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There’s a new highway in Pakistan.
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And a new rail terminal in Kazakhstan.
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A sea port in Sri Lanka recently opened.
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As well as this bridge in rural Laos.
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What’s interesting is that they’re all part of one country’s project that spans
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3 continents and touches over 60% of the world’s population.
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If you connect the dots, it’s not hard to see which country that is.
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This is China's Belt and Road Initiative -- the most ambitious infrastructure project in modern
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history that's designed to reroute global trade.
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It's how China plans to become the world’s next superpower.
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It’s 2013 and Chinese president, Xi Jinping
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is giving a speech in Kazakhstan where he mentions the Ancient Silk Road:
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A network of trade routes that spread goods, ideas, and culture across Europe, the Middle
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East, and China as far back as 200 BC.
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He then says:
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"we should take an innovative approach and jointly build an economic belt along the Silk
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Road" A month later, Xi is in Indonesia:
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"The two sides should work together to build a maritime silk road for the 21st century"
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These two phrases were the first mentions of Xi’s legacy project, the multi-trillion
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dollar Belt and Road Initiative, or BRI.
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They’re also the two components of the plan.
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There’s an overland Economic Belt of 6 corridors that serves as new routes to get goods in
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and out of China.
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Like this railroad connecting China to London.
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And these gas pipelines from the Caspian sea to China
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And a high-speed train network in South East Asia.
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Then there’s the maritime silk road -- a chain of seaports stretching from the South
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China Sea to Africa that also directs trade to and from China.
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The BRI also includes oil refineries, industrial parks, power plants, mines, and fiber-optic
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networks - all designed to make it easier for the world to trade with China.
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So far, over 60 countries have reportedly signed agreements for these projects.
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And the list is growing, because China promotes it as a win-win for everyone.
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Take, for example, the BRI’s flagship project: Pakistan.
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Pause for Pakistan Like many countries in Central and South Asia,
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Pakistan has a stagnant economy, and a corruption problem.
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It wasn’t a popular place for foreign investment, that is until China came along.
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In 2001, China offered to build a brand new port in the small fishing town of Gwadar.
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By 2018, the port as well as highway and railway networks became a $62 billion dollar Corridor
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within the BRI.
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It’s where the Economic Belt meets the Maritime Silk Road.
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And it seemed to benefit both countries.
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Pakistan saw its highest GDP growth in 8 years and forged a tight relationship with a major
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world power.
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China, on the other hand, secured a new alternative route for goods, especially, oil and gas from
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the Middle East.
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Through projects like these, it also found a way to boost its economy.
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Chinese construction companies that had fewer opportunities within their own country saw
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a huge boost from BRI contracts — 7 out of the 10 biggest construction firms in the
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world are now Chinese.
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What tips the balance in China’s favor even more is a requirement that it be involved
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in building these projects.
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In Pakistan for example, Chinese workers have directly built projects, like this highway
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here, and a Chinese firm has worked with locals on a railway here in Serbia.
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China’s involvement is one of its very few demands and that’s set these deals apart
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so far.
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See, typically, to get investment from the West, countries have to meet strict ethical
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standards.
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But China’s offered billions of dollars — mostly in loans — with far fewer conditions.
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So, it’s no surprise the BRI has been a big hit with the less-democratic countries
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in the region.
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China has signed agreements with Authoritarian governments
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Military regimes.
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And some of the most corrupt countries in the world.
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It’s even affiliated with, Afghanistan, Ukraine, Yemen, and Iraq; all currently splintered
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by conflict.
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Because of China's willingness to loan money to unreliable countries, many experts have
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called the BRI a risky plan.
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Eventually, these countries will have to pay China back -- but corruption and conflict
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make that payback unlikely.
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A recent report found that many countries indebted to China are vulnerable, including
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8 that are at high risk of being unable to pay.
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So why does China keep lending?
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Because there’s more to the BRI than just economics:
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In Sri Lanka, China loaned about 1.5 billion
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dollars for a new deep-water port.
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It was a key stop on the Maritime Silk Road.
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But by 2017 it was clear Sri Lanka couldn’t pay back the loan, so instead, they gave China
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control of the port as part of a 99-year lease.
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China also controls the strategic port in Pakistan - where it has a 40-year lease, It’s
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pushing for a similar agreement in Myanmar, and it just opened an actual Chinese naval
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base in Djibouti.
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These are all signs of what’s called the String of Pearls theory.
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It predicts that China is trying to establish a string of naval bases in the Indian Ocean
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that will allow it to station ships and guard shipping routes that move through the region.
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So while China’s not getting its money back, its still achieving some very important strategic
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goals.
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China’s growing influence challenges the status of the US, which has been the world’s
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lone super-power for the last several decades.
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Isolation is trending in the US meaning it’s investing less and therefore losing influence
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around the world.
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The BRI is China's way of leveraging power to become a global leader.
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By building relationships and taking control of global trade, China is well on its way.