Saved Laws For Credtrans
Saved Laws For Credtrans
Saved Laws For Credtrans
PACQUIAO
CHINA’S BELT AND ROAD INITIATIVE (BRI)
BRIEFER
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SOME OF THE BRI PROJECTS:
1. With RUSSIA - China reached a consensus with Russian President Vladimir Putin in
February, 2014 on the construction of Russia railways across Europe and Asia.
2. With PAKISTAN - $46-billion worth of energy and infrastructure projects in the China-
Pakistan Economic Corridor, linking Gwadar in Pakistan to Kasshgar in China.
3. With KAZAKHSTAN – a new transit railway to link the East and West, facilitating the flow
of goods along the ancient silk road trade route.
4. With MALDIVES – for maritime silk route, China secured the support of Maldives which
straddles major international shipping lanes.
5. With KENYA – its first fast train service from the capital of Nairobi to its Mombasa port
was just opened.
POTENTIALS OF BRI:
New and improved transport infrastructure and policy reforms
Substantial reduction of trade costs
Improved connectivity
o For example, shipment from China to Central Europe usually takes 30 days, as
most goods travel by sea. Shipment times by train are about half as long, but given
current infrastructure, much costlier.
o But while rail transport will remain costlier than maritime for these routes, the
time and cost reduction will have significant consequences for certain goods
impacting the mode choice and total flows of international trade.
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Laos in 2016. BRI is even deemed as a form of economic imperialism that gives China too
much leverage over other countries, often those that are smaller and poorer.
3. As mentioned, in relation to BRI, China plans to set-up international courts which may be
a vehicle for China to write new rules, establish institutions that reflect Chinese interests,
and reshape ‘soft’ infrastructure.
4. While there was a lack of “individual diplomatic clout” in Cambodia, Laos and the
Philippines, Chinese debt could give China a “proxy veto” in ASEAN, academics said.
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20 percent coming from foreign sources; and (b) tax policy and tax administration
reforms. All these are seen as measures that will improve Philippine competitiveness in
ASEAN.29
RISKS
However, the success of implementing a BRI project in the Philippines will depend on how
the Philippine government will balance opportunities with the risks attached to
participation.
Financial risks may also come about. It is important to understand that in these projects
and transactions, different currencies and national financial capacities are at
play.33 Differences in legal frameworks, possible incompatibility of technical
specifications, language barriers, and other forms of operational risks also need to be
looked into.
“China needs ASEAN so they can start with their Maritime Silk Road, which passes through the
South China Sea. They need our support for their Asian Infrastructure Investment Bank. Why will
these countries support China if China is grabbing their maritime zones?” SC Justice Carpio
remarked.
Sources:
1. https://blogs.worldbank.org/trade/three-opportunities-and-three-risks-belt-and-road-
initiative
2. https://www.economist.com/the-economist-explains/2017/05/14/what-is-chinas-belt-
and-road-initiative
3. https://www.rappler.com/newsbreak/iq/149535-china-belt-road-initiative
4. http://www.chinadaily.com.cn/a/201808/20/WS5b7a2509a310add14f386a9f.html
5. http://www.fsi.gov.ph/the-belt-and-road-initiative-and-philippine-participation-in-the-
maritime-silk-road/
6. http://www.fsi.gov.ph/chinas-belt-and-road-initiative-implications-for-the-philippines/
7. http://www.fsi.gov.ph/chinas-belt-and-road-initiative-implications-for-the-philippines/
8. https://www.theguardian.com/cities/series/cities-of-the-new-silk-road
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9. https://www.theguardian.com/world/2018/may/15/warning-sounded-over-
chinas-debtbook-diplomacy
10. https://www.worldbank.org/en/topic/regional-integration/brief/belt-and-road-
initiative
11. https://www.forbes.com/sites/greatspeculations/2018/09/04/chinas-
belt-and-road-initiative-opens-up-unprecedented-
opportunities/#70b7ce043e9a