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EU launches Asia strategy to rival China’s ‘new Silk Road’
BRUSSELS, Sept 26, 2018 (BSS/AFP) – As doubts grow over China’s vast “Belt
and Road” trade infrastructure project, the EU is launching an alternative
plan for Asia that it says will not saddle countries with debt they cannot
repay.
EU member countries are expected to sign off on the new “Asia connectivity
strategy” — which aims to improve transport, digital and energy links while
promoting environmental and labour standards — in time for a major summit of
European and Asian leaders next month.
Brussels insists the scheme is not a response to any other player, but its
launch comes as the sheen fades on Beijing’s “new Silk Road” initiative,
which envisions railways, roads and ports being built across the globe using
billions of dollars in Chinese loans.
Federica Mogherini, the EU’s diplomatic chief, said talks have been going
on for several months with a number of Asian countries that were “interested
in looking at the European way”.
“Our initiative will aim at creating jobs and economic growth and benefits
for the local communities,” she told reporters.
“I would not say if this is different from other’s proposal but this is
our proposal.”
The new strategy comes after European Commission President Jean-Claude
Juncker called for a more muscular EU foreign policy to match the bloc’s
economic clout, taking on not just US President Donald Trump’s “America
First” approach but also China’s energetic involvement in Africa and Asia.
Maaike Okano-Heijmans, an EU-Asia relations expert at the Clingendael
Institute in the Netherlands, said the initiative was a “very important step”
after criticism of the EU in some quarters that it has been slow to respond
to Chinese soft power plays.
“We cannot accuse them of not having a vision any more. The challenge is
how to turn this into something that’s really an alternative to some
countries. Because that requires money and more money and more money,” Okano-
Heijmans told AFP, saying “nobody can rival Chinese money”.
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– Debt, digital concerns –
President Xi Jinping said earlier this month that China’s trade with Belt
and Road countries had exceeded $5 trillion, with outward direct investment
surpassing $60 billion.
But some countries are beginning to question whether the strings attached
to the money make it more of a burden than a benefit.
While much of the hard detail of the EU scheme — including the vital
question of finance — is yet to be worked out, the proposal stresses the
importance of “high environmental and social standards” and of the “fiscal
and financial sustainability of infrastructure projects”.
This appears designed to directly address a major criticism of the Belt
and Road plan, launched in 2013, that the apparent Chinese largesse is
effectively creating debt traps.
These fears were highlighted last year when Sri Lanka had to grant a 99-
year lease on a strategic port to Beijing over its inability to repay loans
for the $1.4-billion project.
Concerns have grown and, in August, Malaysia said it was shelving three
Beijing-backed projects, including a $20 billion railway, while Pakistan —
until recently an enthusiastic recipient of Chinese money — has vowed more
transparency amid fears about the country’s ability to repay loans.
And as cyber security becomes an increasingly important consideration for
governments around the world, the EU’s insistence on transparency may prove
more appealing than involvement in China’s “digital Silk Road”, said Philippe
Le Corre of the Europe and Asia Programs at the Carnegie Endowment for
International Peace.
“It’s basically allowing Chinese telecoms companies to build
infrastructures in these countries, gifting access to portals and e-commerce
platforms, anything digital,” Le Corre told AFP.
“You’re basically having a Chinese footprint on a very long term and
you’re not leaving an alternative.”
Some countries are beginning to realise, Le Corre said, that “it’s not
good to put all your eggs in the same basket and that being a dependent of
the Chinese empire is a big risk, certainly when it comes to controlling
information and controlling technology”.
BSS/AFP/HR/1020