Skip to main content

Chinese Projects Lead to Recipient Bankruptcy

President Xi Jinping has embarked on his ambitious “one belt one road” initiative primarily to utilise China’s surplus construction capacity.

Published: 08th July 2018 05:00 AM  |

Chinese President Xi Jinping (File | AP)

By G Parthasarathy

China’s unprecedented, and some would say miraculously rapid, economic growth has been driven not only by rapid industrial progress, but by the manner in which its construction industry has grown over the past three decades. Roads, bridges, railway lines, power plants and residential premises have sprung up virtually overnight. But, this frenetic construction activity is now slowing down, as new demand is relatively limited. President Xi Jinping has embarked on his ambitious “one belt one road” initiative primarily to utilise China’s surplus construction capacity. This has involved building road communications across the Eurasian Landmass, from the Pacific to the Atlantic Ocean and augmenting maritime shipping, ports and power plants, across the Indian Ocean.

China’s “Belt and Road” ambitions are fulfilling its objective of utilising its surplus construction and power capabilities for projects abroad. But, 🔴Beijing’s hard commercial terms for infrastructure projects are forcing cash-strapped developing countries, into a debt trap. After having used force and violated the UN Convention of the Law of the Seas, to seize control of dozens of islands across the South China sea, China is now using its surplus economic capacities, to increasingly take control of countries across the Indian Ocean. This effort extends from Myanmar to our east, across Hambantota in Sri Lanka and Gwadar in Pakistan, to the shores of Maldives and Djibouti. 

The most wide-ranging effort in China’s ambitions to economically take over countries, using both political and economic leverages, is now underway in Myanmar. Using Myanmar’s current isolation, because of the Rohingya crisis, China is virtually insisting that Myanmar permit it to build a series of projects, enabling it to get access to the Bay of Bengal port of Kyaukpyu. China is simultaneously planning to use Myanmar territory to construct a number of projects. 

China also intends to build a hydroelectric project in this region, whose electricity will be utilised predominantly in its Yunnan Province. This project is facing huge resistance from the local population. China has also proposed an Industrial Park and other projects for exploitation of mineral resources, involving investments of over $10 billion. Moreover, Chinese involvement in thousands of acres of banana plantations in Myanmar’s Kachin State is regarded by local workers as blatantly exploitative. 

The mercantile dimensions of Chinese projects first emerged in Sri Lanka, where China has carefully manoeuvred to obtain a majority stake in the strategically located Hambantota Port. This Chinese-built port was found to have virtually no potential for normal mercantile trade. With Sri Lanka unable to repay China’s monetary contribution for building the port, China has become the majority shareholder. Hambantota could well become a base for China’s navy. The Pakistan Government and army describe the China-Pakistan Economic Corridor  (CPEC), as the cure for the country’s all economic woes. 

But, sober economists, even in Pakistan, hold that their country, already stressed to repay its present debts, is likely to end up mortgaged to China. The same pattern of acquisition by stealth by China is seen in Djibouti, where the former has a military base. Investments in infrastructure, including a rail line from Djibouti to Ethiopia, have set the stage for Chinese takeovers, similar to what has been happening, elsewhere across the Indian Ocean. India has done well by keeping its distance from any involvement in China’s “Belt and Road” project and objecting to CPEC.


Popular posts from this blog

The Rise of China-Europe Railways

The Rise of China-Europe RailwaysMarch 6, 2018The Dawn of a New Commercial Era?For over two millennia, technology and politics have shaped trade across the Eurasian supercontinent. The compass and domesticated camels helped the “silk routes” emerge between 200 and 400 CE, and peaceful interactions between the Han and Hellenic empires allowed overland trade to flourish. A major shift occurred in the late fifteenth century, when the invention of large ocean-going vessels and new navigation methods made maritime trade more competitive. Mercantilism and competition among Europe’s colonial powers helped pull commerce to the coastlines. Since then, commerce between Asia and Europe has traveled primarily by sea.1Against this historical backdrop, new railway services between China and Europe have emerged rapidly. Just 10 years ago, regular direct freight services from China to Europe did not exist.2 Today, they connect roughly 35 Chinese…

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed.
Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area”
For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number”
Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell you …

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میںPlease help the deserving persons...Salary:Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows;Welder: Rs. 1,700 dailyHeavy Duty Driver: Rs. 1,700 dailyMason: Rs. 1,500 dailyHelper: Rs. 850 dailyElectrician: Rs. 1,700 dailySurveyor: Rs. 2,500 dailySecurity Guard: Rs. 1,600 dailyBulldozer operator: Rs. 2,200 dailyConcrete mixer machine operator: Rs. 2,000 dailyRoller operator: Rs. 2,000 dailySteel fixer: Rs. 2,200 dailyIron Shuttering fixer: Rs. 1,800 dailyAccount clerk: Rs. 2,200 dailyCarpenter: Rs. 1,700 dailyLight duty driver: Rs. 1,700 dailyLabour: Rs. 900 dailyPara Engine mechanic: Rs. 1,700 dailyPipe fitter: Rs. 1,700 dailyStorekeeper: Rs. 1,700 dailyOffice boy: Rs. 1,200 dailyExcavator operator: Rs. 2,200 dailyShovel operator: Rs. 2,200 dailyComputer operator: Rs. 2,200 dailySecurity Supervisor: Rs. 2,200 dailyCook for Chinese food: Rs. 2,000 dailyCook…