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Showing posts from March 11, 2018

Will China's Belt and Road Initiative Push Vulnerable Countries into a Debt Crisis?

https://www.cgdev.org/blog/will-chinas-belt-and-road-initiative-push-vulnerable-countries-debt-crisis 3/5/18 John Hurley ,  Scott Morris  and  Gailyn Portelance Views from the Center China ,  Asia ,  Development Finance ,  debt ,  Finance and Investment ,  Multilateral Development Banks Leave a comment Print As China’s Communist Party  paves the way for President Xi Jinping’s indefinite leadership , the international community should expect the Belt and Road Initiative (BRI)—President Xi’s signature global infrastructure plan spanning Asia, Europe, and Africa—to be further cemented as China’s primary strategy of global engagement for years to come. In a new CGD paper, we assess the likelihood of debt problems in the 68 countries we identify as potential BRI borrowers. The big takeaway: BRI is unlikely to cause a systemic debt problem, yet the initiative will likely run into instances of debt problems among select participating countries—requiring better standards and improved

Silk Road Headlines

Silk Road Headlines 7 March 2018 Source: Louis Vest/flickr  Among this week’s news items, the article by East Asia Forum  [Moving from defence to offence on trade strategy]  paints the big global picture of trade and alternative strategies and agreements proposed in the context of the American isolationism. America under Trump has retreated from the region’s trade architecture, pulled out of TPP, is in the process of possibly beginning a trade war, undermining WTO, and thus leaving the trade landscape open for new actors to take charge in strategies that could potentially be labelled as offensive. “No single country can alone lead a response to the vacuum that the US is daily creating in global governance”. Japan is taking lead in a TPP deal without the US. Australia is involved in the revival of TPP and also pushing for CPTPP. Another concept/agreement is RCEP (involving China), that is meant to address the post-American vacuum and is the deal with ‘the best chance’. However, acco