China's One Belt One Road (OBOR) project, a world-class infrastructure project It was founded nearly 10 years ago to connect China's trade routes with the world. From Asia through Europe I can't deny that causing the United States and the West to be somewhat shaken Because it means Chinese influence on the global level will be higher. However, after the outbreak of COVID-19 And the impact of other factors, including slower growth in the Chinese economy and the real estate credit crisis, makes the OBOR project seem more challenging and slower.
In addition, OBOR's targeted developing countries suffer from high inflation and high public debt. This makes lending to these countries more risky to invest in OBOR. Despite China's insistence on dedicating itself to the OBOR program to promote the recovery and growth of the global economy.
Boston University Center forwww hilorichGlobal Development Policy of the United States indicates that there are signs that In recent years, China's major project efforts have slowed. For example, lending to Africa in 2019-2020 dropped 77 percent from $8.2 billion to $1.9 billion. The reason may be due to the weakening economy of countries to join OBOR due to COVID-19. Therefore, there are budget constraints. Including the problem of public debt. Therefore, the need to join OBOR is reduced.
“Actually, the policy of Chinese banks to lend to projects like this started to decline even before COVID-19, but it looks like COVID-19. will accelerate this decline I believe that now Chinese financial institutions will have to rethink their strategies.”
OBOR's weakening raises the question: Will it be an opportunity for the G7 Group's Build Back Better World (B3W) project led by the United States to come up with a counterattack on OBOR after letting China go far ahead?
The B3W project was launched last June. Along with the promise of $600 billion of investment in this project, of which $200 billion will come from the United States. As the United States actively route to target countries to strengthen its global role in infrastructure. For example, in August this year, "Wendy Sherman" US Deputy Secretary of State. travel to the south pacific To strengthen ties and increase support for countries in the Pacific Islands
Antony Blinken, Minister of Foreign Affairs went to visit South Africa He reiterated that the B3W project would be an option for different countries to be different from some projects. without coercion be transparent does not harm the environment No forced labor and no debt burden to the participating countries. However, even without mentioning the name of the project But it is generally understood to be an OBOR percussion talk.
China's OBOR has been slammed by the West for using its policy of creating a "debt trap" to gobble up the country's infrastructure by offering loans to participating countries. But if unable to pay the debt, it will be taken advantage of, such as in the case of Sri Lanka, where the port is completed. but can not use the debt to China Therefore, China had to lease the port for 99 years, which is an important strategic point for China. The allegations have stigmatized OBOR. even if China refused.
