Debt trap

China says don’t fear Belt and Road

Chinese President Xi Jinping sought Friday to bat away concerns about his ambitious Belt and Road Initiative (BRI), saying his global infrastructure project will have "zero tolerance" for corruption while vowing to prevent debt risks.In a speech kicking off the BRI summit, Xi also offered soothing remarks to the United States (US) over subsidies, the yuan and trade as the two sides head into fresh high-level talks next week.Xi's signature foreign policy aims to reinvent the anc

27 April 2019
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Malaysia saves US$5 billion

After coming into power last year, the Alliance of Hope (Pakatan Harapan)-led government of Malaysia had decided to halt the progress of local projects that were run by China-based companies. Two of these were railway projects – the High-Speed Rail (HSR) and the East Coast Rail Link (ECRL).

18 April 2019
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China's Belt and Road dreams under pressure

Chinese President Xi Jinping already had plenty of reasons to rethink his grand plan to build railways, ports and other infrastructure across the globe. Malaysia has given him 20 billion more.The Malaysian government’s move to cancel a China-financed high-speed rail link across the Malay Peninsula raised new questions about Xi’s so-called Belt and Road Initiative (BRI).

2 February 2019
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ASEAN: Outlook for 2019 Part 2

Aside from election fever and concerns over free trade, it is likely that Southeast Asia will play a much bigger role in global geopolitics in 2019.

7 January 2019
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China's Belt and Road tempts states

China's massive Belt and Road Initiative (BRI) building push may create debt risks but is also responding to major infrastructure gaps in Asia and could boost global trade, World Bank officials say.The relatively upbeat assessment of a sometimes-controversial programme comes despite the debt crisis now faced by Pakistan, a recipient of massive Chinese loans.China launched the ambitious plan in 2013 under President Xi Jinping, seeking to link Asia, Europe and Africa with a network of port

16 October 2018
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Is The BRI A Corruption Magnet?

China’s Belt and Road Initiative (BRI) was intended to empower developing countries with improved infrastructure and trade relations. In the five years since it was mooted, the BRI is now being demonised as a debt-trap that ensnares poor nations into subservience to China. Another unintended consequence is its alleged connection to corruption.Infrastructure projects are notoriously vulnerable to corruption, featuring inflated costs and kickbacks.

10 October 2018
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The China backlash

On a recent official visit to China, Malaysian Prime Minister Mahathir Mohamad criticized his host country’s use of major infrastructure projects – and difficult-to-repay loans – to assert its influence over smaller countries.

30 September 2018
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Will the Belt and Road Initiative put the region in a debt trap?

In December last year, Sri Lanka formally handed over its strategic port of Hambantota to China on a 99-year lease after failing to pay its debt to Chinese firms. The port was first developed in 2008 with the financial backing of Chinese banks. However, it soon developed a reputation as a white elephant due to mounting losses.

14 May 2018
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