Chinese Initiative Now Aims at “Small and Beautiful”

The Belt and Road Initiative is starting to shift to small, smarter, greener projects that don't cause hardship to partner countries.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Prakarsa China Kini Bidik ”Yang Kecil dan Indah”

KOMPAS/LUKI AULIA

On Thursday (19/10/2023), international journalists who were invited to China to cover the Belt and Road Initiative Forum on October 17-18, 2023, will visit Shanxi Province by taking the high-speed train from Beijing to Taiyuan in Shanxi.

The 10th anniversary celebration of the China Belt and Road Initiative (BRI) ended with a commitment of an additional $107 billion in funding for projects under the cooperation framework over the next five years. The latest funding round includes a loan of 700 billion yuan from two Chinese banks, namely Exim Bank and China Development Bank, as well as an injection of 80 billion yuan into the Silk Road Fund. Please note that the article contains forbidden words and should not be translated as they have specific meanings in Bahasa Indonesia.

Also read: China Directs More Realistic Belt and Road Initiative Projects

The figure of 780 billion yuan is the same as promised at the first China Belt and Road Initiative Forum in 2017. At that time, Chinese President Xi Jinping pledged to allocate 100 billion yuan to the Silk Road Fund, offer 380 billion yuan in loans, and rely on financial institutions to raise 300 billion yuan.

The latest commitment from China this year shows its desire to maintain BRI as the core of its geopolitical vision and to link China's development with developing countries.

LAILY RACHEV - BIRO PERS SEKRETARIAT PRESIDEN

President Joko Widodo attended the High Level Forum with the theme "Connectivity in an Open Global Academy" held at the China National Convention Center in Beijing on October 18, 2023. In his speech, the President conveyed that there are four important things in building connectivity in a country.

However, this time, China no longer boasts about its massive and expensive projects. In his speech at the opening of the Belt and Road Initiative (BRI) Forum on October 18, Xi emphasized that the BRI will now focus on "small but beautiful" projects and environmentally friendly development. Xi dismissed concerns over the sustainability of the BRI due to China's less than healthy economic situation.

Also read: A Decade of “Belt and Road” in China-Indonesia Cooperation

China's gross domestic product, according to Xi, has exceeded expectations in the third quarter. This proves that China is on the right track to meet its annual growth target of 5%. He emphasizes the importance of focusing on strategic resolutions.

"As the proverb goes, whoever gives roses to others, the fragrance will remain on their hands. Viewing the development of other countries as a threat or considering interdependence in the economy as a risk will not improve the lives of individuals nor accelerate progress," said Xi.

LAILY RACHEV - BIRO PERS SEKRETARIAT PRESIDEN

President Joko Widodo took a photo together at the opening of the Third Belt and Road Forum for International Cooperation (BRF) on Wednesday (18/10/2023), at the Great Hall of The People in Beijing, China.

Professor of Finance at Renmin University in Beijing, Zhao Xijun, on a separate occasion, assessed that Xi's speech demonstrates that the BRI remains the main driver of China's globalization amidst the anti-globalization wave in the West.

Also read: China Promises Belt and Road Initiative to Be “More Open”

The United States and the Group of Seven countries have attempted to "counter" the BRI project by launching a new partnership framework. The cooperation called Partnership for Global Infrastructure and Investment is worth $600 billion for infrastructure development in developing countries, agreed upon during the G7 Summit in 2022. G7 countries will provide a total of $600 billion, including private funds, based on this framework in 2027.

China is stronger

News Agency of Nigeria journalist, Fortune Abang, assesses that China holds significant power, including through large loans and companies capable of engaging in large-scale projects. "Unlike the US, China doesn't care about human rights or democratic situations in the countries it collaborates with, so China tends to be more welcomed by authoritarian leaders in Africa," he said.

Chinese Foreign Minister Wang Yi stated in a press conference with 200 local and foreign journalists at the BRF Media Center on Wednesday (18/10/2023), that China is willing to collaborate with other development projects, including the framework for cooperation proposed by the US. However, according to Wang, economic issues should not be politicized.

Also read: China Proposes "Competitive" Modernization to the West

President Joko Widodo has emphasized a similar sentiment, reminding that the BRI project must be based on the principles of equal and mutually beneficial partnership. Aside from thorough planning, the project must also be equipped with transparent financing systems, the implementation of local labor, and the utilization of domestic products. "The sustainability of the Belt and Road Initiative project must be ensured for the long term and be able to strengthen the economic foundation of partner countries, instead of making their fiscal situation more difficult," said Jokowi.

Evaluation

China observer at the Department of International Relations, Faculty of Social and Political Sciences, Gadjah Mada University, Nur Rachmat Yuliantoro, assessed that large-scale projects require long-term planning, large capital, and sometimes cannot be immediately realized due to various reasons. BRI has the potential to bring accusations of "debt trap" which corner China.

Therefore, China must evaluate its financing amidst the uncertain economic situation. "The scale of the Belt and Road Initiative projects has become smaller due to the alleged debt trap and greener projects align with the current trend of development that responds to the need for environmental preservation," said Rachmat.

Also read: New Funds of IDR 1,500 Trillion for China's Belt and Road

Indonesia can offer several national strategic projects that could receive financing assistance from China. From this perspective, said Rachmat, the collaborated projects are in line with development expectations and needs, especially in the infrastructure sector. Therefore, meticulous planning, inclusive project implementation, transparent and accountable financing, and attention to environmental sustainability are needed.

With several frameworks for development cooperation in place, developing countries, particularly in Africa and Asia, will have many opportunities to take advantage of them. In this context, the cooperations created by the US, the European Union, and the G7 will not hinder BRI. These frameworks will "compete" for markets, economic opportunities, and, to some extent, influence in their target countries.

KOMPAS/LUKI AULIA

Chinese President Xi Jinping inaugurated the 3rd Belt and Road Forum on Wednesday (18/10/2023) at the Great Hall of People in Beijing, China.

"As long as these cooperation frameworks are not wrapped with political conditions, it seems that developing countries will accept them," said Rachmat.

Eight action plans

There are eight points in China's action plan which include a focus on financing "small and beautiful" projects. Xi promised to support an open global economy, enhance trade of goods and services, promote digital economy, and remove all restrictions on foreign investment access in the manufacturing sector.

There is a commitment to promote environmentally friendly development, expert networks, and solar panel industry dialogues. Xi also outlined plans for international scientific cooperation and initiatives to promote artificial intelligence research and improve global artificial intelligence governance.

China will also promote cultural exchange between societies, enhance the governance of the BRI, and international cooperation mechanisms. There is also a series of promises to improve transportation and logistics networks throughout Eurasia. Xi's commitment includes accelerating the development of the China-Europe railway line, integrating ports, shipping, and trade services in the Maritime Silk Road, and accelerating the development of the New International Land-Sea Trade Corridor and the Air Silk Road.

Also read: Chinese Policy Direction and Opportunities for Indonesia

Emeritus Professor at the Hong Kong University of Science and Technology, Barry Sautman, said that China's progress actually depends on the development of the world economy, particularly developing countries. This means that China will seek to drive development in countries with diverse political systems and international positions. The significance of Xi's funding announcement is that China is fulfilling its promise to provide development aid to developing countries.

AP/ACHMAD IBRAHIM

People walk near a high-speed train during a trial run at Halim Station in Jakarta, Indonesia, on September 18, 2023. Indonesia has launched the first high-speed train in Southeast Asia, a major project under the China Belt and Road Initiative that will cut travel time between the capital and other major cities from three hours to around 40 minutes.

China is confident that the BRI will continue to operate despite new challenges from the US and EU. With more than 200 cooperation agreements spread across 150 countries and 30 international organizations, the cumulative value of imports and exports between China and partner countries has reached 19.1 trillion US dollars, with an average annual growth rate of 6.4 percent from 2013-2022.

At this year's forum, 458 collaboration results were achieved. The large number of collaboration results achieved, according to Wang, demonstrates the appeal of BRI and its global influence. 25 presidents, vice presidents, and prime ministers were present along with at least 10,000 delegates from 151 countries and 41 international organizations attending. Not to mention the 4,000 local and foreign journalists who were invited to cover the BRF.

"Who can build more roads, railways, and bridges for developing countries? Who can build more schools, hospitals, and stadiums for low-income communities in developing countries? China is confident that it can do it," declared Wang.