President Joe Biden and Australia’s Prime Minister Anthony Albanese hold a news conference in the Rose Garden of the White House in Washington on, Oct. 25, 2023.
| Photo Credit: AP

U.S. President Joe Biden has said that he is convinced that one of the reasons why Hamas launched a terrorist attack on Israel was because of the recent announcement during the G-20 Summit in New Delhi on the ambitious India-Middle East-Europe Economic Corridor that integrates the entire region with a network of railroad.

Israel has launched a massive counter-offensive against Hamas after unprecedented attacks by the militant group on October 7 killed more than 1,400 people.

Mr. Biden told reporters at a joint news conference with the visiting Australian Prime Minister Anthony Albanese that his analysis is based on his instinct and does not have any proof for this.

“I’m convinced one of the reasons Hamas attacked when they did, and I have no proof of this, just my instinct tells me, is because of the progress we were making towards regional integration for Israel, and regional integration overall. We can’t leave that work behind,” Mr. Biden said.

This is the second time in less than a week that Mr. Biden has mentioned the India-Middle East-Europe Economic Corridor (IMEEC) as a potential reason for the terrorist attack by Hamas.

The new economic corridor, which many see as an alternative to China’s Belt and Road Initiative, was jointly announced by the leaders of the U.S., India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union on the sidelines of the G20 summit in September.

The corridor comprises an eastern corridor connecting India to the Gulf region and a northern corridor connecting the Gulf region to Europe.

Mr. Biden said in the past few weeks, he has spoken to leaders throughout the region, including King Abdullah of Jordan, President Sisi of Egypt, President Abbas of the Palestinian Authority, and Crown Prince of Saudi Arabia about making sure there’s real hope in the region for a better future about the need to work toward a greater integration for Israel while insisting that the aspirations of the Palestinian people will be part, will be part of that future as well.

China’s President Xi Jinping speaks during the opening ceremony of the third Belt and Road Forum for International Cooperation at the Great Hall of the People in Beijing on October 18, 2023.
| Photo Credit: AFP

China’s Belt and Road Initiative looks to become smaller and greener after a decade of big projects that boosted trade but left big debts and raised environmental concerns.

The shift comes as leaders from across the developing world descend on Beijing this week for a government-organized forum on what is known as BRI for short.

The initiative has built power plants, roads, railroads and ports around the world and deepened China’s relations with Africa, Asia, Latin America and the Mideast. It is a major part of Chinese President Xi Jinping’s push for China to play a larger role in global affairs.

Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans.

The stated goal was to grow trade and the economy by improving China’s connections with the rest of the world in a 21st-century version of the Silk Road trading routes from China to the Middle East and onto Europe.

Mr. Xi unveiled the concept in broad terms on visits to Kazakhstan and Indonesia in 2013 and it took shape in the ensuing years, driving the construction of major projects from railroads in Kenya and Laos to power plants in Pakistan and Indonesia.

A total of 152 countries have signed a BRI agreement with China, though Italy, the only western European country to do so, is expected to drop out when it comes time to renew in March of next year.

“Italy suffered a net loss,” said Alessia Amighini, an analyst at the Italian think tank ISPI, as the trade deficit with China more than doubled since Italy joined in 2019.

China became a major financer of development projects under BRI, on par with the World Bank. The Chinese government says the initiative has launched more than 3,000 projects and “galvanized” nearly $1 trillion in investment.

China filled a gap left as other lenders shifted to areas such as health and education and away from infrastructure after coming under criticism for the impact major building projects can have on the environment and local communities, said Kevin Gallagher, the director of the Boston University Global Development Policy Center.

Chinese-financed projects have faced similar criticism, from displacing populations to adding tons of climate-changing greenhouse gases to the atmosphere.

Chinese development banks provided money for the BRI projects as loans, and some governments have been unable to pay them back.

That has led to allegations by the U.S., India and others that China was engaging in “debt trap” diplomacy: Making loans they knew governments would default on, allowing Chinese interests to take control of the assets. An oft-cited example is a Sri Lankan port that the government ended up leasing to a Chinese company for 99 years.

Many economists say that China did not make the bad loans intentionally. Now, having learned the hard way through defaults, China development banks are pulling back. Chinese development loans have already plummeted in recent years as the banks have become more cautious about lending and many recipient countries are less able to borrow, given their already high levels of debt.

Chinese loans have been a major contributor to the huge debt burdens that are weighing on economies in countries such as Zambia and Pakistan. Sri Lanka said last week that it had reached an agreement with the Export-Import Bank of China on key terms and principles for restructuring its debt as it tries to emerge from an economic crisis that toppled the government last year.

Future BRI projects are likely not only to be smaller and greener but also rely more on investment by Chinese companies than on development loans to governments.

Christoph Nedopil, director of the Asia Institute at Griffith University in Australia, believes that China will still undertake some large projects, including high-visibility ones such as railways and others, including oil and gas pipelines, that have a revenue stream to pay back the investment.

A recent example is the launch of a Chinese high-speed railway in Indonesia with much fanfare in both countries.

On the climate front, China has pledged to stop building coal power plants overseas, though it remains involved in some, and is encouraging projects related to the green transition, Mr. Nedopil said. These range from wind and solar farms to factories for electric vehicle batteries, such as a huge lithium-ion battery plant that has stirred environmental concerns in BRI-partner Hungary.

Residents walk by the logo for the Belt and Road Forum outside the China National Convention Center in Beijing, on October 16, 2023. A stream of leaders of emerging market countries are arriving in Beijing for a meeting organised by the Chinese government that will mark the 10th anniversary of its Belt and Road Initiative.
| Photo Credit: AP

China prepared on Monday to host representatives of 130 countries for a forum that will be overshadowed by the Israel-Gaza war, as an increasingly assertive Beijing is asked to help de-escalate the violence.

At the top of the invite list to China’s Belt and Road Initiative (BRI) forum is Russia’s President Vladimir Putin, on his first trip to a major global power since the Ukraine invasion threw his regime into international isolation.

Leaders have begun to trickle into the Chinese capital for a gala event marking a decade of the BRI — a key project of President Xi Jinping to extend China’s global reach.

While China hopes the forum will help boost its standing as a leading global power, Israel’s war with Palestinian militant organisation Hamas will continue to dominate the headlines.

Israel declared war on the Islamist group after waves of its fighters broke through the heavily fortified border on October 7, shooting, stabbing and burning to death more than 1,400 people, most of them civilians. Under heavy Israeli bombardment of the Hamas-ruled Gaza Strip, more than one million people have fled their homes in scenes of chaos and despair.

Israel’s bombing has left at least 2,670 people dead in Gaza, mainly civilians, and flattened entire neighbourhoods.

China’s Foreign Minister Wang Yi has condemned Israel’s actions for going “beyond the scope of self-defence” and called for it to “cease its collective punishment of the people of Gaza”.

“(Israel) should listen earnestly to the calls of the international community and the UN secretary general, and cease its collective punishment of the people of Gaza,” Wang said Sunday, in what is the strongest stance China has expressed so far on the conflict.

Beijing has been criticised by Western officials for not specifically naming Hamas in its statements on the Israel-Gaza conflict.

Mr. Wang had on Sunday spoken with US Secretary of State Antony Blinken, who called on China to use its “influence” in the Middle East to push for calm.

China has a warm relationship with Iran, whose clerical leadership supports both Hamas and Hezbollah, the Lebanese militant group that could open a second front against Israel.

Earlier this year, China brokered an entente between former regional foes Iran and Saudi Arabia.

Beijing’s special envoy Zhai Jun will visit the Middle East this week to push for a ceasefire in the Israel-Hamas conflict and promote peace talks, China’s state broadcaster CCTV said on Sunday, without specifying which countries he would visit.

Niva Yau, a nonresident fellow with the Atlantic Council’s Global China Hub, told AFP the BRI summit would allow Beijing to frame attendance as a gesture of support for its position.

“Any head of state that attends the summit, it’s almost as if they agree with Beijing’s positions on these global issues,” she said.

Strategic dependence

A number of leaders have already arrived in Beijing ahead of the two-day forum, which kicks off Tuesday.

Among them are Hungarian Prime Minister Viktor Orban, Chilean President Gabriel Boric, Kenyan President William Ruto and Ethiopian Prime Minister Abiy Ahmed.

On Monday Russia’s top diplomat Sergei Lavrov flew into Beijing and within hours held talks with China’s Foreign Minister Wang Yi.

Mr. Putin — whose strategic dependence on China has only grown since his invasion of neighbouring Ukraine thrust his country into international isolation — is expected to arrive overnight.

This year, trade between China and Russia has soared to levels not seen since the beginning of Moscow’s war in Ukraine, with Chinese imports of Russian oil offering Moscow a critical lifeline as international sanctions bite.

China has refused to condemn the Ukraine war in an effort to position itself as a neutral party, while at the same time offering Moscow vital diplomatic and financial support.

At the heart of the deepening partnership is the relationship between Xi and Putin, who have described each other as “dear friends”.

Their alliance is also forged by a symbiotic necessity, each seeing the other as a necessary bulwark in their shared struggle against Western dominance.

In an interview with Chinese state broadcaster CGTN ahead of his visit this week, Mr. Putin hailed ties with Beijing and the “mutual benefits” of the BRI.

“President Putin pointed out that a multipolar world is taking shape, and the concepts and initiatives put forward by President Xi Jinping are highly relevant and significant,” CGTN reported.

“He stated that President Xi Jinping is a well-recognised leader on the world stage and is a true world leader,” it said.

Mr. Putin also reportedly “shared pleasant memories between President Xi and him, and hoped tradition continues when they meet in China in the future.”

A visitor poses for photos at the “Belt and Road” summit in Hong Kong, China September 14, 2023. As the BRI marks 10 years, China has pushed back against criticism of the plan, particularly with regard to projects leaving countries with debt. 
| Photo Credit: REUTERS

India is likely to skip China’s third summit marking President Xi Jinping’s signature Belt and Road Initiative (BRI), which, Beijing announced on Wednesday, will be held on October 17 in the Chinese capital.

Russian President Vladimir Putin is expected to attend the Belt and Road Forum (BRF) in Beijing, with the Russian leader also present at the previous two summits in 2017 and 2019. Sri Lankan President Ranil Wickremesinghe is also likely to attend, Sri Lankan media reported, among several leaders from countries in Asia, Africa and Latin America. Indonesian President Joko Widodo is also expected, according to reports.

Also read: Explained | What is the status of China’s Belt and Road Initiative in South Asia?

India did not attend the summits in 2017 and 2019, having raised concerns about the BRI, particularly over the flagship China Pakistan Economic Corridor (CPEC) project which runs through Pakistan-occupied Kashmir.

As the BRI marks 10 years, China has this week pushed back against criticism of the plan, particularly with regard to projects leaving countries with debt. Beijing, at the same time, appears to be rethinking how it goes forward with the BRI, and scaling back on investments. Reports last week, citing the minutes of a meeting between China and Pakistan, said Beijing had turned down requests for new projects there reportedly due to security concerns in Pakistan, which have not abated more than a decade into CPEC.

Li Kexin, Director-General of the Chinese Foreign Ministry’s Department of International Economic Affairs, told reporters on Tuesday that representatives from over 130 countries had already confirmed attendance at the BRF, which will open with a speech by President Xi. Mr. Li said more than 150 countries had signed on to the BRI so far.  “The circle of friends has grown larger and larger, which fully proves that the initiative does not seek to form any closed and narrow circles,” he said.

The total investment in the plan had reached $380 billion between 2013 and 2022, according to figures released this week by China’s Ministry of Commerce.

Also read: Analysis | China’s Belt and Road Initiative fuels Ladakh standoff

Some deals are expected to be signed on the sidelines of the BRF. Sri Lankan media reported further investments into the Colombo Port City project may be announced next week during Mr. Wickremesinghe’s visit.

Last month, Nepal agreed to take forward cross-border connectivity projects with China during the visit of Prime Minister Pushpa Kamal Dahal Prachanda to Beijing. Both sides “agreed to strengthen connectivity in such areas as ports, roads, railways, airways and grids in an orderly manner” and “jointly build the Trans-Himalayan Multi-Dimensional Connectivity Network”, as the cross-border plan under the BRI is called.

China has refused to further expand cooperation in the areas of energy, water management, and climate change under the multi-billion dollar China-Pakistan Economic Corridor (CPEC), it emerged on September 25, signalling a strain in the ‘ironclad’ friendship between the two all-weather allies.

Cash-strapped Pakistan also gave up its opposition to setting up a new imported coal-fired power plant in Gwadar in Balochistan province and agreed to a number of Chinese demands to address Beijing’s concerns, The Express Tribune newspaper reported, citing the signed minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC.

The JCC is a strategic decision-making body of the CPEC and its 11th meeting was held virtually on October 27 last year on the insistence of the Pakistan Muslim League-Nawaz (PML-N)-led government that wanted to showcase some progress.

However, the minutes of the meeting were signed almost a year later on July 31 during the visit of Chinese vice premier He Lifeng, highlighting the difference of opinions on both sides that led to such a huge delay in reaching a consensus, the report said.

When contacted, the Ministry of Planning stated that it was a global practice for the minutes of meetings between two countries to be signed by both sides only after due consultation and evolving consensus.

Interestingly, the final draft shared with Beijing by Pakistan and the final minutes signed by both sides were different in many ways, the report said.

China’s disagreement to further expand cooperation in areas of energy, water management, and climate change under the CPEC underscores “the challenges that both the sides are facing in deepening the economic ties”, it said.

The $60 billion CPEC, which connects Gwadar Port in Pakistan’s Balochistan with China’s Xinjiang province, is the flagship project of China’s ambitious multi-billion-dollar Belt and Road Initiative (BRI). The BRI is seen as an attempt by China to further its influence abroad with infrastructure projects funded by Chinese investments all over the world.

The CPEC is a collection of infrastructure and other projects under construction throughout Pakistan since 2013. India has protested to China over the CPEC as it is being laid through Pakistan-occupied Kashmir (PoK).

The details of the final minutes of the 11th JCC showed that China did not agree to a host of measures that Pakistan had proposed in the areas of energy, water management, climate change and tourism in Gilgit-Baltistan, Khyber-Pakhtunkhwa, PoK and the coastal areas.

China excluded cooperation in the areas of cross-border tourism in Gilgit-Baltistan, Khyber-Pakhtunkhwa, PoK and cooperation for the promotion of coastal tourism from the final minutes, the details showed.

China also did not agree to Pakistan’s proposal for the inclusion of Water Resources Management and Climate Change and Urban Infrastructure Development in the CPEC framework. The proposal for setting up a new joint working group on water resources management and climate change was also rejected by China.

China excluded the issue of financial challenges being faced by the power companies from the final minutes.

Beijing also did not agree to a proposal to include a 500kv transmission line from Hub to Gwadar to link the seaport city with the national grid in the CPEC framework.

China did not agree to “carry out joint studies for future development of Thar coal blocks, including development of mega power parks and power evacuation infrastructure, with a view to meet Pakistan’s energy needs from indigenous resources, conversion of coal into other products for domestic demand as well as exports”, the report said.

Similarly, there is no mention of the South-North gas pipeline project in the final minutes. The draft minutes mentioned the examination of a feasibility study and Chinese cooperation for the purpose.

Pakistan had proposed Chinese participation in a strategic underground gas storage project but there is no mention of this mega project in the final minutes.

Islamabad had also proposed the participation of China in the national seismic study for sedimentary areas and sought Chinese equipment. But this idea is also shelved at the bilateral level.

Pakistan proposed joint exploration, development, and marketing of metallic minerals and sought Chinese technology, but the final minutes were silent on this issue too, according to the Express Tribune report.

China also did not agree to Pakistan’s proposal of developing a policy framework for coal gasification to fertiliser projects based on Thar coal.

Meanwhile, Pakistan has given significant concessions to China on the issue of setting up the 300MW Gwadar Power Plant.

Islamabad wanted to either shelve the 300MW project or change its location to Thar to use the local coal. However, China did not agree to it, the report said.

Pakistan also wanted the conversion of the imported fuel-based Gwadar plant to Thar coal to address energy security and liquidity issues to which China did not agree.

Pakistan also committed that it would follow the consensus reached by two sides, and will direct the Pakistani power purchase companies to stop deducting the capacity power rate and return the deducted power rate.

To ensure the normal operations of CPEC power projects, the Pakistani side promised to take necessary measures to ensure timely exchange to US dollars for CPEC power projects to buy necessary fuels, the report said.

Welcoming the announcement of the ambitious India-Middle East-Europe Economic Corridor (IMEC), Israeli Prime Minister Benjamin Netanyahu has described it as the “largest cooperation project in our history” that will “change the face of the Middle East, Israel, and will affect the entire world”.

The new economic corridor, which many see as an alternative to China’s Belt and Road Initiative, was jointly announced on September 9 by the leaders of the U.S., India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union on the sidelines of the G20 summit in New Delhi.

In a video message released late on Saturday evening, Mr. Netanyahu said that Israel is at the focus of an unprecedented international project that will link infrastructure from Asia to Europe.

“I welcome the statement that was released today by the United States, India, Saudi Arabia, the UAE and the European Union, as well as France, Italy and Germany,” Mr. Netanyahu said.

“A good week to you, citizens of Israel. This evening, I am pleased to inform you [of] some major news,” the Israeli Prime Minister said.

His message came as hundreds of thousands of Israelis protested on the streets against the government’s judicial overhaul plan they think will undermine the authority of the judiciary.

“Israel is at the focus of an unprecedented international project that will link infrastructure from Asia to Europe. This link will also realise a multi-year vision that will change the face of the Middle East, and Israel, and will affect the entire world,” he said.

“This vision starts in India, passes through the United Arab Emirates [UAE], Saudi Arabia, Jordan and Israel before reaching Europe,” Mr. Netanyahu said.

The announcement of the ambitious project comes amid discussions around the normalisation of ties between Israel and Saudi Arabia.

The two countries do not have diplomatic relations but the Gulf kingdom has been seen to be recently softening its position towards Israel by allowing Israeli airlines to use its air space.

It is said to have also demanded, as per media reports, several concessions from the United States for the normalisation of ties to happen with the Jewish state, some very contentious ones.

“They announced the launch of a pioneering initiative to develop an economic corridor from India, through the Middle East, to Europe. I am pleased to inform you, citizens of Israel, that our country, the State of Israel, will be a central junction in this economic corridor,” Mr. Netanyahu said.

“Our railways and ports will open a new gateway from India, through the Middle East, to Europe, and back – from Europe to India via Jordan, Saudi Arabia and the UAE,” the Israeli Prime Minister, battling a downturn in the economy in the face of his controversial Judicial overhaul plans, said.

“I would like to thank U.S. President [Joe] Biden and his administration for the major effort that has led us to today’s historic announcement. Several months ago, the U.S. contacted us regarding the realisation of this historic opportunity. Since then, it has held urgent diplomatic contacts in order to bring about today’s breakthrough,” he stressed.

The project reshapes the face of our region and allows a dream to become reality, he said.

The initiative includes the construction of railways, the laying of a hydrogen pipeline, the energy of the future, the laying of fibre optic communications cables, the laying of electricity cables and more infrastructure, the Israeli Prime Minister noted.

“The State of Israel will contribute its capabilities, all of its experience, momentum and commitment, to realise the largest cooperation project in our history. All government ministries will be instructed to join in realizing this dream,” he emphasised.

“I have directed the National Security Council, in the Prime Minister’s Office, to coordinate the staff work and also the close cooperation with the U.S. and other countries in order for this vision to become reality as soon as possible,” Mr. Netanyahu said.

The project will lead us to a new, unique and unprecedented era of global and regional cooperation and involvement.

“Together we will succeed,” Mr. Netanyahu asserted.

With protesters turning up in hundreds of thousands every weekend for the last 36 weeks, Israel faces threats of mass emigration, resignations in critical positions, army desertions, strikes and flight of capital backed by gloomy predictions from prestigious global credit rating agencies.

Mr. Netanyahu has been struggling to show that everything is under control and the economy is stable amid widespread angry protests. He also hinted at the major link project during his trip to Greece and Cyprus early this week to boost the morale of his citizens and supporters.

File picture of a Pakistan Navy soldier standing guard while a loaded Chinese ship prepares to depart, at Gwadar port, about 700 km west of Karachi. The port is expected to be a part of China’s ambitious Belt and Road Initiative
| Photo Credit: AP

China said on Thursday that 90 countries have confirmed attendance for its Belt and Road Initiative conference being held in October,

The third Belt and Road Forum for International Cooperation (BRF) will be held in Beijing in October, the foreign ministry has previously said, with 2023 marking the 10th anniversary of the Belt and Road Initiative (BRI).

Several foreign leaders are expected to attend, including Serbian President Aleksandar Vucic and Argentine President Alberto Fernandez, state media reported.

Russian President Vladimir Putin also has a scheduled visit to China in October when the country hosts the One Belt One Road forum, Putin’s aide Yuri Ushakov said recently, according to Russia’s state news agency TASS.

“We have received an invitation and plan to go to China,” Ushakov said, according to a report from the Global Times.

China’s foreign ministry said the country has signed Belt and Road cooperation documents with more than 150 countries and over 30 international organizations, according to Xinhua.

“Over the past decade, Belt and Road cooperation has achieved fruitful outcomes,” Chinese foreign ministry spokesperson Wang Wenbin recently said at a press conference, adding that it has established more than 3,000 cooperation projects and galvanized nearly $1 trillion of investment, state media reported.

Critics see the ambitious Belt and Road initiative — billed as recreating the ancient Silk Road to boost global trade infrastructure — as a tool for President Xi Jinping’s China to spread its geopolitical and economic influence.

Debate in the West over economic dependence on China has cast a shadow over longer-term trade and investment relations with Beijing. Italy, the sole Group of Seven nation in Belt and Road, said the decision by a previous government to join had been “atrocious”.