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China’s One Belt, One Road Initiative: Economic Issues

CRS (Congress) · Karen M. Sutter, Michael D. Sutherland ·

Executive Summary

China's Belt and Road Initiative (BRI) is a multifaceted foreign economic policy aimed at expanding its global economic reach and influence through infrastructure, trade, and technology networks. The initiative, which includes land, maritime, digital, and polar silk roads, seeks to integrate global supply chains and promote Chinese standards and firms. The U.S. and its allies view BRI as a challenge to their global influence, raising concerns about debt traps, opaque lending, and potential military applications.

Why It Matters

This document is crucial for defense and geopolitical analysts as it details China's primary tool for expanding its global influence, highlighting economic strategies that have significant geopolitical and potential military implications, and outlining U.S. counter-strategies.

Key Takeaways

  • BRI aims to create PRC-centered global production, trade, and infrastructure networks, expanding China's economic and technological influence.
  • U.S. concerns include debt traps, opaque lending practices, and the potential for BRI projects to serve China's military-civil fusion strategy.
  • The U.S. is developing alternative financing programs and scrutinizing BRI projects to counter China's growing global economic and strategic footprint.

Strategic Relevance

The Belt and Road Initiative is a cornerstone of China's grand strategy to reshape the global economic and geopolitical order, challenging U.S. hegemony and creating dependencies. Understanding its economic mechanisms and potential dual-use applications is critical for assessing future power dynamics and regional stability.

Source Website

Key Entities

ChinaBelt and Road Initiative (BRI)United StatesCongressXi JinpingCRSHuaweiZTEAlibabaDjiboutiHambantota PortPakistan

Best For

Policy MakersGeopolitical AnalystsEconomic AnalystsDefense Strategists

Related Themes

Global Power CompetitionEconomic StatecraftInfrastructure DiplomacyDebt DiplomacyMilitary-Civil FusionIndo-Pacific Strategy

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