For its answer to the war against Ukraine, the Western world is looking for partners all over the world. But after the unexpectedly widespread support in the United Nations for Russia’s condemnation, many countries of the Global South have since taken a rather more neutral attitude, because the escalation of the conflict goes against their own interests. There are signs of a new alliance emerging, which could benefit China in particular.
The label for the multilateral copy of China’s New Silk Roads recently announced at the G7 summit by U.S. President Biden is gruesome: Build Back Better World, or B3W. As a “values-driven, high-standard, and transparent infrastructure partnership” it is to compete with China’s infrastructure activities. So far, however, B3W is merely an anaemic PR product.
CONTENTS: Blog posts: Europe’s geopolitical ghost ride in the Indo-Pacific / “Debt diplomacy” as a popular refrain in the intensifying debate about China’s economic and political expansion // Readings: A new book on ‘how a former socialist country rescues world capitalism’ / Jonathan Hillman, ‘The Emperor’s New Road’ / Study on ‘social risks to sustainable development’ in China’s BRI.
The narrative of Chinese “debt diplomacy” is rather simplistic: Lending by state-owned banks is not transparent, encourages corruption, and serves primarily Chinese corporations, it goes. This would lead inevitably into a debt trap. It appears as if Beijing’s policy is fundamentally different from the practices of international financial institutions, governments of Western industrialized countries or large commercial banks.