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The Belt and Road Initiative and its Implications for the
International System.
Joab Caselato a.
a
Latin American Institute of Economy Society and Politics, Federal University For Latin American Integration, Foz do
Iguaçu, Brazil, [email protected].

Abstract. The main objective of this article is to analyse and examine the Chinese Belt and Road
Initiative (BRI), which is a grand global regional integration project led and financed by China,
involving many countries in Asia, Europe, Africa and Latin America. BRI aims at its core to
promote trade, investment, infrastructure, connectivity and cultural exchange between the
countries that participate in it and is currently seen as one of the largest development initiatives
in history and a key factor in the contemporary International System. The paper in question
uses a broad literature review based on articles from Google Scholar and economic analysis
websites to analyse the main aspects concerning BRI, such as its historical context, its short and
long-term objectives, its role in the foreign policy of Beijing, the geopolitical and power
dimensions, the economic benefits and challenges of implementing this initiative on the global
geopolitical scenario and the implications of its existence and development for the world order.
The key argument for the article is that China pursues both multilateral cooperation and self-
interest through BRI, using strategic investments to gain advantages in areas such as transport,
energy and security. However, the article also considers the possibility that BRI could end up
partaking in some form of debt-trapped diplomacy, creating economic dependence and political
alignment of many countries with China, and challenging the Western order.

Keywords. International Relations, Belt and Road Initiative, China, Geopolitics, Foreign Policy.

1. Introduction platform is used, in addition to the direct research of

publications on economic analysis department
China is one of the main actors in the contemporary websites. The article presents the historical context
international system, with growing economic, of Chinese growth and the origins of the initiative;
political and cultural influence. Since its opening to the general objectives of BRI and its foreign policy,
the global market, the Asian country has considering the geopolitical and soft and hard
experienced accelerated development, which has power dimensions; the economic aspects linked to
made it a large global economy and one of the the operation of the project, the Chinese economic
largest trading partners for several nations. In this benefit from the process and the possible concerns
context, China launched the Belt and Road Initiative related to it; in addition to the implications of the
(BRI) in 2013, an ambitious regional cooperation BRI for the construction of a new world order,
and integration project involving a multitude of defining China as a protagonist in changing the
countries in Asia, Europe, Africa and Latin America. Western order.
BRI aims to promote trade, investment,
infrastructure, connectivity and cultural exchange This article intends to defend the hypothesis that
among participating countries, under Chinese China, while seeking to invest in developing
leadership and financing. In this way, it is countries with aid policies and initiatives aimed at
considered to be one of the largest development establishing a multilateral order, also seeks to
initiatives in history and is increasingly emerging as acquire its own advantages, using strategic
an extremely important part of the analysis of the investments in the countries to benefit on certain
International System [1]. issues, such as more efficient transport of goods,
energy stability, among others. However, along the
This article seeks to analyse the main relationships same line of reasoning, the article plans to consider
concerning the Belt and Road Initiative, as well as the possibility that - despite the discourse of
its challenges and opportunities for the promoting win-win cooperation - such an initiative
international scenario. To do this, an extensive ends up demonstrating itself at certain points as a
bibliographical review allowed by the search for possible action that promotes debt trap diplomacy,
articles on the topic through the Google Scholar connecting - through economic debts to China -
countries around the world with Beijing, supporting creating this interconnected web of infrastructure,
it in decisions and increasingly strengthening China aims to foster trade, facilitate access to
relations, establishing new relationships of natural resources, promote economic development
dependence. and improve the country's security, in an effort that
spans several decades [3].
1. China: The Rising Powerhouse The Belt and Road Initiative focuses, in the short
1.1 The impact of the Chinese Communist term, on improving interconnection and economic
cooperation between nations in Asia, Africa, the
Revolution Middle East, Europe and Latin America. This is
China’s industrial, cultural and social development achieved through the development of a wide range
in the last century is truly remarkable. Since the of infrastructures, covering both investments in
Communist Revolution of 1949, China was able to sectors already discussed here, as well as in
change from a largely rural, decentralised and telecommunications, power plants, irrigation
agrarian society into a global economic powerhouse. networks, waterways, among other initiatives,
This transformation was driven by a series of bold depending on the main particularities, potential and
reforms and policies that reshaped the nation's economic flagships of the countries included in this
economic and political landscape [2]. project [4].
In a context of broad commercial exchanges and The initiative discussed here was leveraged by the
consolidation of neoliberal capitalism, China was Chinese government as a project based on win-win
able to establish itself as a major global player in the cooperation and stands directly in opposition to the
economic sphere, basing its structure on a socialist “America First” agenda promoted by the USA,
market economy system. Furthermore, by using the featuring China as a voluntary protagonist in
rules of modern capitalism, along with political promoting international trade and in global
management and a well-structured foreign policy, investment. Furthermore, it aims to connect more
despite dealing with the imposition of external than 140 different countries, doing so through the
limitations on economic policies, China has shown division into three main blocks: the Land-Based Silk
itself capable of emerging globally by developing an Road Economic Belt, mainly delimiting connections
advanced economic structure with a consolidated between Asia and Europe; the 21st Century
industrial base [2]. Maritime Silk Road, established primarily in marine
territory and defining a concrete connection with
That being the case, the state of affairs the African continent and; the Air base Connection
aforementioned clearly conveys that one of the with the Americas [1].
main revolutionary points of Chinese policy is
undoubtedly economic growth through In the long-term context, BRI's central objectives
expansionism, with the country's development focus on promoting the sustainable economic
being based on the strengthening and consolidation development of participating countries, leveraged
of a fortified centralised National State, in a by the growth of the aforementioned infrastructures
situation in which transnational investment, and the boost in commercial activities. This is part
globalisation and decline in state power occupy a of a broader strategy aimed at boosting both China's
prominent position in the International System [2]. economic growth and the joint economic growth of
these partner countries, generating mutual
1.2 The Belt and Road Initiative economic benefits and promoting greater economic
interdependence between the nations involved [4].
One of the most important points in contemporary
Chinese foreign policy is the Belt and Road Initiative BRI, in addition to the main objectives defined by it,
(BRI) - also known as the New Silk Road or One Belt seeks to build tools and instruments that facilitate
One Road Initiative, - which is a broad investment its existence and the project of infrastructural
plan originating in China, proposed in 2013 and development, economic and social investment, such
lauched in 2017 by their current president, Xi as the Asian Infrastructure and Investment Bank,
Jinping. This initiative's main objective is to the Silk Road Fund, the South-South Dialogue, the
establish a strategic connection between China and New Development Bank and the Confucius
different regions of Asia, Europe, America and Africa Institutes, consolidating the initial proposal and
through an extensive infrastructure, trade and allowing the objectives of such an initiative to be
investment network [1] [3]. achieved permanently [1].

BRI represents a unique approach to globalisation Pestana (2020) infers that the "String of Pearls"
that reflects the main characteristics and interests strategy is an adjacent branch of the belt and road
of China, considering that this initiative is developed initiative and takes place through the establishment
from a long-term stance. Its central focus is the of military bases and commercial infrastructures
development of massive infrastructure, such as throughout the Indian Ocean, with the purpose of
ports, roads and railways, that promote economic expanding its geopolitical influence in key areas
integration and connect the nations involved. By such as the Indian Ocean and Africa, creating its ties
south of Port Sudan. This implies the an environment favourable to the promotion of
implementation of the projects already mentioned more solid economic relations between China and
in nations that have joined the Belt and Road the nations involved. In this context, Chinese
Initiative, facilitating the expansion of Chinese financial institutions, including the political and
economic and political power in these regions. commercial banks created, together with
Furthermore, the author states that the strategy multilateral credit organisations, facilitate the
aims to secure Chinese maritime trade routes, also financing of projects within the initiative. It is
guaranteeing access to strategic natural resources, important to note that, considering that BRI is still
such as oil and gas. in the development phase, it will be necessary to
wait a longer period for a comprehensive
1.3 BRI’s Role in the Chinese Foreign assessment of its long-term economic results [3].
Policy Perspectives regarding China's financing practices
The aforestated strategy represents an approach in BRI member countries suggest a growing
that focuses on China's geopolitical influence and willingness to direct resources to smaller-scale and
has connections to the use of Hard Power, referring more sustainable projects, in line with discussions
to the employment of military or economic that took place during the second Belt and Road
resources to impose the will of a state on other Forum, held in 2019 This trend indicates a possible
international actors. This strategy implies a more adaptation to concerns related to the financial and
assertive and pragmatic approach, often involving environmental viability of projects, which could
the investment of substantial economic resources contribute to more equitable and lasting economic
and, potentially, the use of force to achieve China's growth in the regions involved in the initiative [3].
political objectives in strategic areas [4].
2.1 China’s Benefits from BRI
On the other hand, there is a cultural perspective
underlying the Belt and Road Initiative that plays China has been experiencing economic gains from
the role of China's Soft Power tool, marked by the the Belt and Road Initiative by providing financing
idea of strategic persuasion to achieve goals using to support ambitious ventures in participating
culture, history and State values as instruments for countries. This has resulted in contracts being
such. From this perspective, the Belt and Road awarded to Chinese companies to build
Initiative, along with cultural partnerships and the infrastructure and provide equipment.
installation of Confucius institutes in partner states, Furthermore, the initiative has enabled the
becomes a means of expanding Chinese Soft Power, expansion of China's geopolitical and commercial
that is, cultivating diplomacy that is based on influence in strategic areas, in accordance with
cultural attraction and in building a favourable specific objectives established in particular
image of the country [4]. circumstances [4].

Additionally to this, Gao (2018) also brings to the Through BRI, China can effectively pursue its
discussion the fact that BRI represents an important interests and achieve its aspirations, with a
instrument for Chinese foreign policy in its substantial focus on economic benefits. For China,
leadership of what is called “Globalisation 5.0”, investment plays a fundamental role, as it makes it
based on global collaboration and temporally possible to obtain raw materials and expand its
initiated from the creation of the initiative. For her, companies. Given that industrial investment and the
this action is carried out as a salute and nostalgic supply of such materials constitute vital elements of
tribute to the Ancient Silk Road, which begins in the its economy, the acquisition of mineral resources
3rd century BC and goes until the 15th century AD, emerges as a pressing need. Consequently, the
as well as seeking to replicate again the “Chinese investment in countries with abundant mineral
economic miracle”, which occurred from the reserves is crucial, as it allows China, after the initial
Revolution of 1949, in the rest of the Global South investment, to guarantee access to the minerals
through the construction of infrastructure in necessary to sustain its economic growth [5].
countries in these regions, losing the imperialist Another fundamental point of analysis is the ability
character observed in the actions of the Global and need for Chinese companies to make
North towards the South and being guided by investments. Therefore, China establishes as one of
multilateralism. its main objectives the creation of jobs for its
citizens, something that is achieved through
economic growth, thus requiring a more substantial
presence in different regions and allowing its local
2. The Economical Aspects of BRI companies to invest in other territories. In general
Considering its 10 years of existence, BRI is still terms, China is recognized for its imposing works
currently laying the foundations to expand Foreign and projects, as well as its undeniably strategic
Direct Investment (FDI) flows destined for countries areas of influence [5].
participating in the initiative, using the creation of
Moreover, the Belt and Road Initiative helps China the geopolitical and economic development in
face several internal challenges, including excess strategic regions, acquiring active strategic
industrial capacity, regional disparities and resources in countries undergoing socioeconomic
economic transition. By directing investments in development [4] [8].
infrastructure abroad, China is able to take
advantage of its underutilised resources, foster
progress in less developed regions and stimulate
processes of innovation and industrial 4. Final Discussions
restructuring. This results in benefits for both China
and the regions involved in the initiative [6]. Despite all the hypotheses, criticisms and concerns
discussed here, it is still too early for us to properly
comprehend whether the global policy proposed by
the Belt and Road Initiative is actively placing the
3. BRI and the Debt-trap Diplomacy countries involved in conditions that fall under debt
trap diplomacy, given the lack of concrete evidence
Taking into account that the action of BRI takes that this is happening at the moment and
place mainly through the granting of loans of considering that the project is working actively for
considerable value to member countries, the just over a decade. However, it can be said that
possibility opens up for the hypothesis that these there are indeed tangible concerns linked to the
amounts are too high for them to be able to pay sustainability of the debts that are developing. This
them under acceptable conditions. In this way, the concern is based on the obvious distinction between
excessive debt that such a scenario presents could external and internal debts, since the first must
be something very important to be considered in necessarily be paid off through exports, as
the equation [5]. Pestana (2020) gives this debt previously presented, and there are obvious limits
scenario the name “Debt Trap Diplomacy”, a concept to the total monetary amount that the subsidised
already discussed by many researchers in this field country can afford [6].
and which implies diplomatic actions based on debt
exports from one country to another, through loans, Conclusively, even with all the possible concerns
which make the debtor country find itself in a involved in the existence of BRI, it can be said that
situation of serious dependence on the creditor, the ambitious Belt and Road Initiative seeks to build
having no other choice but to renegotiate these a complex economic and logistical system that links
debts in a way that is extremely beneficial to the China with neighbouring regions and beyond, with
creditor, through the reduction of export prices, in the aim of boost sustainable economic development
strong support in diplomatic decisions on an and promote China's global influence in an
international stage and causing great financial extremely impressive way. This undertaking,
instability in the affected nation. despite being ambitious, represents one of the
largest infrastructure investment efforts in modern
For Pestana (2020), there are great risks of history, with an exacerbated potential to
countries involved in the initiative ending up being significantly impact the economies and
trapped by this form of diplomacy, due to the fact international relations of the nations involved.
that they are underdeveloped countries, often small Furthermore, the increase in direct foreign
and with low income, lacking effective methods of investment, in amounts never seen before, in
circumventing or reversing a hypothetical Chinese countries that need it so deeply shows a real
dominance in this scenario [7]. All these issues possibility and hope that the barriers imposed by
considered can lead to an intense impact on the neoliberal capitalism, which encourage inequality
ability of countries to adapt to sustainable and escape so much from a real scenario of
development perspectives [8]. international cooperation, will finally be conquered
and that multilateralism will become the real norm
Certain Western-based critics, primarily defenders of the International System in the future.
of the current global situation and the economic
dominance played by the United States, claim that
BRI may in fact become a tool of debt trap
diplomacy provisions, considering that currently 5. References
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