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Written by: Gao Jinyou and Chen Xunlin
2020-10-06 16:37
Last update date: 2020-10-06 16:40
The SAR government has coldly treated the "Belt and Road", and the public opinion in Hong Kong, dominated by Western media, also has many misunderstandings about the "Belt and Road", and even believes that behind the trillions of opportunities, only China can benefit.
In the controversy, the related bubble effect and economic risks have attracted much attention from the outside world. Among them, "debt-trap diplomacy" and "low transparency" have been questioned.
Chen Liji, chairman of Kaishun Energy, a Hong Kong listed company that has business dealings with the "Belt and Road" countries, pointed out that the mainstream Western media, based on ideological prejudice, is easy to misinterpret the original meaning of the "Belt and Road". However, the West takes out of context and focuses one-sidedly on the impact of debt." This also affects Hong Kong people's perception of the "Belt and Road" to a certain extent.
Question 1: "Debt Trap Diplomacy"
The most controversial is Sri Lanka's Hambantota Port, which began construction under Chinese loans in 2007.
In fact, this project appeared before the "One Belt, One Road" initiative. At that time, India and the multilateral development banks were not optimistic about the development prospects of the port, and the construction of the port was expensive, so they refused to invest. After several negotiations, China took over.
The cost of the first phase of the project reached 360 million US dollars (about 2.79 billion Hong Kong dollars), of which 85% came from the Export-Import Bank of China, and the construction project was contracted by two Chinese companies; in the second phase of the project, the Export-Import Bank of China was divided into phases It also lent US$808 million (approximately HK$6.26 billion) at different interest rates. Until last year, Sri Lanka was in debt. Due to its inability to repay the loan, China Merchants Group bought 70% of Hambantota Port for US$1.12 billion (approximately HK$8.68 billion). Acquired the control of the port and leased 15,000 acres of land in the surrounding area to establish a special investment zone in 1999.
The move of the Sri Lankan government to use Hambantota Port assets to repay its debts has caused China to be blamed.
(Xinhua News Agency)
This port agreement is regarded as a move by the Sri Lankan government to repay debts with assets, and it is also accused of losing part of its territorial sovereignty, causing China to be blamed. It is believed that its commitment to global investment and lending projects is actually setting a debt trap for weak countries. , To protect their own interests-this is the "debt trap diplomacy" that the West has talked about since 2018, and the Hambantota Port incident also seems to corroborate this statement.
But on the other hand, Rhodium Group, a New York consulting firm, published an analysis report last year, studying 40 investment projects that China had to renegotiate after lending to the "Belt and Road" countries in the past five years, and found the so-called "debt trap" The argument of "diplomacy" may be exaggerated.
Agatha Kratz, the author of the Rongding Report, said that only the Hambantota Port project had asset seizures. Other projects mainly focused on extending the repayment period and exempting debt; but he also mentioned that many arrangements are Made without formal negotiations, may mean that China provides debt relief in order to gain political advantage.
Some of the Belt and Road projects have been controversial, affecting society's perception of the Belt and Road.
(Data Picture/Photo by Zhang Haowei)
Question 2: Insufficient transparency
The Center for Global Development (CGD), a US think tank, published a research report on the debt situation of countries along the “Belt and Road” in 2018. It pointed out that among the 68 countries that signed the “Belt and Road” agreement, 8 countries fell into “sovereign debt” due to future financing increases. risk.
According to the report, nearly 80% of the growth in foreign debt comes from Chinese loans. Unlike other loans, the loan details and bidding procedures are not transparent, and the hidden conditions are unknown. Therefore, if the loan cannot be repaid, the country may suffer huge losses.
The Kenya Standard Gauge Railway (SGR, also known as the "Monai Railway"), which was jointly constructed by the Kenyan State-owned Kenya Railway Company and China, was recently sentenced by the local high court to violate the law due to lack of transparency. Hot discussion.
In 2014, Kenyan political activist Okiya Omtatah filed a judicial lawsuit against SGR, claiming that the railway project involves public interest and should follow fair, transparent and competitive procurement procedures, but the entire project contract has not been publicly tendered , It is only privately given to a certain unit, which is suspected of privately granting and accepting, so it is filed in the High Court to request a ruling that the project is illegal.
The Kenyan Court of Appeal ruled in June this year that it is illegal for the state-owned railway project to not tender.
The above is excerpted from the 234th issue of "Hong Kong 01" Weekly (October 5, 2020) "The Belt and Road in Controversy". If you want to read the full text, please
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Selected content of the 234 issue of "Hong Kong 01" Weekly News:
[Cover Story] Reorganizing Hong Kong's Talent Strategy through "One Belt One Road"
What kind of smart city blueprint 2.0 does Hong Kong need for rapid overtaking in the neighborhood?
Dialogue with reformist youth Huang Yushun Hong Kong must "be clearer and clearer" in reforms
Li Junya was suddenly "double embarrassment" from Hong Kong and Taiwan reporters who extended the trial period
NVIDIA creates the largest M&A in semiconductor history as the chip leader still to be confirmed
The rise of MIT in France challenges the hegemony of English universities
Close the door to the country to explore different possible cities Under the epidemic, "home vacation" becomes a new trend
One Belt One Road In-Depth Report 01 Weekly