US officials warn China’s BRI could lead to debt trap, undermine sovereignty

JAGDISHOR PANDAY

Washington, DC, November 

US government officials and experts have expressed apprehension about China’s flagship multi-trillion-dollar Belt and Road Initiative. 

They have warned it could lead to debt trap and undermine sovereignty in the long run, harming the participating countries’ interest. They also said the BRI, introduced by Chinese President Xi Jinping, lacked transparency and was aimed at fulfilling China’s own security and strategic interests rather than promoting economic development.

These views come at a time when Sri Lanka is struggling to repay Chinese debt to build a port in Hambantota at a cost of over US$1 billion due to inability to generate business. The asset and 15,000 acres of land around it have now been handed over to China for 99 years, giving the world’s second largest economy control over territory just a few hundred miles off the Indian coast.

US warns China: strict the BRI on economy and infrastructure, not on strategic

Jagdishor  Panday

Washington DC, November
The US officials and members of think-tanks said the Belt and Road Initiatives (BRI), which was introduced by the Chinese Premier Xi Jinping, is fine if it is only for economy and infrastructure development purpose. They said that they have a concern about countries sovereignty, transparency, and accountability in the world.
 

Speaking with journalists of South Asian during the 'Amplifying the Indo-Pacific Strategy', they said that the US is always happy to see the countries of the world getting better in-term-of economy and infrastructure field. The US officials and think-tanks members warned over China that in the name of economy and infrastructure development's face, China shouldn't come out with security and strategic plan behind that.


They said China shouldn't cross their economic line through BRI in the world. They said the US always support and favor of BRI (also known as One Belt and One Road) 's plan 'A' which is economic development. But the USA will not support plan 'B' of BRI which is security and strategic point of view.

We have focused on power, roads, and transmission lines in Nepal: USA

Jagdishor Panday

Washington DC, November

The USA official said they have focus in the field of power, road and transmission lines project in Nepal. Speaking with the journalist from South Asian during the ‘Amplifying the Indo-Pacific Strategy’ programme here, Alice G. Wells, Principal Acting Deputy Assistant Secretary of State of South and Central Asia for the USA, said in the field of road, power and transmission line sectors the USA has helped Nepal around 500 million dollars. 

“In the Million Challenge Cooperation projects we have Nepal in the field of power, roads and transmission lines,” she said. She said the USA has focused on humanitarian and disaster management crisis. Nepal and USA have several joint programmes including joint military drills on humanitarian and disaster management crisis.

She also said the USA and Nepal have historic relation and the USA always wants to work with Nepal and help Nepal.

Aware of the Chinese project in Nepal: USA

Jagdishor Panday

Washington DC, November  

 The USA officials asked Nepal to aware of Chinese project in the country. Jonathan E. Hillman, a Senior Fellow of Simon in Political Economy and Director of Reconnecting Asia Project said the Chinese projects are not viable in Nepal. 

Speaking at the programme of ‘Amplifying the Indo-Pacific Strategy’ here in Washington DC with South Asian journalist including from Nepal, Hillman said Nepal citizen are given job with Chinese investment but there are not viable.

Nepal is a part of China’s 26 trillion dollars ambitious project Belt and Road Initiatives (BRI). Till now China has invested in 138 countries around the world.

“There will be no long-term benefit from the Chinese project,” he said, adding, there is no transparency on those project too. He also doubted on those projects’ qualities which were constructed by Chinese.  

Nepal can benefit from 'Built Act'

Jagdishor Panday 

Washington DC, November 


Alice G. Wells, Principal Acting Deputy Assistant Secretary of State of South and Central Asia for the USA, said Nepal can take benefit from the ‘Built Act’ program, which is created by the USA on the basis of the new International Development Finance Corporation. The USA has come up with 60 billion dollars ‘Built Act’ recently.  

It 'Built Act' came as strategically to counter Belt and Road Initiatives (BRI) in the Indo-Pacific region. Nepal is also the part of BRI and the US also wanted to engage Nepal through IDFC.

The US has already given big concern on it. “Two weeks ago my President (Donald Trump) signed Build Act, and under it, we are creating new international development finance corporation. That would have $ 60 billion and investment capacity. In financial supports, there is European Investment bank, Australian, Japanese and we are negotiating with Indian,” Wells said, adding, to work in security as well as peace and prosperity, State Secretary Pompeo has already announced $300 million for additional funds in Indio-Pacific region.

U.S Defense official says: On a free and open Indo-Pacific

Jagdishor Panday

Washington DC, November 

The US official said that they have been committed to this region for well over 70 years since World War II and even before World War II and the US has a vested interest in maintaining security, stability, free and open Indo-Pacific region.

Speaking with South Asian Journalists during the 'Amplifying the Indo-Pacific Strategy program, the Defense official said as a Pacific nation with tremendous regional interests, the United States is committed to the protection and defense the territory of the United States, its people, and interests in the region.

"It's important that we understand that there's a lot of common ground out here for us, that the US, yes we have interests here but we have common interests, we have a common interest in a free and open Indo-Pacific, in access to free markets, in access to free and open navigation to freedom from coercion, freedom from any type of fear," the official said.