Page 62 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
development banks have reportedly been told to partner At the Party’s 19th National Congress held in late October
with the World Bank and other international lenders on of 2017, the Party’s amended charter pledged to “pursue
future projects (Griffiths). the Belt and Road Initiative”. Reuters reporter Jason Lee said
that this is evidence that President Xi’s ambitious project
As of the beginning of 2019, three of the six economic will endure even beyond his tenure. He cited analysts as
corridors planned for the BRI lack any Chinese-funded saying that it also “underscored how the Communist Party
major projects. According to Jonathan E. Hillman, senior has increased its attention to foreign policy and reflects
fellow of the Washington, DC-based Center for Strategic Xi’s growing desire for China to take a leadership role”. And
& International Studies, the BRI’s “sheer scale demands as some analysts describe it, the BRI has now become “too
attention”. Spanning roughly 80 countries, it can claim to important to fail” (Southerland).
cover more than two-thirds of the world’s population,”
says Hillman. “It could include Chinese investments Investment Opportunities
approaching US$1 trillion, seven times what the US spent
during the Marshall Plan.” A recent survey conducted by a The Belt and Road Initiative is slated to be one of the
Singapore-based think-tank shows that many Southeast largest global infrastructure and investment projects in
Asian nations are wary of the Belt and Road Initiative. The history. The underlying economic strategy is complexly
ISEAS-Yusof Ishak Institute polled 1,008 respondents from tied to foreign policy, capital investment from public and
all 10 members states of the Association of Southeast Asian private enterprises, and trade routes. At the core of the
Nations (ASEAN). About 73 percent of the respondents BRI, however, is China’s attempt to extend its presence
believe that China has more political and strategic in the global marketplace by supporting the economic
influence in the region than the US. But the respondents development of neighboring countries. Spending around
to the poll, which was released in January 2019, expressed $150 billion annually in the countries that are participating
concerns about China’s geostrategic ambitions. Fewer in the BRI, China is wielding its commercial clout and
than one in 10 saw China as “a benign and benevolent investing heavily in foreign infrastructure. “It’s bigger than
power,” with nearly half saying that Beijing possesses “an the Marshall Plan, bigger than the Apollo mission, and
intent to turn Southeast Asia into a sphere of influence”. bigger than the Great Wall of China,” says Sheryl WuDunn,
Some 70 percent said that their governments “should be co-author of China Wakes: The Struggle for the Soul of a
cautious in negotiating BRI projects to avoid getting into Rising Power.“This project is a visionary legacy from today’s
unsustainable financial debts to China,” a view described Chinese leadership.” Projects such as setting railway routes
as strongly held in Malaysia, the Philippines, and Thailand. in Bangladesh, building refineries in Saudi Arabia and a
Then, there’s the issue of environmental damage caused new port city in Sri Lanka are just some of the ways that
by the BRI that could threaten global climate progress. this initiative is taking shape. While China is spearheading
the BRI, it has encouraged international participation and
A report published on January 2019 by the Yale School the involvement of local governments. But the country has
of Forestry and Environmental Studies says that the BRI has reiterated that it doesn’t intend for this to be a solo show.
the potential to transform economies in China’s partner “Many of these countries involved are looking for targeted
countries. But the report, authored by Isabel Hilton, a ways to improve infrastructure, update their software, and
London-based writer, broadcaster, and commentator, also find opportunities to exchange information,” says Lincoln
concludes that with its focus on building coal-fired power Leong, CEO of MTR Corporation, a Hong Kong company
plants along the way, the BRI “could also tip the world into that runs the mass transit railway. “Even within the ASEAN
catastrophic climate change”. The report says that building countries alone, what we’re hearing is that in the next 10
the land-based Silk Road Economic Belt and the 21st years, the demand for infrastructure will be worth two to
Century Maritime Silk Road will absorb massive amounts three trillion dollars” (Yuan).
of concrete, steel, and chemicals, creating power stations,
mines, and container ports, many in countries with poor According to the IMF, the “BRI has great potential for
environmental oversight. “While China has imposed a cap China and participating countries. It could fill large and long-
on coal consumption at home,” the report says, “its coal standing infrastructure gaps in partner countries, boosting
and energy companies are on a building spree overseas.” their growth prospects, strengthening supply chains and
China is expected to continue to expand its outreach to trade and increasing employment.” The BRI will have a
new countries through the BRI, partly because it has been strong presence in Eastern Europe, also a prime destination
written into the Chinese Communist Party’s constitution. for China FDI, as the countries there offer a wealth of metals,
62
development banks have reportedly been told to partner At the Party’s 19th National Congress held in late October
with the World Bank and other international lenders on of 2017, the Party’s amended charter pledged to “pursue
future projects (Griffiths). the Belt and Road Initiative”. Reuters reporter Jason Lee said
that this is evidence that President Xi’s ambitious project
As of the beginning of 2019, three of the six economic will endure even beyond his tenure. He cited analysts as
corridors planned for the BRI lack any Chinese-funded saying that it also “underscored how the Communist Party
major projects. According to Jonathan E. Hillman, senior has increased its attention to foreign policy and reflects
fellow of the Washington, DC-based Center for Strategic Xi’s growing desire for China to take a leadership role”. And
& International Studies, the BRI’s “sheer scale demands as some analysts describe it, the BRI has now become “too
attention”. Spanning roughly 80 countries, it can claim to important to fail” (Southerland).
cover more than two-thirds of the world’s population,”
says Hillman. “It could include Chinese investments Investment Opportunities
approaching US$1 trillion, seven times what the US spent
during the Marshall Plan.” A recent survey conducted by a The Belt and Road Initiative is slated to be one of the
Singapore-based think-tank shows that many Southeast largest global infrastructure and investment projects in
Asian nations are wary of the Belt and Road Initiative. The history. The underlying economic strategy is complexly
ISEAS-Yusof Ishak Institute polled 1,008 respondents from tied to foreign policy, capital investment from public and
all 10 members states of the Association of Southeast Asian private enterprises, and trade routes. At the core of the
Nations (ASEAN). About 73 percent of the respondents BRI, however, is China’s attempt to extend its presence
believe that China has more political and strategic in the global marketplace by supporting the economic
influence in the region than the US. But the respondents development of neighboring countries. Spending around
to the poll, which was released in January 2019, expressed $150 billion annually in the countries that are participating
concerns about China’s geostrategic ambitions. Fewer in the BRI, China is wielding its commercial clout and
than one in 10 saw China as “a benign and benevolent investing heavily in foreign infrastructure. “It’s bigger than
power,” with nearly half saying that Beijing possesses “an the Marshall Plan, bigger than the Apollo mission, and
intent to turn Southeast Asia into a sphere of influence”. bigger than the Great Wall of China,” says Sheryl WuDunn,
Some 70 percent said that their governments “should be co-author of China Wakes: The Struggle for the Soul of a
cautious in negotiating BRI projects to avoid getting into Rising Power.“This project is a visionary legacy from today’s
unsustainable financial debts to China,” a view described Chinese leadership.” Projects such as setting railway routes
as strongly held in Malaysia, the Philippines, and Thailand. in Bangladesh, building refineries in Saudi Arabia and a
Then, there’s the issue of environmental damage caused new port city in Sri Lanka are just some of the ways that
by the BRI that could threaten global climate progress. this initiative is taking shape. While China is spearheading
the BRI, it has encouraged international participation and
A report published on January 2019 by the Yale School the involvement of local governments. But the country has
of Forestry and Environmental Studies says that the BRI has reiterated that it doesn’t intend for this to be a solo show.
the potential to transform economies in China’s partner “Many of these countries involved are looking for targeted
countries. But the report, authored by Isabel Hilton, a ways to improve infrastructure, update their software, and
London-based writer, broadcaster, and commentator, also find opportunities to exchange information,” says Lincoln
concludes that with its focus on building coal-fired power Leong, CEO of MTR Corporation, a Hong Kong company
plants along the way, the BRI “could also tip the world into that runs the mass transit railway. “Even within the ASEAN
catastrophic climate change”. The report says that building countries alone, what we’re hearing is that in the next 10
the land-based Silk Road Economic Belt and the 21st years, the demand for infrastructure will be worth two to
Century Maritime Silk Road will absorb massive amounts three trillion dollars” (Yuan).
of concrete, steel, and chemicals, creating power stations,
mines, and container ports, many in countries with poor According to the IMF, the “BRI has great potential for
environmental oversight. “While China has imposed a cap China and participating countries. It could fill large and long-
on coal consumption at home,” the report says, “its coal standing infrastructure gaps in partner countries, boosting
and energy companies are on a building spree overseas.” their growth prospects, strengthening supply chains and
China is expected to continue to expand its outreach to trade and increasing employment.” The BRI will have a
new countries through the BRI, partly because it has been strong presence in Eastern Europe, also a prime destination
written into the Chinese Communist Party’s constitution. for China FDI, as the countries there offer a wealth of metals,
62
