Quotes and Quotas is a weekly digest of powerful phrases and facts that help explain Asia’s infrastructure push.
A special report by Nikkei Asian Review and The Banker which leverages data from the CSIS Reconnecting Asia Project has found that China's Belt and Road initiative holds considerable promise for countries in need of infrastructure investment along its route, however, participation has been hampered by challenges ranging from a lack of participation by local workers and banks to unmanageable debt hangovers.
Just 10 years ago, regular direct freight services from China to Europe did not exist. Today, they connect roughly 35 Chinese cities with 34 European cities. But despite their rapid advances, these lines must compete with maritime routes that have dominated commerce between Asia and Europe since the late fifteenth century. It remains to be seen how much trade they can capture.
The political damage Chinese investment in the CEE has created for the EU is already visible in its inability to act cohesively vis-à-vis China on trademark foreign policy issues, namely upholding the international rule of law and protecting human rights.
Chinese investments in Central and Eastern Europe are raising concerns about transparency and accountability, but for now, the risks are relatively manageable given the modest scope of investment.
Our “Big Questions” series brings together leading scholars, former policymakers, and top industry experts to tackle critical questions. In the seventh part of this series, we asked a group of experts to comment on China's growing infrastructure investment in Central and Eastern Europe (CEE).