China’s Belt and Road Raises Debt and Pollution Among Poorer Countries
Chinese leader Xi Jinping gives a speech at a press conference after the Belt and Road Forum at the China National Convention Center in Beijing, China, on April 27, 2019. Wang Zhao/Getty Images
China’s Belt and Road Initiative (BRI) was meant to increase the GDP of participating countries. In many countries, however, debt to China has increased, pollution has increased, and the trade deficit with China has increased; while GDP growth, associated with the BRI, has been elusive.
A Silk Road to Debt
In 2013, Chinese leader Xi Jinping stated that he was initiating the BRI for mutual prosperity and to help developing countries improve their economic condition. However, most of the money these countries received from China was in the form of debt, rather than donations. The ratio on the BRI has been one grant for every 31 loans.
Antonio Graceffo
Author
Antonio Graceffo, Ph.D., is a China economy analyst who has spent more than 20 years in Asia. Graceffo is a graduate of the Shanghai University of Sport, holds an MBA from Shanghai Jiaotong University, and studied national security at American Military University.
