World News | Rising tensions, lack of tangible results undercut China’s ‘Belt and Road’ initiative

Beijing [China]May 11 (ANI): Rising tensions and a lack of tangible results are undercutting the appeal of China’s Belt and Road Initiative (BRI), according to Khabarhub.

Recent reports suggest that Italy is highly unlikely to renew the expiring Belt and Road agreement with China early next year. German Chancellor Olaf Schulz expressed disappointment with the Belt and Road Initiative and warned of a looming financial crisis.

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The initiative’s demise has been accelerated by Russia’s sanctions over its invasion of Ukraine and Western backlash against Beijing.

According to Khabarhub, the number of new projects signed under the Belt and Road Initiative has declined over the years as Chinese companies find it difficult to find willing partners in host countries.

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According to the FISF Center for Green Development and Finance at Fudan University in Shanghai, participation in BRI construction and investment will drop by 100% in 14 partner countries in 2022 compared to 2021, including Russia, Angola, Sri Lanka, Nepal and Peru .

Domestically, the momentum for the BRI has also waned. The Chinese economy is facing major headwinds such as shrinking real estate, shrinking population and slowing productivity growth, as well as an increasingly challenging global geostrategic environment.

China’s participation in Pakistan’s China-Pakistan Economic Corridor (CPEC) fell by about 34%. Compared with 2021, sub-Saharan Africa will see the largest decline in Chinese construction participation (-44%) and investment (-65%) in 2022.

Chinese participation in West Asia has also fallen sharply. BRI partner countries are increasingly concerned about construction deficiencies in major infrastructure projects such as Ecuador’s Coca Codo Sinclair hydropower project and Angola’s housing project.

According to Khabarhub, other concerns include corruption and debt, Chinese companies canceling projects due to financial problems, overvalued, lack of investment transparency, poor quality infrastructure and unsustainable projects such as Hambantota Port and Colombo Trade Hub, which Both are never likely to generate enough returns. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)