(Ottawa) China’s ambassador to Ottawa says he wants Canadian businesses to work with Beijing on its Belt and Road Initiative, also known as BRI, under the watch of Western governments .
Ambassador Cong Peiwu says Canada can use this initiative to reduce global carbon emissions and fight poverty.
He rejects warnings from Canada’s peers that the plan would allow Beijing to coerce developing countries.
Here’s a look at what China is offering and why some are sounding the alarm.
What is the Belt and Road?
The Belt and Road Initiative is a massive infrastructure plan that aims to connect Asia, Europe and Africa through a series of railways, ports, bridges and coal-fired power plants, some of which follow trade routes taken along the ancient Silk Road.
Beijing launched this initiative ten years ago. The Chinese Communist Party government says its intention is to replicate China’s rise out of poverty by boosting growth in developing countries.
PHOTO NICOLAS ASFOURI, ASSOCIATED PRESS ARCHIVES
Xi Jinping raises his glass at the Belt and Road Forum in Beijing in April 2019.
The Canada West Foundation says Belt and Road projects are key to understanding Beijing’s relations with other countries – and its efforts to boost the country’s reputation in the Global South.
“It is part a tool of foreign influence, part an international development project, and an important goal of making China more competitive,” reads an analysis by the China think tank. Calgary. “The BRI creates both opportunities and challenges. »
Beijing says the initiative is not aimed at spreading its governance model, but experts say it nonetheless represents a challenge to Western influence because it gives China leverage over supply and production chains .
Who supports the initiative?
UN Secretary-General António Guterres hailed the initiative as a model of cooperation among countries in the Global South, saying it has “immense potential” to improve living standards and slow climate change.
In 2019, the World Bank estimated that the Belt and Road Initiative could help lift 7.6 million people out of extreme poverty, as well as 32 million people out of moderate poverty. This is largely because it connects large rural areas to economic opportunities and cheaper products.
Many developing countries hosting BRI projects say the financing is much more accessible than what Western institutions offer and is better aligned with local government priorities.
Yet an analysis from the Munk School of Global Affairs and Public Policy notes that such praise often comes from autocratic countries that pursue projects that Western financiers consider too risky.
What criticism does she face?
U.S. think tanks have derided the initiative over its environmental impacts and allegations that China is using the project as a tool of economic coercion.
After helping build coal plants, Beijing changed its plan last fall to focus on mitigating climate change and preventing corruption.
But global financing bodies like the World Bank are still calling for more transparency in how projects are financed to guard against “debt trap diplomacy”, that is, when a country receives a loan that he probably can’t repay and then has to compensate by transferring assets or taking certain political positions.
China rejects claims that it engages in predatory lending, arguing that it is making its expectations clear to developing countries. Beijing blames debt problems on difficult economic recoveries from the COVID-19 shock.
“(If) anyone suggests that China is a disruptive global power, that is certainly not consistent with the facts,” Cong Peiwu said in an interview with The Canadian Press.
Why is China looking for new investments?
China has spent $1 trillion on the initiative so far, but has cut spending in recent years as some countries struggle with debts related to the project.
Chinese President Xi Jinping marked the initiative’s first decade last October by saying it would move “from physical connectivity to institutional connectivity,” with a focus on digital infrastructure, training and exchanges. of international students.
Jeremy Paltiel, a professor at Carleton University, said this reflects the failure of BRI projects in countries burdened by bureaucracy, instability and poor governance, leading China to change course.
“They have been grilled and they are now talking about high-quality investments,” explained this specialist in Canada-China relations. “They might also have less money to spend, because the Chinese economy is not doing very well. »
What is Beijing’s message to Canadian investors?
Ambassador Cong calls on Canadian companies to invest directly in BRI projects in third countries.
PHOTO DOMINICK GRAVEL, LA PRESSE ARCHIVES
Chinese Ambassador to Canada, Cong Peiwu
Canada also places a lot of emphasis on the green economy and its transition to a circular and low-carbon economy. So I think we would be interested in doing things like that – not just bilateral, but also fully multilateral, in this area.
Cong Peiwu, Chinese Ambassador to Canada
Mr. Cong added that Canadian companies should consider going to China and thinking about how they can reap benefits from these projects while contributing to a better world.
Additionally, Cong said Canadian companies could win lucrative contracts to build projects. He gave the example of the American elevator company Otis which contributed to the construction of railway stations in Egypt through the BRI.
Should businesses be careful?
The Canada West Foundation says the initiative is already impacting the way Canadian businesses and development projects operate in countries from Indonesia to Nigeria.
He notes that Canada’s engineering and design sectors could benefit from global contracts and that an increase in critical infrastructure could help boost exports, both for Canadian companies and their foreign competitors.
But Mr. Paltiel recalled that any Canadian company involved in a BRI project would likely face criticism, particularly from south of the border.