Beijing’s One Belt, One Road project aims to boost trade and connect three billion people in Asia, Africa and Europe.
China’s One Belt, One Road project has been described as the largest overseas investment drive ever launched by a single country.
So far China has pledged $900bn to build ports, highways and power grids in about 60 different countries. When it’s finished, this ultra-modern trade route will give China much easier access to markets all over the world.
But the project has been criticised for a number of reasons. One of the main problems surrounds who really benefits. Infrastructure projects don’t always end in growth. So what happens when the countries involved are unable to pay back their Chinese creditors?
Since the project was first announced in 2013, China’s growth has slowed, but Beijing is pressing ahead, leading some to question China’s expanding political influence via economics.
India, the US, and Australia have declined so far to be part of it although Pakistan and New Zealand have embraced the mega project.
The benefits are quite overwhelming to the fears that exist.
Khurram Dastgir Khan, Pakistan’s Minister of Commerce
While Pakistan is a key part of the plan to connect three billion people in Asia, Africa and Europe via trade routes, what happens to the local economy when all roads lead to Beijing?
China is pumping $55bn into Pakistan to build a China-Pakistan economic corridor, which is a network of road, rail, power and port projects. With Chinese money in it’s back pocket, the Islamabad government is attempting to solve the country’s problem with power outages.
Al Jazeera’s Hoda Abdel Hamid asked Khurram Dastgir Khan, Pakistan’s minister of commerce, whether he’s optimistic.
« There’s a clear sense in Pakistan that Pakistan is about to tackle its energy shortages completely. Pakistan’s public finances have stablised and we have massively controlled our non-development spending. We’ve been able to reduce and hold our budget deficit to under 4 percent, » says Khan.
Asked whether there is some fear that Pakistan will become too reliant on China, Khan explains: « When a country opens up to the world, I think these fears arise everywhere.
