Panama made an unexpected diplomatic decision to leave the Belt and Road Initiative created by China thus sparking international political reactions. The direction China takes regarding the United States raises significant international effects.
Background of the Belt and Road Initiative
- President Xi Jinping established the BRI initiative during 2013 as a platform to enhance global trade activities and develop infrastructure systems across different countries.
- More than 140 countries participate in this initiative and various projects such as railways and highways and ports and power plants are currently under development.
Panama's Involvement in the BRI
- Panama joined the BRI in 2017 thus becoming an initial Latin American member.
- Panama has experienced significant advantages because of Chinese funding that includes substantial development in the Panama Canal and supporting infrastructure construction.
Reasons for Panama's Withdrawal
- The BRI projects allegedly expose multiple nations to serious financial indebtedness against China according to criticism.
- Some leaders in Panama defend that their nation faces possible future territorial sovereignty reduction through growing Chinese intervention.
- The political environment in Panama has developed increased resistance to Chinese investment programs because citizens demand stronger examination methods and increased transparency during decision-making.
China's Response and Accusations
- China delivered a message indicating their negative opinion toward Panama's decision making as they suggest external influence has come from the United States.
- The Chinese government suspects that the United States actively uses diplomacy and finance to push Panama away from the BRI which represents the US global competition against China.
The US Role and Strategic Interests
- The US government regularly criticizes the BRI while charging that China utilizes this initiative to build geopolitical strength while making other nations economically dependent on it.
- The US has increased its own infrastructure investment schemes to the Latin American region and this is a move that is seeking to offer an option than that offered by Beijing.
- The current relationship between the United States and Panama has regional and bilateral cooperation in economy and military power and the United States has a considerable influence in Panama.
Potential Implications and Future Prospects
- Political factors: Panama can give way to further tensions between the US and China and increased competition for the influence in the country and beyond.
- Possible impact on business and investment: The decision may also have implications to current and future China’s infrastructure investments in Panama and Latin America as a whole.
- Regional dynamics: Other Latin American nations that engage in the BRI may change their foreign policy strategy, considering the pros and cons, as well the pressures they may face.
China's Belt and Road Initiative
Articulated in 2013, the BRI is the largest development strategy and infrastructure network in history and geopolitics. The BRI was proposed by the Chinese President Xi Jinping as an infrastructure network that would span continents to improve trade and the economy. This has not only altered the global trade relations but has also had a major effect on the world politics.
Origins and Objectives
The BRI is named as ‘Silk road trade route’ which was a trade route between China, Europe, Africa and the Middle East. This strategy consists of two components, which are the Silk Road Economic Belt and the 21st Century Maritime Silk Road connecting China to Europe through Central Asia and via sea through the South, Southeast Asia, Africa, and Europe respectively.
The 4 main goals of the BRI are as follows:
- Improve the global trade and participating countries’ economic links and inter-connection.
- Promote infrastructure development and connectivity.
- Building friendly relations and mutual understanding among cultures of different societies.
- To strengthen the GOP’s geopolitical relations and China’s power and attraction over other countries.
Key Projects and Achievements
In the last decade, it facilitated infrastructure production of railways, highways; ports and power plants among others. Some of them which stood out in the following list are;
- Appendix II China-Pakistan Economic Corridor (CPEC): It is an investment of $62 billion which is provided to Pakistan to develop infrastructure and power facilities. They are the Gwadar Port development, construction of highways and energy projects.
- Jakarta-Bandung Railway: A $6 billion project that aims to development railway line between Indonesia’s capital city Jakarta, and city of Bandung, thus decrease the travelling time and stimulate economic development of the area.
- Mombasa-Nairobi SGR: A railway development project in Kenya which cost $3.6 billion to construct and link the port city of Mombasa to Nairobi and the project is to expand into neighbouring countries.
It has also featured many mutual cultural and educational exchange initiatives to enhance the cultural relation and cooperation between China and BRI contributing countries. For instance, China has opened many Confucius Institutes and has provided scholarships to students from BRI countries to spread Chinese language and culture.
Challenges and Criticisms
Much as it has created ideologies that are noble and as much as it has achieved many things, the BRI had several challenges and criticisms.
- Debt trap diplomacy: Critics of the BRI singled out that several countries became deeply indebted to China, with regard to the possible inability of these countries to repay those loans. This has been blamed for making China use the initiative to control countries through debt.
- Environmental and Social Aspects: some of the BRI infrastructure projects have led to social and environmental issues such as destruction of forests, evictions of people, and loss of species.
- Politicisation: BRI has caused geopolitical tensions especially between China, on one hand, and the US and India on the other hand, as the later views it as a strategic plan by China to counter their interests. This has led to rivalry in the control of influence in areas like Southeast Asia and Africa.
Future Prospects and Conclusion
The future studies of the BRI are still ambiguous bearing in mind that the initiative prospect as well as the prospects facing the BRI project. On the one hand, the BRI can enhance the integration and connection of the BRI participating countries as well as mutual recognition and trust. However, the measures to be taken need to ensure that this initiative also focuses on sustainable levels of debt, the effects on the environment, and about the geopolitical tensions for the realization of the outlined goals.
Issue with China’s Belt and Road Initiative from India’s Perspective
China’s Belt and Road Initiative (BRI) has become an ambitious project with a view of changing the face of global trade and infrastructure. Although the impact of outsourcing is felt globally, it has proved not always to be beneficial in one way or the other especially for India. The following factors support the effectiveness of the BRI as a hindrance to India’s strategic standings.
Geopolitical and Strategic Concerns
Some countries of the South Asian region where the BRI has especially focused on infrastructural development projects have been raising concerns in New Delhi. The most controversial part is the China-Pakistan Economic Corridor as it traverses through the Gilgit-Baltistan region of Pakistan occupied Kashmir. Among them, India has an issue with such projects because they infringe on its territorial integrity and indirectly recognize Pakistan’s sovereignty in the region.
“String of Pearls”
The “String of Pearls” theory implies that Chinese owning the agreements upon launching infrastructure investments, including Pakistani (Gwadar), Sri Lankan (Hambantota), Myanmar’s (Kyaukpyu) and Maldivian ports, aims to encircle India militarily. They seem to have commercial dimensions, yet they can easily be used for both strategic and security concerns that are a major concern to India.
Economic Competition and Influence
The second factor that makes the BRI a threat to India’s regional position and influence is the strong economic relations between China and India. There is a likelihood that in countries like Nepal, Sri Lanka and Bangladesh increasingly under the influence of China may weaken India’s influence and strategic depth in South Asia. Such a change in the current economic interdependence may give rise to a new grouping that is less advantageous to India from the strategic point of view.
Debt Dependency and Stability
The opponents further opine that participation in the BRI comes with the risk of the participating country taking unsustainable debts from China. This “debt trap diplomacy” may lead to some nation’s financial stress and insecurity and thus put china in a very powerful position. Some of them are; For instance the Sri Lankan government ‘s lease of the Hambantota port by China for a 99 year lease can result into geopolitical-arbitrary or economic coercion affecting India’s neighbourhood security and economy.
The BRI involves economic, strategic and geopolitical factors that have implications for India to counter it from its neighbourhood. As China rises as a superpower, it is aggressively advancing its Belt and Road Initiative, manifesting itself in the increasing geopolitical challenges for India in South Asia and the Indian Ocean region; to overcome these challenges the latter has to increase its influence in the region, foster strategic cooperation, and invest in the infrastructure projects which will offer a competitive to the BRI. Indeed analyzing the changing nature on BRI, it becomes imperative for India to step tactfully to ensure the protection of its interests in a more inter-connected yet increasingly contested global system.
India’s response to China’s BRI
India has been expecting such scenarios and has been planning to lessen China’s supremacy in the BRI Capacity as it is a strategic move as well as an investment plan. Bilateral relations, multinational cooperation and the implementation of key improvements in infrastructures projects are all valuable efforts used by India to protect its concerns and leadership position.
Promoting Alternative Infrastructure Projects
In order to present a competent counterpart to the BRI, India has been involved in the funding of infrastructure projects both locally and across its borders. One is the Chabahar port in Iran which has been developed by India as a counterbalance to Gwadar port of Pakistan that is part of CPEC. Chabahar port, which became operational a few years back, was to serve as a strategic point to provide Afghanistan and Central Asia a route by avoiding Pakistan’s soil.
Strengthening Regional Alliances
India has been seeking to strengthen its partners who are having similar apprehensions about China. By joining the formation such as the Quadrilateral Security Dialogue (Quad) comprising of the United States, Japan, Australia, and India, there is peaceful coordination that envisions a free, open, and inclusive Indo-Pacific region. These partnerships reiterate the need to keep regional stability and check on China’s strategic plans.
Engaging in Multilateral Diplomacy
India has been a supporter of markets for the improvement of the Global infrastructure transparency. India has called for responsible lending practices and sustainable debt at different multilateral forums such as, the United Nations, G20, and ASEAN Regional Forum. Therefore, due to this diplomatic engagement, the negative implications of the BRI will be revealed, and other development paradigms will be presented.
Enhancing Connectivity Initiatives
It is participating in various connectivity projects which are in congruence with India’s strategic interests. BBIN i.e. Bangladesh, Bhutan, India and Nepal deals with the development of infrastructure on transport and trade front in the region. Moreover, India has backed several projects such as the Kaladan Multi-Modal Transit Transport Project that will improve the connectivity of India to Myanmar and further on, to the Southeast Asia.
The multi-paradigm approach to comprehensively respond to China’s BRI demonstrates India’s desire to maintain stability, economic independence, and freedom of choice in regards to the region. Thus, through supporting other types of infrastructure development, intensification of the cooperation with the South Asian neighbours, multilateral cooperation, as well as concentrating on the further development of the connective projects, India wants to build balanced and conjoint development of the region. These dynamics have shaped and will continue to shape the various strategic responses that India will have to give to the further formation of the BRI.