Xi Jinping sets Belt and Road Initiative on a firmer path for global good
- In his keynote address to world leaders, China’s president addressed major concerns about the ambitious project and pledged greater transparency
Moves to allay concerns through measures including ensuring the Chinese currency remains stable, the adopting of internationally recognised standards of debt sustainability, pledging to uphold intellectual property protection and greater transparency, were understandably welcomed.
They are proof that the idea, although Beijing’s, is about growth, inclusiveness, sharing and multilateralism.
Hundreds of billions of dollars have been committed by Beijing to scores of projects that have boosted transportation links, increased trade and created almost 300,000 jobs.
But a scheme so ambitious and on such a scale requires review and revision. The United States, locked in a trade war with China, has been especially critical, claiming the initiative is about pushing geopolitical aims and making nations subservient through ensnaring them in debt.
Controversies have erupted over projects in Sri Lanka and the Maldives, but a renegotiated deal with Malaysia on a rail line shows Beijing is only too willing to address concerns. Xi did not acknowledge the accusations, but stressed the importance of China having an open and transparent approach.
That will involve a rules-based system, ensuring the belt and road scheme is not an exclusive club and making clear providing funding and investment and building infrastructure is open to all.
With that in mind, Xi said China would adopt policies including opening more sectors to foreign business and investment, enhancing intellectual property rights protection, increasing imports, and delivering on promises.
This is in line with China’s pledge to open wider to the world, but also allows others to be a stakeholder in its growth. Coincidentally, it was stated shortly after US President Donald Trump announced he would meet Xi “soon” at the White House.
Trump refuses to join the belt and road scheme and has been pressuring allies to follow suit, although Italy recently became the first major Western economy to sign on. But others should follow the Italian lead.
There is no better approach to growth and development or way to counter rising protectionism through promoting multilateralism, globalisation and openness.