Road through Rome? (China's BRI into the heart of Europe)

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 Road through Rome? (China's BRI into the heart of Europe)

Read more on - Polity | Economy | Schemes | S&T | Environment


    • Italy endorses the BRI : Italy now wants to endorse China's huge Belt and Road Initiative (BRI), a first by any G7 nation. That is a boost for China, the global might of which is not being challenged by US and EU in a well-coordinated manner.
    • Aim of BRI : From 2013, its goal is to link 65 nations along a modern Silk Road, while transforming China into a high-income economy and turning its currency renminbi into a global one.
    • Made in China 2025 : As part of that, the BRI has expanded to 80 nations, mostly LDCs and developing ones. China gives attractively packaged loans, without any political conditions, informally. Most of it is opaque, and prone to creating debt-traps.
    • Glitches : Wherever problems have appeared, nations have asked for a renegotiation rather than roll-back. The BRI and AIIB are moving on.  (Asian Infrastructure Investment Bank)
    • The 16+1 group : This group is working together on infrastructural projects. But now Italy is the first developed nation to endorse the BRI.
    • Why Italy, why now : Italy's regime at present is eurosceptic and anti-establishment. The strict fiscal norms of the EU are difficult to match for Italy as of now. Recently the budget was revised due to it. Italy now hopes to get more Chinese investments.
    • Concern in other nations : Italy is moving close to China right when France and Germany are working to block the merger and acquisition of EU companies with Chinese ones (in strategic sectors).
    • Trump is aware : The US under Trump has already used the America First policy to launch its trade war against China, and protect domestic businesses. US is wary of China's power, mostly earned post joining the WTO in 2001.
    • The right way : Western democracies should actually live up to their promise of promoting a rules-based global competition, rather than resorting to protectionism.
    • Summary : With Italy endorsing the Chinese BRI, a new chapter opens up in the relentless expansion of China's economic influence worldwide.
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                                                                                                                                                PT's IAS Academy: Road through Rome? (China's BRI into the heart of Europe)
                                                                                                                                                Road through Rome? (China's BRI into the heart of Europe)
                                                                                                                                                Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
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