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The Chinese grand strategy: an overview of the causes and consequences of the Belt and Road Initiative

2021; Linguagem: Inglês

10.20935/al4409

2771-9359

Federico Alistair D'Alessio,

International Development and Aid

The study focuses on historical initiatives of China, that is, One Belt One Road. This study is descriptive and tries to explain complete opportunities, and risks and Challenges of Belt and Road Initiatives in brief on the ground of past literature. Even though scholars view Belt & Road Initiatives as U.S. Marshall plan, correct implementation will create a win-win situation to both partners and non-partners nations along the Belt and Road region. Every country must know that significant investment always entails geopolitical issues, financial risk, debt risk, and funding risk, whether the investor is the United States of America, China, Japan, India, or the European Union. Host nations must think about their current economic and political status; size and need of projects, criteria of involvement, possible interest rate, and cost fluctuation and expected benefit of projects before accepting a loan from any nation for big projects. China should develop independent financial auditing system, increase the bankable loan, and follow the participatory approach in the decision-making process. China must increase the number of investing partners rather than moving alone if they want to gain their historical status of Pax Sinica. The effective mechanism should be developed to address issues related to the safe working environment, pollution prevention and reduction, ecological protection and biodiversity conservation, demolition and relocation, and protection of indigenous people and cultural heritage along the Belt and Road route. If host nations do not analyze financial deals and debt structure before choosing any megastructure, then they have to exchange their sovereignty with a key player of One Belt One Road. KEYWORDS: Pax Sinica, U.S. Marshall plan, one belt one road, geopolitical, politico-military. JEL CODES: A13, B15, B27, F10, F15.