In 2023, was it the beginning of the end for Xi Jinping’s Belt and Road Initiative? The world will know soon.
Henry Kissinger’s Visit and the Tenth Anniversary Summit of the Belt and Road Initiative
In July, China’s leader Xi Jinping hosted Henry Kissinger, the controversial American politician and architect of U.S.-China relations, in Beijing. In October, during a summit in Beijing to celebrate the tenth anniversary of the Belt and Road Initiative, this transcontinental trade project of China faced accusations of exploitative practices.
Chip Wars and China’s Challenges in the Chip Industry
Before Kissinger’s visit to Beijing, the United States and the Netherlands imposed additional restrictions on chip-making equipment sales to China. These measures were part of a broader strategy to prevent China from leveraging foreign technology to enhance its military capabilities. Then in July, just two days after Kissinger’s visit to Beijing, the Biden administration dealt another blow to China’s chip ambitions, reaching a consensus on the need to impose restrictions on chip exports.
Doubts Surrounding the Belt and Road Initiative
China’s ambitions in the chip industry are closely linked to its desire to weave the world into infrastructure that includes not only roads and bridges but also networking equipment. The initiative, originally designed to connect East Asia and Europe through physical infrastructure, has expanded to include Africa, Oceania, and Latin America. However, skepticism has replaced euphoria on all continents as the minimum benefits promised by Beijing initially have not materialized.
Italy and Its Withdrawal from the Belt and Road Initiative
In December, Italy, led by Prime Minister Giorgia Meloni, informed Beijing that it would cease participation in the Belt and Road Initiative ahead of the end-of-year deadline. Italy was the only major Western country to join the Belt and Road Initiative in 2019, which faced significant criticism from the West at the time.
The United States views the Belt and Road Initiative as an example of “debt trap diplomacy” practiced by Beijing, involving massive projects that countries cannot sustainably finance, thereby giving Beijing leverage for its objectives. India has criticized the project as it passes through parts of Jammu and Kashmir under the illegal occupation of Pakistan and China.
Additionally, only a fraction of the investments that Xi promised in Italy, amounting to up to 20 billion euros in 2019, have materialized, according to an official statement from the Italian government. Italy’s exports to China reached 16.4 billion euros last year, compared to 13 billion euros in 2019. Meanwhile, China’s exports to Italy rose to 57.5 billion euros from 31.7 billion euros during the same period.
Will 2023 Be the Beginning of the End for the Massive Project?
We will soon find out whether 2023 will mark the beginning of the end for this massive project. Italy was wise to pull out of the Belt and Road Initiative this year, but several countries are already indebted to China, possibly reaching a point of no return.
We will soon know if 2023 will be the beginning of the end for this massive project.
Article by: Mukul Sharma
Mukul Sharma is a multimedia journalist based in New Delhi covering geopolitical developments in the South Asia region. His exclusive reports for WION on the plight of Afghan women under Taliban rule have been widely read. With a keen interest in the contested peace affairs in Afghanistan and the Pakistani establishment, Mukul can be found biking or running several miles in the early mornings in New Delhi, or reading some reflections from reporters on the places they have covered. Follow him on X @mukuljrsharma
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