China’s trillion dollar plan to dominate global trade

China’s trillion dollar plan to dominate global trade


There’s a new highway in Pakistan.
And a new rail terminal in Kazakhstan.
A sea port in Sri Lanka recently opened.
As well as this bridge in rural Laos.
What’s interesting is that they’re all
part of one country’s project that spans
3 continents and touches over 60% of the world’s
population.
If you connect the dots, it’s not hard to
see which country that is.
This is China’s Belt and Road Initiative — the
most ambitious infrastructure project in modern
history that’s designed to reroute global
trade.
It’s how China plans to become the world’s
next superpower.
It’s 2013 and Chinese president, Xi Jinping
is giving a speech in Kazakhstan where he
mentions the Ancient Silk Road:
A network of trade routes that spread goods,
ideas, and culture across Europe, the Middle
East, and China as far back as 200 BC.
He then says:
“we should take an innovative approach and
jointly build an economic belt along the Silk
Road”
A month later, Xi is in Indonesia:
“The two sides should work together to build a maritime silk road for the 21st century”
These two phrases were the first mentions
of Xi’s legacy project, the multi-trillion
dollar Belt and Road Initiative, or BRI.
They’re also the two components of the plan.
There’s an overland Economic Belt of 6 corridors
that serves as new routes to get goods in
and out of China.
Like this railroad connecting China to London.
And these gas pipelines from the Caspian sea to
China
And a high-speed train network in South East
Asia.
Then there’s the maritime silk road — a
chain of seaports stretching from the South
China Sea to Africa that also directs trade
to and from China.
The BRI also includes oil refineries, industrial
parks, power plants, mines, and fiber-optic
networks – all designed to make it easier
for the world to trade with China.
So far, over 60 countries have reportedly
signed agreements for these projects.
And the list is growing, because China promotes
it as a win-win for everyone.
Take, for example, the BRI’s flagship project:
Pakistan.
Pause for Pakistan
Like many countries in Central and South Asia,
Pakistan has a stagnant economy, and a corruption
problem.
It wasn’t a popular place for foreign investment,
that is until China came along.
In 2001, China offered to build a brand new
port in the small fishing town of Gwadar.
By 2018, the port as well as highway and railway
networks became a $62 billion dollar Corridor
within the BRI.
It’s where the Economic Belt meets the Maritime
Silk Road.
And it seemed to benefit both countries.
Pakistan saw its highest GDP growth in 8 years
and forged a tight relationship with a major
world power.
China, on the other hand, secured a new alternative
route for goods, especially, oil and gas from
the Middle East.
Through projects like these, it also found
a way to boost its economy.
Chinese construction companies that had fewer
opportunities within their own country saw
a huge boost from BRI contracts — 7 out
of the 10 biggest construction firms in the
world are now Chinese.
What tips the balance in China’s favor even
more is a requirement that it be involved
in building these projects.
In Pakistan for example, Chinese workers have
directly built projects, like this highway
here, and a Chinese firm has worked with locals
on a railway here in Serbia.
China’s involvement is one of its very few
demands and that’s set these deals apart
so far.
See, typically, to get investment from the
West, countries have to meet strict ethical
standards.
But China’s offered billions of dollars
— mostly in loans — with far fewer conditions.
So, it’s no surprise the BRI has been a
big hit with the less-democratic countries
in the region.
China has signed agreements with Authoritarian
governments
Military regimes.
And some of the most corrupt countries in
the world.
It’s even affiliated with, Afghanistan,
Ukraine, Yemen, and Iraq; all currently splintered
by conflict.
Because of China’s willingness to loan money
to unreliable countries, many experts have
called the BRI a risky plan.
Eventually, these countries will have to pay
China back — but corruption and conflict
make that payback unlikely.
A recent report found that many countries
indebted to China are vulnerable, including
8 that are at high risk of being unable to
pay.
So why does China keep lending?
Because there’s more to the BRI than just
economics:
In Sri Lanka, China loaned about 1.5 billion
dollars for a new deep-water port.
It was a key stop on the Maritime Silk Road.
But by 2017 it was clear Sri Lanka couldn’t
pay back the loan, so instead, they gave China
control of the port as part of a 99-year lease.
China also controls the strategic port in
Pakistan – where it has a 40-year lease, It’s
pushing for a similar agreement in Myanmar,
and it just opened an actual Chinese naval
base in Djibouti.
These are all signs of what’s called the
String of Pearls theory.
It predicts that China is trying to establish
a string of naval bases in the Indian Ocean
that will allow it to station ships and guard
shipping routes that move through the region.
So while China’s not getting its money back,
its still achieving some very important strategic
goals.
China’s growing influence challenges the
status of the US, which has been the world’s
lone super-power for the last several decades.
Isolation is trending in the US meaning it’s
investing less and therefore losing influence
around the world.
The BRI is China’s way of leveraging power
to become a global leader.
By building relationships and taking control
of global trade, China is well on its way.

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100 thoughts on “China’s trillion dollar plan to dominate global trade

  1. Vox Atlas is a new series looking into the big foreign policy stories shaping the globe, produced by Sam Ellis. Check out the rest of season one of Atlas here – and let us know what stories you want to see: http://bit.ly/2SThVsf

  2. India is to China as China is to the US, another rising superpower. Before the British left India, India could have left united and instead was split in two. Pakistan is to India as Taiwan is to China. We can see that China is much more ruthless in dealing with its future opponent than the US was in dealing with China, the US actively aided China's rise until recently and didn't aid Taiwan too much.

  3. Germany, the USA, Japan, Singapore, Taiwan ROC all invested heavily in China and relocated many factories there in the 1990s. China's economy grew tremendously. How was this not a "win-win"? Now China is playing the victim card and claiming that only it can help to develop other countries economies.

  4. I am best economist in our village, I watched this video, it scares me, China do this because they want rule the world, like Hitler

  5. China is only a country with a per capita GDP of $8,000, and it still has a long way to go to become a developed country, after all, we have nearly 1.4 billion people.

  6. In fact, I read a lot of comments. I feel that everyone really cares about China, but really don’t understand the real China. All of them are through the fragmentation of the Internet to understand China.

  7. China "the Sleeping Giant" has completely woken up. It can really lead the global trade in just a few years. 👍🏻
    I must say chinese are really good when it comes to business. Nobody can beat them.

  8. All I can say is “all you Chinese people need to get the f😡ck out of spratly island and stop bullying. That belongs to the Philippines 🇵🇭 my home country👊🏽

  9. I’m from Malaysia. China has traded with Malaysia for 2000 years. In those years, they have been world’s biggest power many times. Never once they sent troops to this region. In 16th, 17th, 18th centuries, the Portuguese, Dutch and British came, we were colonized by each. The presence of China’s power is welcomed in this region. It provides economic benefits. It also enrich cultural experience in the region. We are not afraid of China being powerful in the region, we welcome the rise of China. China don't export ideology, they don't export chaos.

  10. This looks feasible and mighty, but people who get benefit are limited. Correction is a big issue in China.

  11. China is becoming rich….hey but what about Chinese people??
    people are working hard but can't buy a land and 5 million smart homes are empty because many can't afford…
    china is investing in sri lanka which will be under the water after 2036🤣 due to global warming.

  12. Trump wants to build the wall…. dear trump uncle, illegal immigrants don't 'jump over the wall' they have better ways to enter states…….bbbbbbut you are the one who will build that wall to make another few millions

  13. Wow, another conspiracy about Chinese Economical Colonialism. Why you suspect everyone like you, country establish on the pirate and thief, do such foolish things in the history and pretend you are right. Culture assimilation and ethnic genocide have embed into the memories of every colony.

  14. US sells weapons to Saudi: promoting free trade and democracy
    China builds roads and ports: debt trap, feeding authoritative and military regimes

  15. India should develop it's infrastructure at it's own then only can help it's neighbors against China s will and will be able to save it's neighbors from Chinese Slavery

  16. China operates predatory lending to gain financial control over countries when they can't afford to pay them back, using this leverage to gain the ability to build this infrastructure but do we really believe it just about trade? America is cut off from a lot of the world by sea, yet it still became the dominant power.

  17. This is why India needs plenty of islands in South Indian oceans. Pacific and Arabic oceans. The problem is no resting ground for trade transit.

  18. everything that china is doing is legal yet watch how the u.s. try to stop china because they think what china is doing is "wrong"

  19. Are we just going to forget that the US and China are each other’s most important trade partners? The reason China has grown so much is because of US investment and trade in the nation. They may pretend to not like each other but the truth is that they mutually benefit from each other.

  20. Wait for some years, India will be in "hold my beer" mode.

    Read history and you will see. Countries who rise second become super powers

  21. China is a great country, Just imagine we in Iran are under unfair sanctions and China is the only country that has been helping us, I was a student in Electronic and Control engineering but I couldn't buy anything from other countries to make my PCBs and setup. but Chinese people purchased and sent them for me.

  22. After WW2 USA use marshall plan to get influence, now they all fall apart
    Now china use this to make influence, how long will this last?
    Only after that we can know which one is more evil

  23. What a way to put a negative twist on something positive. China is making better/fair deals with the world that's why they're taking over!

  24. this is quite normal for a huge economy to find a way out for its massive production capacity, UK used guns and battleships, US used dollars and guns, why would someone talk trash on china's much more friendly move? i guess it is perhaps a lack of knowledge of history. go find a book and do some research on what the former super power UK and present super power US were doing when they were establishing their global power status.

    as for the debt trap BS, china is not forcing any country to join. if you chose to join, you pay for what you get. I don't see any problem in that and this is probably the essential norm of any country with a well-established law system, like most developed countries in the world.

  25. Well, if you think someone lend you money to ask you to do your own business is very bad, then you are with USA government. USA Govt policy is American First. why??? any logical behind that? All they do is : if USA can not be richer and better, then they stop others to be richer and better.

  26. You need to be careful of what you let in your country, the very things you think would be useful could later put you in a pit. There are good and bad in every country but china isnt a good friend politically speaking. I think we all need to watch our backs.

  27. Long live pak china friendship. Mostly people comparing this cpec project and talking that everything happening same like in sri lanka but Pakistan have did whole agreement which is in favour of Pakistan. And china trying their best to develop those areas which are poor and low interest areas in china and Pakistan also doing this in Baluchistan to change and development projects those are beneficial for the people of Baluchistan . Same thinking of china and Pakistan.
    Yes china have more benefits then Pakistan china easily reach to many countries and can make trade possible with them but hopefully this projects can also make more advantages for Pakistan in future.
    I am saying this in confidence because of our current leader imran khan and pak agency ISI they are enough to understand future policy and steps for agreements. I don't need to worry

  28. CHINA ITU SERAKAH…
    DAN SAYA SEBAGAI WARGA NEGARA INDONESIA….
    MENOLAK KERAS KERJASAMA TERHADAP CHINA!!! KAMI LEBIH BAIK BEKERJA SAMA DENGAN JEPANG!!!

    CHINA TIDAK MENGUNTUNGKAN BUAT INDONESIA…
    PEMIMPIN NEGARA SAYA BUTA AKAN HAL ITU…. PLEASE… HELP MY COUNTRY…..

  29. Lol why us is rich ? Why people really want to go to us ? Yeah cuz it’s a rich country and being strong but ,, it all benefitted from Wold WAR!! If without 2 word wars ,America can’t be so powerful. Ancient Chinese people created gunpowder, compass, and many other technologies to lead the world. They could learn from Westerners to colonize and expand, but China did not do so. (In other words, if China had not introduced four major inventions, such as paper-making gunpowder, into Europe at that time, there would not have been an industrial revolution in Europe. Nor will China was defeated, nor will some self-righteous Americans right gagging here.

  30. Did you notice that no silk roads lead to the Americas? That has changed since this clip was made because new treaties are being draft to Mexico.

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