Business Maverick: Analysis: Belt & Road’ Will Help World; China, Not So Much

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 49 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 84%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Business Maverick: Analysis: Belt & Road' Will Help World; China, Not So Much By Bloomberg

The global economic development initiative that China calls “One Belt, One Road” is considered one of Beijing’s major instruments in its geopolitical conflict with the U.S. But it’s unlikely to do much to boost Chinese power as it helps most of the world.China is investing in fixed assets and infrastructure from southeast Asia to the Balkans and East Africa. That poses a danger to China that host countries will eventually nationalize the assets without giving China comparable value in return.

To put that in context, let’s say you heard of a loan shark who threatened to break the fingers of borrowers who did not repay. You would sooner infer that was a risky, so-so investment rather than a sure winner. Another problem with Belt and Road, at least from a Chinese point of view, is that China is dealing with many countries that are much smaller in terms of their GDP. There’s a tendency for small countries to renege on deals in hopes that big creditors won’t bother to make an example of them. You might think that smaller countries are easier for China to push around, and there is some truth to that.

On top of all these economic problems, China has proven remarkably poor at supplementing Belt and Road with soft power persuasive techniques using diplomatic and cultural influence. This is no accident, nor does it reflect some kind of stubborn unwillingness of the Chinese to learn to wield soft power tools. Rather, the problem is structural.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 3. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

BUSINESS MAVERICK ANALYSIS: Trading on US-China deal to deliver the goodsGlobal free trade is one of those amazing benefits to global wealth. The IMF has measured a 60% reduction in prices in emerging economies since 1990 due to freer trade. But it’s disparities and contortions are also heavily criticised. Consequently, the US-China trade talks are among the most controversial issues of the day. The question is: how will completing the deal — or not completing it — affect SA?
La source: dailymaverick - 🏆 3. / 84 Lire la suite »

Business Maverick: Analysis: What Data Say About China, Global Economy: Mohamed A. El-ErianThe slowing of the Chinese economy, along with growing evidence of European growth under pressure, cast a big cloud of uncertainty over the global economy coming into 2019, write Bloomberg economist Mohamed A. El-Erian
La source: dailymaverick - 🏆 3. / 84 Lire la suite »