BRI “eroding national sovereignty” is false argument
By Jia
Xiudong
Recently,
some western politicians, think tanks and media outlets claimed that China’s Belt and Road Initiative (BRI)
jeopardizes national sovereignty of the participating countries.
They
argued that Belt and Road countries might lose control over projects under
China’s “debt trap”, and Beijing has obtained control over select
infrastructure projects through equity arrangements, long-term leases, or
multi-decade operating contracts.
Such
arguments go against facts, and are illogical.
The BRI
has been upholding the principle of wide consultation, joint contribution and
shared benefits since it was proposed. It fully respects the sovereignty of
participating countries.
The Initiative
adheres to the purposes and principles of the Charter of the United Nations,
and opposes exclusiveness, unilateral acts and forced decisions. It aims to
achieve win-win results based on mutual respect, equality, mutual benefits, as
well as dialogues, consultation and cooperation, allowing each participant to
have a sense of gain.
Meanwhile,
the Initiative highlights the alignment among the development strategies of the
countries along the route.
Every
country should enjoy the right to develop, and has its own development strategy
and planning. So far, no Belt and Road agreement has been forced or reached
unequally.
In
addition, China places high importance on the debt sustainability of all Belt
and Road countries. It never forces other countries to cooperate, nor sets
“traps”.
Financial
integration is bedrock for Belt and Road construction, and the debt
sustainability is closely linked with the BRI sustainability.
The
construction of the BRI needs huge capital investment, while most of the
participants are developing countries. The imperfect financial system and lack
of financing channels are posing challenges for the financing and investment of
BRI projects. In order to solve the problem, the BRI is committed to building
new platforms of cooperation and innovative mechanisms of investment and
financing, and is actively attracting various capitals.
The BRI
involves both Chinese and foreign organizations that together form a capital
guarantee system for the Belt and Road construction and have issued a series of
risk control measures regarding investment and financing, including the Guiding Principles on Financing the
Development of the Belt and Road, and the
Debt Sustainability Framework for Participating Countries of the Belt and Road
Initiative.
Though
participating countries of the BRI are shouldering relatively heavy debt
burden, such burden has no necessary relation with Belt and Road projects. The
debts of some countries, created years before they cooperated with China on the
BRI, were a result of the massive loans from other countries and international
financial organizations, and China is not the largest creditor.
The debt
coming from China is the efficient investment and admissible assets of the Belt
and Road projects. Increasing the debt suggests increasing valid assets –
assets from which the countries can receive long-term returns.
Besides,
BRI projects are carried out in a variety of forms. It’s farfetched to equate a
certain form of cooperation with “erosion of national sovereignty”.
Focusing
on the promotion of interconnectivity, BRI construction involves a great number
of infrastructure projects. These projects call for huge investment and involve
long construction periods, and in fact create low profits and cannot produce
immediate returns. In addition, they are always built in harsh environments
with huge difficulties and risks. However, realization of such projects is
urgently needed by the participating countries in order for them to achieve social
and economic progress.
When
many western enterprises are avoiding such projects, Chinese companies are
rising to these challenges.
Regarding
infrastructure projects such as highways, railways, ports and power stations,
Chinese enterprises adopt practical solutions and make full consideration of
investment, returning cycle, human resource and technology. National
sovereignty is never an issue as the specific cooperation models and duration
are decided through consultations.
According
to US public opinion, why is it considered an “erosion” of national sovereignty
to hold a long-term equity of 51% or more, while holding a short-term equity of
49% or less is not?
Is the
globally-accepted BOT (build-operate-transfer) model adopted by Chinese
enterprises also considered “erosion of national sovereignty”?
Based on
such logic, many US enterprises are also “eroding national sovereignty” before
they transfer projects, as they participate in BOT projects in China and other
countries.
China
has always encouraged cooperation in third-party markets based on Belt and Road
construction. Since the proposal of the initiative, China has signed
cooperative documents on third-party market cooperation with France, Italy,
Spain, Japan and Portugal, which promotes effective alignment for China’s
advantageous capacity, developed countries’ technology and the development
needs of developing countries.
A batch
of American enterprises including Caterpillar, Honeywell, and General Electric,
have already joined Belt and Road projects, and are enthusiastic about Belt and
Road construction. Are the above nations and enterprises accomplices that have
assisted China to erode the sovereignty of other countries?
By
fanning the “erosion of national sovereignty” and slandering the BRI, the US is
trying to sabotage the relationship between China and Belt and Road countries
with the so-called “great power competition” mentality and also attempting to
narrow the space China needs to conduct positive interaction with the world.
The BRI
has become a popular public product around the world. To protect the image and
long-term interests of the US, Washington should assist the development of Belt
and Road countries with more concessional loans, lower cost, higher efficiency
and an equal and respectful mindset, rather than undermining the foundation of
the BRI.
(The
author is a researcher with China Institute of International Studies.)
Source:People’s Daily Online
The Opening Ceremony of the 2019
South Asian and Southeast Asian Countries Commodity Exhibition and Investment
and Trade Fair. (Photo by Li Faxing from People’s Daily Online)
BRI “eroding national sovereignty” is false argument
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