Realistic view of B&R will serve initiative best
It’s impossible that B&R projects can get done overnight. Sufficient communication is a prerequisite for cooperation along the route, if there is to be improved understanding of key issues.
Since early this year, articles portraying the Belt and Road (B&R) initiative in a bad light have emerged. The timing is tricky since 2018 is the fifth anniversary of the B&R initiative, and it also comes before the second Belt and Road Forum for International Cooperation.
Stories such as Malaysia suspending a B&R rail project worth $20 billion and a hydroelectric dam partly financed by Chinese State funds being in danger of collapse have caught some eyes. But these stories are illogical if examined more closely.
For one thing, not all Chinese overseas projects are B&R projects, and not every Chinese company investing abroad is doing so in relation to the B&R initiative.
Further, business projects have risks. Some media frame the Chinese overseas projects as “unequal treaties,” attributing the failure of some projects to the so-called “China-centric approach.” Some even try to smear China’s B&R projects by associating these projects with the Malaysian 1MDB fund scandal. In this situation, China has to maintain a strategic focus and analyze the changing conditions.
There should be a screening process for companies and projects that are undertaken in the name of the B&R. Many Chinese companies going overseas take advantage of the popularity of the B&R. But some of them are not well-performing businesses. If their projects fail or have quality issues, the negative impact on the B&R can’t be avoided. So it needs to be clarified which projects are parts of the B&R and which are not.
Good projects must be encouraged. Information on both distinguished B&R companies as well as badly performing ones should be made public by setting up positive and negative lists, so that international counterparties can make cooperation decisions based on more complete information.
Policy banks and financial institutions can also make funding decisions based on these lists. By encouraging the good and restricting the bad, China can build a high-quality image for B&R projects.
At the same time, a screening mechanism will incubate a number of multinational companies with global vision and competitiveness. In this way, the B&R initiative can truly help Chinese companies step closer to worldclass levels.
B&R projects have mostly been asset heavy, such as Gwadar Port, China Railway Express cargo services and the China-Belarus Industrial Park. It usually takes more time and money, and involves more risks, to undertake those projects. But “soft” connectivity projects need to be emphasized since they can better act as a means to connect people. Working on projects in education, training, healthcare and agriculture can rectify misunderstandings about the B&R initiative.
Meanwhile, China should be cautious launching new large-scale power projects, and industrial park construction is another case where “less is more.” Chinese companies also focus on providing better services in fields such as strategic consultancy, accounting and financial support.
Efforts are needed to support the establishment of B&R-related think tanks. Over the past five years, many institutions and scholars have attended major B&R events, but when the speeches ended, they simply went back to their old jobs.
Efforts to set up B&R think tanks don’t seem to have gone well. But there must be ongoing research on the initiative as B&R policies necessitate real-time adjustments. B&R think tanks are a must to allow for knowledge connectivity.
B&R think tanks shouldn’t simply explain policies and give recognition to the greatness of the initiative. They need to focus more on fixing misunderstandings about the initiative. It’s often the case that Western media characterize the B&R as a plan proposed by the Chinese leadership to raise money for investment in infrastructure projects across the globe. This is a typical bias involving the initiative that requires clarification. The B&R initiative, in essence, highlights connectivity in policies, infrastructure, trade, finance and people. Infrastructure connectivity is a priority but not the entirety of the initiative.
It’s impossible that B&R projects can get done overnight. Sufficient communication is a prerequisite for cooperation along the route, if there is to be improved understanding of key issues.
It must be known that the initiative is distinct from Western colonialist claims. It is not about sending gifts; instead it advocates wide consultation, joint contribution and shared benefits.
The attractiveness of the B&R initiative lies in its being open and tolerant. Different inputs and even critical opinions are welcomed. It’s not a cure for all ills.
The boundaries of its capacity should be identified upfront, avoiding either exaggerating or downplaying its accomplishments.
The author is a professor with the Institute for International Strategic Studies of the Central Party School of the Communist Party of China. bizopinion@globaltimes.com.cn