaulted on loan payments worth $51 billion
  • China has cooperative relations with 87 countries in the field of science and technology

BRI: China has defended its ambitious $147 billion Belt and Road Initiative (BRI), dismissing reports of fears about its future. Some reports say the future of President Xi Jinping’s strategic project looks bleak as countries such as Pakistan and Sri Lanka have posed a serious threat to the Chinese economy by failing to repay debts. After which China came to the rescue and said that we have got the support of 149 countries in BRI. BRI has signed documents with 32 international organizations. We have an investment of about $147 billion. In such a situation, the sinking of the debt of Sri Lanka and Pakistan will not affect the BRI.

BRI trapped in debt and middle debt over many countries

Various “think tanks” have been quoted in various reports as saying that the BRI and its $60 billion China-Pakistan Economic Corridor (CPEC) hang in the balance as countries from Asia to Africa are in debt. These countries are not able to complete the projects and are unable or refusing to pay the loans.

Poor condition of Pakistan and Sri Lanka

Countries like Pakistan and Sri Lanka, facing severe foreign exchange crisis, are converting Chinese project loans into balance of payments to tackle economic problems. Sri Lanka has already defaulted on loan payments worth $51 billion, including loans from China, while Pakistan is on the verge of a financial crisis. To survive the economic situation like Sri Lanka, Pakistan is dependent on the help of the International Monetary Fund (IMF).

Jinping’s ambitious project is BRI

The BRI and CPEC are ambitious projects of Xi Jinping, who is widely expected to hold an unprecedented third term by the ruling Communist Party of China (CPC) five-year congress later this year. India has opposed China over the CPEC as it passes through Pakistan-occupied Kashmir.

Read Also:  Argentina Mourns Loss of 5-Year-Old Boy

$147 billion investment

Chinese Foreign Ministry spokesman Wang Wenbin denied reports that the BRI was in financial trouble and told a press conference that as of July, China has signed BRI documents with 149 countries and 32 international organizations. “We have investments of more than a trillion yuan (about $147 billion),” Wenbin said. He also said that China has cooperative relations with 87 countries in the field of science and technology. Weinbin said that since BRI was conceived nine years ago. China has worked with the relevant countries on the basis of the principles of mutual consultation and cooperation for the benefit of both sides and achieved fruitful results.

Questions are being raised on China’s claims

Reports quoting several think tanks have raised many questions on the BRI and CPEC. Brad Parks, executive director of the EdData Research Lab at the University of William and Mary in the US, said China is “moving away from the project and toward emergency rescue loans for balance of payments”. China has extended nearly $26 billion in short- and medium-term loans to Pakistan and Sri Lanka over the past five years, according to China, as its foreign debt shifted from infrastructure to providing emergency relief.

BRI raises China’s financial concerns

A report by the Japanese media organization ‘Nikkei’ said that as financial concerns about China’s BRI initiative grow, many countries are withdrawing or abandoning projects that are part of the BRI. . When asked his reaction to these reports, Weinbin referred to BRI’s projects such as the China-Laos Railway, the bridge in Serbia and the Gwadar port in Pakistan.

Latest World News

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here