Belt And Road Forum: China Hosts Developing Nations Amid Concerns Over Debt, Financing Approach

The two-day Belt and Road Forum (BRF) in Beijing has kicked off, with a notable number of developing countries sending their top officials to the event as China’s Xi Jinping looks to ease concerns about his flagship initiative.

Dubbed the “most important diplomatic event hosted by China this year,” the third Belt and Road Forum has attracted delegations from developing countries, including Kazakhstan, Congo, and Uzbekistan. More than 140 countries confirmed their attendance at the forum that will run from Tuesday through Wednesday, according to a press release on the Belt and Road Initiative’s (BRI) official website.

Xi met with Kazakhstan’s President Kassym-Jomart Tokayev on Tuesday, Chinese state media reported. Photos of the Kazakhstan leader’s arrival showed a red carpet welcome for Tokayev.

Tokayev reportedly told Xi during the meeting that Kazakhstan was looking to expand its agricultural exports to China. Xi, for his part, called Tokayev an “old friend,” and said the two nations should strengthen cooperation.

The Republic of the Congo’s President Denis Sassou Nguesso also arrived in Beijing on Monday for the BRF. Relations between the two nations “grew closer in 2013,” as per the Chinese Foreign Ministry.

Xi and Sassou Nguesso met in August, wherein the two leaders reaffirmed their friendship and strong ties. China and the Congo are celebrating 60 years of diplomatic relations this year.

Other top leaders from developing nations who are in Beijing for the BRF are:

President Ukhnaa Khurelsukh of Mongolia

President Vo Van Thuong of Vietnam

President Shavkat Mirziyoyev of Uzbekistan

Prime Minister Anwar-ul-Haq Kakar of Pakistan

Deputy Prime Minister Rashid Meredov of Turkmenistan

Prime Minister Srettha Thavisin of Thailand

Prime Minister Abiy Ahmed of Ethiopia

President Joko Widodo of Indonesia

President Aleksandr Vucic of Serbia

President Thongloun Sisoulith of Laos

Prime Minister James Marape of Papua New Guinea

Prime Minister Hun Manet of Cambodia

President Ranil Wickremesinghe of Sri Lanka

The arrival of top leaders from developing countries comes amid concerns about the future of the BRI, which was established 10 years ago.

Researchers have said that while the BRI has “played a vital role in addressing the global infrastructure gap” in developing countries through its work on modernizing highways, railways, and other critical infrastructure, the initiative “lacked a clear description” and it was “difficult to distinguish between BRI projects” and regular diplomatic relations.

There have also been concerns over the past years regarding the debts of developing countries in relation to the initiative. Critics have said Laos, which took huge loans from Beijing to finance its $6 billion railway, may not be able to pay its debt back and may not make much money from the project.

The Center for Global Development said in a 2018 report that eight BRI partners – the majority of them developing countries – were at high risk of “debt distress” due to their participation in the ambitious project. Beijing has repeatedly denied that the BRI is a “debt trap.”

Meanwhile, China’s invitation to Taliban-led Afghanistan to attend the BRF has received criticism as Beijing looks to normalize cooperation with the militant group.

“China is using its influence in Afghanistan to gain acceptability for the Taliban through economic advantages,” Shanthie D’Souza, founder and president of independent research forum Mantraya, told International Business Times.

Xi is expected to demonstrate a shift of tone regarding the BRI’s priorities during the last day of the forum, as his flagship project seems to be transitioning from large-scale projects to smaller, technologically-centric ones.

The State Council’s white paper on the BRI that was released last week noted that China is working to improve its financing approach. “To avoid causing debt risk and financial burden to the countries where BRI projects are located, China has prioritized economic and social benefits and provided loans for project construction based on local needs and conditions,” it said.