Wednesday, July 11, 2018

News Note ---- Bloomberg: China's Silk Road Isn't So Smooth

A lot has been written about the Belt and Road Initiative coming from China. Some observers have said this is the visible proof that China is on a path to surpass the US. In this opinion article appearing on Bloomberg, the author suggests that things are not going as smoothly for China as it would have hoped. Below are a couple of excerpts.

"You may not have noticed, what with the outbreak of trade war with the U.S. and all, but China’s economic diplomacy has had a bad few weeks. The country’s flagship Belt and Road Initiative is dealing with ever-greater resistance, slowing a momentum that once seemed unstoppable. In fact, I’d argue that the BRI is stalled."

. . . . .

"When the Belt and Road was first announced, it must have felt like a gift from heaven for embattled governments trying to raise money for the infrastructure their voters wanted. But, the truth is that China’s cash came with onerous conditions  high interest rates, procurement guarantees for Chinese companies, imported workers. Nor was China really prepared for the hurdles faced by big-ticket investments in countries with messy, more accountable politics."

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