Belt and Road Initiative

The Belt and Road Initiative poses a significant challenge to U.S. economic, political, climate change, security, and global health interests.
Mar 23, 2021
The Belt and Road Initiative poses a significant challenge to U.S. economic, political, climate change, security, and global health interests.
Mar 23, 2021
  • China
    Countries in China’s Belt and Road Initiative: Who’s In And Who’s Out
    Jennifer Hillman and David Sacks are codirectors of the CFR-sponsored Independent Task Force report on a U.S. Response to China’s Belt and Road Initiative, which is co-chaired by Jacob J. Lew and Gary Roughead. In the fall of 2013, shortly after assuming power, Chinese President Xi Jinping proposed building a land-based “Silk Road Economic Belt,” extending from China to Central and South Asia, the Middle East, and Europe, and a sea-based “21st Century Maritime Silk Road,” connecting China to Southeast Asia, the Middle East, Africa, and Europe via major sea lanes. Together, these came to form the Belt and Road Initiative (BRI), still known officially in Chinese as “One Belt, One Road,” which quickly became Xi’s signature foreign policy undertaking. Under BRI, Chinese banks and companies seek to fund and build roads, power plants, ports, railways, 5G networks, and fiber-optic cables around the world. BRI has a wide reach, but which countries are participants? The answer is surprisingly hard to determine, since China is opaque about the exact contours of BRI and there are different levels of participation in the initiative. But our CFR Independent Task Force report outlines what we were able to discover about the participating countries in BRI. Initially, BRI sought to connect countries in Central, South, and Southeast Asia with China. In the two years following BRI’s launch, only ten countries formally joined the initiative by signing a memorandum of understanding (MoU) or cooperation agreement. In 2015, however, BRI began to outgrow its initial corridors, as an additional seventeen countries joined. In 2017, for instance, China extended BRI to Latin America, describing it as a “natural extension of the 21st Century Maritime Silk Road.” In the fall of 2017, BRI was incorporated into the Chinese Communist Party’s constitution. Following that development, a burst of activity ensued, with an additional sixty-one countries joining BRI in 2018 alone. In all, 139 countries have joined BRI, with the Democratic Republic of the Congo standing as the most recent entrant. BRI is now a truly global endeavor: thirty-nine countries in sub-Saharan Africa have joined the initiative, as well as thirty-four in Europe and Central Asia, twenty-five in East Asia and the Pacific, eighteen in Latin America and the Caribbean, seventeen in the Middle East and North Africa, and six in South Asia. These 139 members of BRI, including China, account for 40 percent of global GDP. Sixty-three percent of the world’s population lives within the borders of BRI countries. While China emphasizes the benefits of BRI for developing countries, Beijing has enlisted countries of all income levels to endorse the initiative. Twenty-six low income countries and thirty-nine lower middle income countries have joined the initiative, accounting for just under half of all the participants. By contrast, forty-one upper middle income countries, as well as thirty-three high income countries, have signed on, accounting for over half of the BRI participants. BRI members include U.S. allies and partners such as Greece, Italy, Saudi Arabia and the United Arab Emirates, as well as countries that align with China geopolitically such as Cambodia and Laos. While BRI members are diverse, those countries that have refrained from joining BRI are generally more democratic, politically stable, and economically developed than those that have endorsed the initiative. Not all BRI members, however, host BRI projects. Some countries merely formally endorse BRI as a concept and pledge to cooperate with China to promote the initiative. In Italy’s nonbinding MoU with China, for example, the two countries pledged to “work together within the Belt and Road Initiative (BRI) to translate mutual complementary strengths into advantages for practical cooperation and sustainable growth.” Italy and China committed to enhancing their policy dialogue, cooperating to develop infrastructure connectivity, expanding trade and investment, and building people-to-people ties—but the MoU does not identify specific projects. As our Task Force report details, this MoU was largely symbolic and there has been little follow-up since it was inked. Indeed, after signing this MoU in Rome, Xi traveled to Paris, where he announced significantly more Chinese investment, even though France did not sign on to BRI. In many instances, the push to get countries to join BRI is likely motivated less by a desire to build infrastructure and more by a goal of increasing China’s narrative power and BRI’s appeal to the developing world. As part of BRI, Xi Jinping invites heads of state to China for Belt and Road forums, contributing to the view that Beijing is an economic power on par with the United States. At the first Belt and Road Forum in May 2017, representatives from over one hundred countries descended on Beijing, while UN Secretary-General Antonio Guterres lauded BRI’s “immense potential,” praised it for having “sustainable development as the overarching objective,” and pledged the “United Nations system stands ready to travel this road with you.” With 139 countries now formally affiliated with BRI and endorsing the project, this signals to prospective members that many of the world’s most powerful and economically dynamic countries have vetted BRI, and therefore they can embrace BRI projects. If or when China approaches a country about initiating a BRI project within its borders, the country can rest assured that the vast majority of the world has signed onto BRI. In recent years, BRI has extended its reach to the corners of the globe. Even if not every BRI country hosts BRI projects, their endorsement of the initiative lends credibility to it. In the coming years, Beijing will likely continue to lobby countries to sign on to the initiative, focusing its attention on Latin America and Western Europe, where regional heavyweights such as Argentina, Brazil, France, Germany, and Spain remain outside of BRI.
  • China
    China’s Belt and Road
    The Belt and Road Initiative (BRI), Chinese President Xi Jinping’s signature foreign policy undertaking and the world’s largest infrastructure program, poses a significant challenge to U.S. economic, political, climate change, security, and global health interests.
  • Asia
    How Should the United States Compete With China’s Belt and Road Initiative?
    As the United States embarks on an era of great power competition with China, it is incumbent on U.S. policymakers to better understand BRI and the strategic and political implications of the initiative.
  • China
    Podcast: Claudia Trevisan on China's Influence in Latin America
    Podcast
    From São Paulo to Quito, Chinese investment has exploded across Latin America over the last two decades. China now rivals the United States as a leading economic power in the region. Yet China’s economic importance has not translated into a significant expansion of its influence over the region’s media and civil society. Tune in as Claudia Trevisan, executive director of the Brazil-China Business Council, shares her on the ground perspective on China’s influence across Latin America with Elizabeth Economy, Senior Fellow for China Studies at CFR and the Hoover Institution.   Click here to read Claudia Trevisan’s full paper on this topic.
  • China
    Reimagining China-Brazil Relations Under the BRI: The Climate Imperative
    At this moment of profound global uncertainty and unprecedented socioeconomic crisis in Brazil, it is difficult to speculate about the future direction of the China-Brazil relationship. The two countries would have much to gain by adopting a shared commitment to social and environmental sustainability.
  • China
    The Extension of the Digital Silk Road to Latin America: Advantages and Potential Risks
    The Digital Silk Road's extension to Latin America has had both advantages and potential risks for states in Latin America and the Caribbean.
  • China
    China’s Growing Trade and Investment in Latin America Outpaces Its Influence in the Region’s Media and Civil Society
    The dramatic growth in trade and investment relations between China and Latin America and the Caribbean (LAC) has not yet translated into a significant expansion of Beijing’s influence over the region’s media and civil society.
  • Asia
    Assessing China’s Digital Silk Road: A Transformative Approach to Technology Financing or a Danger to Freedoms?
    As part of China’s massive Belt and Road Initiative (BRI), the biggest infrastructure undertaking in the world, Beijing has launched the Digital Silk Road (DSR). Announced in 2015 with a loose mandate, the DSR has become a significant part of Beijing’s overall BRI strategy, under which China provides aid, political support, and other assistance to recipient states. DSR also provides support to Chinese exporters, including many well-known Chinese technology companies, such as Huawei. The DSR assistance goes toward improving recipients’ telecommunications networks, artificial intelligence capabilities, cloud computing, e-commerce and mobile payment systems, surveillance technology, smart cities, and other high-tech areas. China has already signed agreements on DSR cooperation with, or provided DSR-related investment to, at least sixteen countries. But the true number of agreements and investments is likely much larger, because many of these go unreported: memoranda of understanding (MOUs) do not necessarily show whether China and another country have embarked upon close cooperation in the digital sphere. Some estimates suggest that one-third of the countries participating in BRI—138 at this point—are cooperating on DSR projects. Chinese firms are bringing technology and additional benefits to developing countries by establishing training centers and research and development programs to boost cooperation between scientists and engineers in these countries and their Chinese counterparts, and to transfer technical knowledge in areas such as smart cities, artificial intelligence and robotics, and clean energy, among others. Still, some democracies have raised serious concerns about the Digital Silk Road. They worry that China will use DSR to enable recipient countries to adopt its model of technology-enabled authoritarianism, which would be detrimental to personal freedoms and sovereignty in those countries. Moreover, allowing Chinese firms to build countries’ fifth-generation (5G) networks and other infrastructure, and to set technology standards that could become the norm in many countries, could risk espionage and coercion of other states’ politics if Beijing used data breaches to blackmail political elites in those states. To learn more about the Digital Silk Road and its implications, see my new CFR Interactive.
  • Emerging Economies
    Transsion: a Chinese Prodigy in Africa?
    The Chinese company has dominated mobile phone markets in Africa, though not without courting controversy.
  • China
    China’s Approach to Global Governance
    Learn about China's evolving approach to global governance and how it has shifted strategy under President Xi Jinping related to trade, the belt and road initiative, and the coronavirus pandemic.
  • China
    Exporting Authoritarianism
    Podcast
    China is undertaking massive infrastructure projects across the world and loaning billions of dollars to developing nations. On paper, the objective is to build a vast trade network, but is China also exporting authoritarianism?
  • China
    China, a Major World Bank Borrower and Competitor, Must Stop Sheltering BRI Debt from G20 Standstill
    As we explained in Foreign Affairs on April 27, China is trying quietly to exempt its massive Belt and Road Initiative (BRI) infrastructure loans to poor countries from its agreement to participate in the G20 moratorium on debt-collection through the end of the year. While the World Bank is disbursing emergency aid to its poorest borrowers, China—a major World Bank borrower, with $16 billion in outstanding loans—continues, effectively, to use cheap World Bank financing to fund its own higher-interest loans to other World Bank borrowers.  As the graphic above shows, Pakistan, South Africa, and Ethiopia owe China considerably more than they owe the World Bank.  Although China’s BRI loans are shrouded in secrecy, we estimate outstanding BRI debt in 67 countries we were able to track through 2017 at at least $135 billion.  Given that more countries have signed on since then, total outstanding BRI debt is probably nearer to the $196 billion owed to the World Bank. Given the scale of BRI debt and the horrific impact of the COVID-19 pandemic in poor nations, China has a moral obligation to join the G20 moratorium in full—including its BRI loans.