After the Belt and Road Initiative (BRI) summit, China’s President Xi Jinping was able to close deals amounting to more than $64 billion, assuring everyone that they want to promote development for everyone that is part of the BRI.
According to the president, every project involved in the BRI will yield great results for everyone, and market principles will still be in effect for them. He is confident that other groups will soon join the initiative. The resulting cooperation among the parties will then result in better project outputs.
One of the pressing concerns about the signed deals is the fear that the BRI might leave partners with crippling debts. Chinese government executives, including Xi Jinping, have been working to dissuade those worries. They want to assure everyone who is part of the BRI that the primary goal of the initiative is to bring about mutual benefits. A statement issued during the summit confirmed that all leaders present were in consensus about how much the projects will be financed in a way that growth will still be possible without breaching debt thresholds.
To further prove that China is after global development, they also issued a statement during the summit about signing memorandums of understanding with various countries from Europe and South America. This aims to show that BRI is something that is globally accepted and will benefit everyone involved.
However, despite the good intentions of China with the BRI, some countries have called out the exorbitant prices of the projects. This could lead to debt amounts that may be too heavy for countries with small economies. To counter this, China is planning to assist states with debt issues via a sustainability framework that they are planning to roll out.
Despite the progress of most BRI projects, some countries, like Malaysia and Maldives, are still struggling with internal governance issues.
While President Xi did not fully expound on the specific deals signed, it was confirmed by the country’s state asset regulator that there are around seventeen government-owned firms that were involved in signing contracts during the summit.