Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


China’s Xi aims to soothe Belt and Road fears

President Kenyatta is among 37 leaders attending the BRI forum in Beijing. Photo/XHINUA.

Beijing, China, Apr 26 – Chinese President Xi Jinping sought Friday to bat away concerns about his ambitious Belt and Road Initiative, saying his global infrastructure project will have “zero tolerance” for corruption while vowing to prevent debt risks.

Xi made his remarks at a summit on his signature foreign policy, which aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects.

The initiative offers to bring much-needed modern infrastructure to developing countries–including Kenya which was loaned to put up a modern Standard Gauge Railway (SGR) connecting the port city of Mombasa and the capital Nairobi and is seeking a further Sh368 billion for the second phase from Naivasha to Kisumu, but critics say it mainly favours Chinese companies while saddling nations with debt and causing environmental damage.

The opacity of deals between Chinese companies and local governments has also raised alarm.

“Everything should be done in a transparent way and we should have zero tolerance for corruption,” Xi said at the gathering of 37 world leaders.

China has also rejected accusations that Belt and Road is a “debt trap” and a geopolitical tool for Beijing’s ambitions of becoming a global superpower.

“The Belt and Road is not an exclusive club,” Xi said.

In a nod to the concerns over loans, he added: “We also need to ensure the commercial and fiscal sustainability of all projects so that they will achieve the intended goals as planned.”

His comments came a day after Finance Minister Liu Kun said China would present the forum a debt sustainability framework to “prevent debt risks” — a move welcomed by International Monetary Fund chief Christine Lagarde.

Pakistani Prime Minister Imran Khan, who said his country was an “enthusiastic” supporter of Belt and Road, called for the creation of an office for anti-corruption cooperation.

Advertisement. Scroll to continue reading.

The two countries are building the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar project linking the northwest Chinese region of Xinjiang to the Arabian sea port of Gwadar.

Amid warnings that some of the massive projects are causing environmental damage in Asia, Xi said China will also promote “green” development.

A study recently found that Belt and Road could accelerate the spread of invasive species in many countries.

– Debt troubles –

Leaders from 37 countries are in Beijing for the three-day forum, with officials from scores of other nations in attendance.

Khan, Russian President Vladimir Putin and Italian Prime Minister Giuseppe Conte, whose country became the first G7 member to sign up to Belt and Road, are among the headliners.

EU powers Germany and France have sent ministers to the summit.

Putin called for a global response against protectionism, unilateral sanctions and “trade wars” — veiled criticisms of the United States.

The United States, which sent a senior White House official to the first BRI summit in 2017, has not dispatched any officials.

Advertisement. Scroll to continue reading.

Washington, which involved in trade and other diplomatic spats with China, has dismissed BRI as a “vanity project” and rebuked Rome for signing up to the scheme.

Graphic on China’s massive infrastructure investment project including road, rail and ship routes around the world © AFP / Laurence CHU

With US negotiators heading to China for a new round of trade talks next week, Xi repeated a pledge to increase imports and vowed to abolish “unjustified” subsidies to Chinese firms — both key US demands.

Since Xi launched Belt and Road in 2013, China has invested $90 billion in projects while banks have provided upwards of $300 billion in loans, according to Chinese officials.

But examples of debt trouble abound.

Sri Lanka turned over a deep-sea port to China for 99 years after it was unable to repay loans. Pakistan needs an international bailout.

And Montenegro has had to make difficult choices after taking on crushing Chinese debt to pay a Chinese company to build a new highway.

Pushing back has proved a successful election issue in Asia, including in Sri Lanka, the Maldives and Malaysia, as the trademark infrastructure drive is used to whip up fears about eroding sovereignty.

After his electoral victory last May, Malaysian Prime Minister Mahathir Mohamad cancelled some planned works and renegotiated a rail project cutting 30 percent off the price tag.

But Mahathir said at the summit that “the Belt and Road idea is great” and he “fully” supports it.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...