Sunday 18 August 2019

China wants to expand sprawling infrastructure project

Mr Xi spoke at a gathering of leaders to celebrate the multibillion-dollar Belt and Road Initiative, his signature foreign project.

Chinese President Xi Jinping raises his glass and proposes a toast during the welcome banquet ( Nicolas Asfouri/Pool Photo/AP)
Chinese President Xi Jinping raises his glass and proposes a toast during the welcome banquet ( Nicolas Asfouri/Pool Photo/AP)

By Joe McDonald, Associated Press

President Xi Jinping has called for more countries to join China’s sprawling infrastructure-building initiative in the face of US opposition to a project Washington worries is increasing Beijing’s strategic influence.

Mr Xi spoke at a gathering of leaders to celebrate the multibillion-dollar Belt and Road Initiative, his signature foreign project.

The upbeat tone of the two-day forum, at which Russian President Vladimir Putin and other leaders praised the initiative, is a setback for the Trump administration, which is trying to discourage other countries from participating.

Mr Xi promised on Friday to promote high financial, environmental and other standards in response to complaints about debt and other problems.

That has the potential to heighten tensions with Washington by attracting more participants.

“We need to encourage the full participation of more countries and companies,” the Chinese president said at the event at a government conference centre outside Beijing.

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Workers dismantle the Belt and Road Forum logo next to the ‘Golden Bridge of Silk Road’ structure (Andy Wong/AP)

Mr Xi tried to dispel complaints Belt and Road does little for developing countries that have borrowed from Beijing to build ports, railways and other facilities.

Mr Xi said his government wants to “deliver benefits to all”.

Other governments welcomed the initiative launched in 2013 to increase trade by building ports, railways and other infrastructure across Asia, Africa and the Middle East.

But some are struggling to repay Chinese loans, which has fuelled complaints about a possible “debt trap”.

Critics also complain too much of the work goes to Chinese state-owned companies and the initiative might lead to corruption and environmental damage.

The United States, Russia, Japan and India worry Beijing is eroding their influence.

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A group photo at a welcoming banquet for the Belt and Road Forum at the Great Hall of the People, in Beijing (Jason Lee/Pool Photo/AP)

American officials have warned other governments about potential debt problems and China’s possible political motives.

Mr Xi’s government is trying to revive momentum for Belt and Road after the number of new projects slumped last year.

That followed official announcements that Chinese lenders would examine borrowers more closely and concerns by some governments about Beijing’s rising influence.

On Friday, Mr Xi promised to embrace international financial, environmental and other standards.

He pledged to work more closely with multinational entities and to open projects dominated by Chinese state-owned companies wider to private and foreign contractors.

Despite US opposition, the Chinese government says the number of countries have signed agreements to support the initiative has risen to 115 from 65.

Beijing scored a diplomatic coup in March when Italy, a member of the Group of Seven major economies, signed an agreement to support Belt and Road.

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Russian President Vladimir Putin and Chinese President Xi Jinping (Alexei Nikolsky, Sputnik, Kremlin Pool Photo/AP)

On Friday, Mr Putin said Belt and Road fits with Moscow’s initiative to develop a common market with four of its neighbours.

The Chinese leader repeated his promise to adopt “widely accepted rules and standards” and encourage Belt and Road countries to follow global standards for project development, purchasing and operations.

“We welcome the participation of multilateral and international financial institutions in Belt and Road investment and financing, and we encourage third market cooperation,” said Mr Xi.

“With involvement of multiple stake holders we can surely deliver benefits to all.”

Mr Xi’s promises on debt, transparency and anti-corruption “will be well received by some BRI countries and outside observers,” Kelsey Broderick of Eurasia Group in a report.

Others including the European Union “will wait to see actual implementation”.

PA Media

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