China experienced major economic growth over last couple of years and now, president Xi Jinping has promised to take the economy to next level as he promised to take China to the center of world stage.
He revealed the goal as he kicked off the inaugural Belt and Road Forum in Beijing on Sunday with China’s president and Communist Party leader, as the main showcase. During the event, the president promised $100 billion for China’s development banks in an attempt to accelerate infrastructure projects in Asia, Europe and Africa.
However, as of now, it’s unclear how the initiative will begin as Michael Kovrig said to Bloomberg News, “Western countries are skeptical that they will really benefit economically, and worry that the initiative will increase Chinese influence, both economic and geopolitical, across Eurasia and beyond.”
“The main significance of the forum is optics: Making Xi Jinping look presidential and effective at home and making China look rich and powerful on the world stage.”
Interestingly, despite being revealed as a worldwide development project, the investment will not be given as aid. Interested nations will be required to take the funding as a debt in order to fund different infrastructure projects. Understandably, American and European economists have criticized the plan for its reliance on risky and unsustainable debt. We’ll need to wait and see how the plan for creating new economic order goes through as more details will come to light in the coming months.
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