Gordon Chang Explains China's Massive Belt and Road Initiative

Automatic TRANSCRIPT

Or tributary nations. That will be simply vassals. Is that an over-simplification. How does one belt one road work. What is the global vision for china as it looks at the world coming up to the hundred anniversary of the communist revolution the belton road initiative as it's now called is really started out. As to initiatives there was a belt and these were announced the in september two thousand thirteen there was a belt which was to connect the east coast of china to europe and it was a road which was a water route connecting both locations east coast of china and europe since then Dalton road has been extended around the world and they've added the digital silk road which started out life in two thousand fifteen or so as a separate plan but was incorporated into belt road so belton road is really an attempt to build the infrastructure to tie the world to china now. This gets a little bit complicated. I've never really been too worried about belton road largely because i've tracks long hong kong. I didn't do infrastructure work but my firm did and i can tell you that. All of the economically justifiable projects in the world were being handled by the private sector. What china's doing is building the infrastructure. That nobody else wanted to. Yeah and so and subsidizing it been below market rates. Yes there is a danger. Though and that is we have seen What's called dead trapped diplomacy because these projects are not economically justifiable for the most part but what china has been able to do was to uses position as a creditor to take over control of facilities so for instance it took control of hambantota which is important sri lanka. We know that china has used. Its colombo international container terminal also sri lanka For military purposes djibouti china's really offshore military installation is in a country that has a debt to china that is probably an excess of one hundred percent of its gross domestic product. So that's no coincidence. But the reason why. I've get really worried about belton. Road is because of the bahamas. Yes in the bahamas. Hong kong firm is pouring something like three billion. Maybe a little bit more into the freeport container port. It's also there's a

Coming up next