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Group photo during the third Belt and Road Forum for International Cooperation. Photo: Kremlin/dpa

Economy Global Economy

Global Impact: Xi Jinping, Vladimir Putin top the bill as China pledges US$107 billion for Belt and Road Initiative

Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world
In this issue, we look back at the third Belt and Road Forum for International Cooperation, which marked the 10th anniversary of the initiative

Belt and Road Initiative

Orange Wang

Published: 2:00pm, 24 Oct 2023

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Despite growing questions about the Belt and Road Initiative, President Xi Jinping told world leaders this week that Beijing remains committed to investing more and has a new vision for the signature project as it enters its second decade.

As the country’s biggest and arguably most important diplomatic charm offensive this year, the third Belt and Road Forum for International Cooperation concluded on Wednesday in Beijing, where security was significantly tightened for the event.

The Chinese leadership touted the two-day summit as another “milestone” for the Belt and Road Initiative, having delivered “far more” than the previous one held in 2019.

02:48

Chinese President Xi Jinping unveils 8-point vision for nation’s Belt and Road Initiative at forum

Speaking at the opening ceremony, Xi pledged the equivalent of US$107 billion to the project for the next five years as part of an eight-point action plan, matching a commitment given over the same timescale in 2017.

More than 20 heads of state or government – including Russian President Vladimir Putin – descended on the Chinese capital city to join the gathering that marked the 10-year anniversary of the mega international development strategy.

The number, however, fell from 37 four years ago. Leaders of major Western countries were absent, except Hungarian Prime Minister Viktor Orban. Italy, Switzerland, Greece and the Czech Republic had all sent their top representatives to both the 2017 and 2019 summits, but not this year.

Italy was considering quitting the initiative by the end of 2023, just four years after it became the first member of the Group of Seven (G7) to sign on to the scheme, with the Italian defence minister saying earlier this year that joining the Belt and Road Initiative was an “atrocious” decision.

‘Ironclad friend’: China-Serbia ties strengthen with landmark trade deal

Also, in a break from the previous two summits, the forum did not hold a round-table session nor produce a joint communique, instead issuing a chair’s statement.

Compared with 10 years ago when it was first unveiled, the belt and road scheme – viewed by many as analogous to the United States’ Marshall Plan from 1948, in terms of expanding Beijing’s global influence – finds itself in a more challenging situation both at home and abroad.

An increasing number of critics, especially in Washington and some other Western countries, have accused Beijing of engaging in “debt trap diplomacy” – leaving countries saddled with loans they cannot afford.

There has also been emerging scepticism about the long-term sustainability of the project, on the grounds of China’s economic slowdown.

Russia’s invasion of Ukraine and the Israel-Gaza war have both exposed geopolitical risks facing the project in a more divided and uncertain post-pandemic world.

03:48

Security tight in Chinese capital as foreign leaders arrive for Belt and Road Forum in Beijing

As Xi rolled out the red carpet for representatives from countries mostly in the Global South, his US counterpart, Joe Biden, visited Tel Aviv on Wednesday.

Xi called for an immediate ceasefire in the Israel-Gaza war when meeting Egyptian Prime Minister Mostafa Madbouly on Thursday on the sidelines of the forum.

Attending the forum has provided a rare stage for Putin – who is wanted by the International Criminal Court and has been increasingly isolated since Moscow invaded Ukraine – to meet other state leaders.

In a white paper released ahead of the summit, Beijing said the scheme will continue to be its “overarching plan and its top-level design” for opening up and international cooperation.

Addressing the forum, Xi once again warned against unilateral sanctions, economic coercion, and decoupling.

‘Highly complementary’: China, Russia lay out plans for regional integration

Extending its vision to the sci-tech realm, Beijing launched the Global AI Governance Initiative at the event, one day after Washington plugged loopholes in its export controls on China’s access to advanced AI chips.

Apple chief executive Tim Cook also made a surprise visit to China and met with senior officials in Beijing.

The belt and road scheme has witnessed an increasing number of similar infrastructure strategies proposed by other countries, including the India-Middle East-Europe Economic Corridor, the European Union’s Global Gateway initiative, and the US$600 billion Partnership for Global Infrastructure and Investment introduced by the US and other G7 members.

When wrapping up the summit, Foreign Minister Wang Yi on Wednesday pushed back at those who view such programmes through a “politicised” lens, stressing that Beijing is willing to align with all other connectivity initiatives, but also does not shy away from competing.

60-Second Catch-up

Xi Jinping signals China will stay the course in development pitch to Global South

China, Russia pledge belt and road infrastructure integration as Xi Jinping, Vladimir Putin lay out blueprints

Hong Kong, Beijing pledge 15 billion yuan for investment platform focusing on renewable energy, infrastructure projects

Xi Jinping calls for ceasefire in Israel-Gaza war, says two-state solution is ‘fundamental way out’

Series: 10 years of China’s Belt and Road Initiative

China launches AI framework, urging equal rights and opportunities for all nations

As it happened: Xi Jinping unveiled new action plan for Belt and Road Initiative, Vladimir Putin gave first international address since Ukraine war

Opinion: Xi leaves no doubt belt and road plan will lead to further prosperity, stability

China, Serbia slash tariffs in landmark trade deal

Deep dives

From railways to 5G: why China is plugging into the Digital Silk Road

Belt and road infrastructure deals have taken a back seat as countries struggle with debt and their priorities shift, analysts say
Digital projects are ‘taking centre stage’ as Beijing tries to cement its status as a global tech leader and keep the initiative relevant

China will hold its third Belt and Road Forum on Tuesday and Wednesday to celebrate the 10-year anniversary of this mammoth investment initiative amid doubts of its benefits and sustainability. In the first of a three-part series, Dewey Sim looks at how the Digital Silk Road has emerged as a driving force to keep the initiative appealing and help promote China as a global technology leader.

At the first Belt and Road Forum for International Cooperation in 2017, Chinese President Xi Jinping touted the global infrastructure-building plan as “a project of the century”.

Is China’s Belt and Road Initiative running out of steam?

A decade after the initiative started, the amount being invested in projects in Africa has dipped to its lowest level
While observers say the strategy will continue, it seems ‘small and beautiful’ is its new catch-cry with developers

China hosts the third Belt and Road Forum this week, marking the 10-year anniversary of its multinational investment initiative. In the second ofa three-part series, Jevans Nyabiage looks at whether concerns over debt burdens and a sluggish domestic economy might have an impact on investment.

At Kenya’s Miritini Railway Station, near the coastal city of Mombasa, a statue of legendary Chinese explorer Zheng He sits on a plinth greeting passengers, more than 600 years after his voyage to the town of Malindi, further up the coast.

China’s railways in poor nations cut through mountains — and underdevelopment?

Railway diplomacy is a key part of Beijing’s Belt and Road Initiative, especially in developing countries
Projects include a line connecting Vientiane to Kunming and a high-speed link from Jakarta to Bandung

China hosts the third Belt and Road Forum this week, marking the 10-year anniversary of its multinational investment initiative. In the final of athree-part series, Laura Zhou looks at how Beijing is pushing ahead with railway diplomacy in developing countries.

On the desolate northern outskirts of the Laotian capital Vientiane, a grand new railway station with a traditional curved roof seems to be sending a message: this country is going places.

Views on Xi’s ‘unique alternative’ split along geopolitical lines

Belt and road forum marked 10 years of a strategy that has been criticised by many developed economies
Reactions have been divided, with much of the focus on China’s embrace of Russian leader Vladimir Putin

As Beijing hosted dozens of world leaders for a forum marking a decade of its Belt and Road Initiative, much of the focus was on China’s embrace of Russian President Vladimir Putin, who made a rare trip abroad to attend the event.

Reaction to the two-day summit that ended on Wednesday has been largely divided along geopolitical lines, with Washington calling that embrace “unfortunate”.

Hong Kong can foster cultural exchanges under belt and road plan: John Lee

City leader Lee also touts Hong Kong’s role as cultural hub connecting China with rest of world at Belt and Road Forum for International Cooperation
‘As our tourism industry sees a strong recovery, we look forward to welcoming friends from our belt and road partners to Hong Kong,’ he says

Hong Kong as a free and open city is well-positioned to foster people-to-people exchanges under the Belt and Road Initiative, Chief Executive John Lee Ka-chiu has said, as he invited world leaders to visit the financial hub during its “strong” tourism recovery.

The city leader on Wednesday also touted Hong Kong’s role as a cultural hub connecting the nation with the rest of the world, as he addressed hundreds of attendees on the final day of the Belt and Road Forum for International Cooperation in Beijing.

Why China is turning to sci-tech in new action plan to boost belt and road

China’s president unveils a vision for the infrastructure strategy that could help other countries overcome Western restrictions
Action plan includes harnessing markets and talent of participating countries to power scientific and technological advancement

Science and technology were key features in China’s new action plan unveiled during the third Belt and Road Forum for International Cooperation in Beijing on Wednesday, as the host nation grappled with a growing list of export curbs on key technologies from Western countries.

Chinese President Xi Jinping suggested that his vision for the Belt and Road Initiative could offer a pathway to overcome such challenges to achieve technological and innovation ambitions, adding that China is against “unilateral sanctions” and supply chain disruptions.

Hong Kong open for investment, city leader John Lee tells belt and road forum

Lee tells entrepreneurs from around the globe at Beijing conference to set up in city to tap into belt and road international trade strategy
Chief executive says Hong Kong ideally placed for projects ‘beneficial to people’s livelihoods to achieve development and prosperity for all’

Hong Kong leader John Lee Ka-chiu has called on a Beijing gathering of entrepreneurs from around the world to set up offices in the Asian financial hub to tap into the nation’s Belt and Road Initiative.

Lee, in his first appearance at the high-level Belt and Road Forum for International Cooperation, on Tuesday turned the spotlight on Hong Kong’s role in the country’s economic and trade strategy.

China’s Belt and Road Initiative to get a hi-tech boost, vice-premier vows

Addressing hundreds of business representatives on Tuesday, Vice-Premier He Lifeng calls for greater investments in big data, AI, e-commerce and new energy
Speaking at 10-year anniversary of the belt and road plan, vice-premier also stresses that the initiative’s financing and debts must be ‘sustainable’ in the next decade

China will prioritise hi-tech and new energy in its plans for the Belt and Road Initiative – sectors it views as critical to powering domestic growth over the long run and consolidating its footing in the global supply chain, senior officials said on Tuesday.

Addressing several hundred business representatives from 82 countries and regions, at a conference in Beijing, Vice-Premier He Lifeng set forth the core sectors for the belt and road strategy’s second decade at the third Belt and Road Forum for International Cooperation which marks the 10-year anniversary of President Xi Jinping’s flagship outbound investment plan.

Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world.