News
The Chinese initiative – view of the risks of neighbouring countries
Grace Xavier, an employee of the University of Malaya (the largest university in Malaysia), has published an article where she considers the benefits and risks of China’s initiative. This a view expressed by the countries directly affected by China’s initiative. And the view is not always positive. While noting the benefits of the project for participating countries, the author also highlights the risks – above all, environmental and political.
It is almost inevitable that the relocation of production capacities from China to neighbouring counties will imply pollution of the environment, in particular of the ocean. Not to mention the fact that such a grandiose initiative will alter the look of many regions beyond recognition, changing the lives of millions of people (sometimes for the better, and sometimes for the worse), and destroying the fragile environmental balance.
Politically, far from everybody is pleased with the Chinese initiative. India’s Prime Minister Narendra Modi has ambitious plans to develop the Chabahar transport corridor linking India with Central and Europe through Iran.
According to India’s Prime Minister, the Chinese project is perceived as a “threat to national interest”. The Indian government has already allocated approximately USD 500 million for the development of Chabahar and is concerned about Chinese competition. Another country is not that happy about China’s initiative – Myanmar. The country’s government has been trying to reduce its economy’s dependence on China, in particular after regime change in 2012.
At the University of Malay, they assume that the New Silk Road could also suffer from the situation in the region. Political instability and imperfections in the governance system in certain countries could have an adverse impact on the practicalities of the trading corridors, and these factors need to be taken into account.
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