EU launches Asia strategy to rival China’s ‘new Silk Road’

[The Ronin]

As doubts grow over China's vast "Belt and Road" trade infrastructure project, the EU is launching an alternative plan for Asia that it says will not saddle countries with debt they cannot repay.

EU member countries are expected to sign off on the new "Asia connectivity strategy" -- which aims to improve transport, digital and energy links while promoting environmental and labour standards -- in time for a major summit of European and Asian leaders next month.

Brussels insists the scheme is not a response to any other player, but its launch comes as the sheen fades on Beijing's "new Silk Road" initiative, which envisions railways, roads and ports being built across the globe using billions of dollars in Chinese loans.

Federica Mogherini, the EU's diplomatic chief, said talks have been going on for several months with a number of Asian countries that were "interested in looking at the European way".

"Our initiative will aim at creating jobs and economic growth and benefits for the local communities," she told reporters.

"I would not say if this is different from other's proposal but this is our proposal."

The new strategy comes after European Commission President Jean-Claude Juncker called for a more muscular EU foreign policy to match the bloc's economic clout, taking on not just US President Donald Trump's "America First" approach but also China's energetic involvement in Africa and Asia.

Maaike Okano-Heijmans, an EU-Asia relations expert at the Clingendael Institute in the Netherlands, said the initiative was a "very important step" after criticism of the EU in some quarters that it has been slow to respond to Chinese soft power plays.

"We cannot accuse them of not having a vision any more. The challenge is how to turn this into something that's really an alternative to some countries. Because that requires money and more money and more money," Okano-Heijmans told AFP, saying "nobody can rival Chinese money".

- Debt, digital concerns -

AFP / LAKRUWAN WANNIARACHCHISri Lanka is a key link in the 'new silk road' but fears over a debt trap are growing
President Xi Jinping said earlier this month that China's trade with Belt and Road countries had exceeded $5 trillion, with outward direct investment surpassing $60 billion.

But some countries are beginning to question whether the strings attached to the money make it more of a burden than a benefit.

While much of the hard detail of the EU scheme -- including the vital question of finance -- is yet to be worked out, the proposal stresses the importance of "high environmental and social standards" and of the "fiscal and financial sustainability of infrastructure projects".

This appears designed to directly address a major criticism of the Belt and Road plan, launched in 2013, that the apparent Chinese largesse is effectively creating debt traps.

These fears were highlighted last year when Sri Lanka had to grant a 99-year lease on a strategic port to Beijing over its inability to repay loans for the $1.4-billion project.

Concerns have grown and, in August, Malaysia said it was shelving three Beijing-backed projects, including a $20 billion railway, while Pakistan -- until recently an enthusiastic recipient of Chinese money -- has vowed more transparency amid fears about the country's ability to repay loans.

And as cyber security becomes an increasingly important consideration for governments around the world, the EU's insistence on transparency may prove more appealing than involvement in China's "digital Silk Road", said Philippe Le Corre of the Europe and Asia Programs at the Carnegie Endowment for International Peace.

"It's basically allowing Chinese telecoms companies to build infrastructures in these countries, gifting access to portals and e-commerce platforms, anything digital," Le Corre told AFP.

"You're basically having a Chinese footprint on a very long term and you're not leaving an alternative."

Some countries are beginning to realise, Le Corre said, that "it's not good to put all your eggs in the same basket and that being a dependent of the Chinese empire is a big risk, certainly when it comes to controlling information and controlling technology".

https://www.afp.com/en/news/23/eu-launches-asia-strategy-rival-chinas-new-silk-road-doc-19f3ox1

 

[Arsalan]

Wow, it really is getting on their nerves!!

 

[Sinnerman108]

Wow, it really is getting on their nerves!!

The world order that kept the white man at the apex is under threat.

They will do everything to protect that.

 

[rambro]

China whatever u are doing, u are doing it right.

 

[IbnAbdullah]

Aoa

It is a good development in many ways.

"I would not say if this is different from other's proposal but this is our proposal."

This is a good thing. China's aggressive drive to build infrastructure in other countries to support and enhance it's trade network is forcing others to bring similar proposals. This will give many of the smaller players more options in light of the new competition.

Before this it was simply get Chinese investment or listen to western 'concerns' over how the Chinese investments are bad and not accept it without any alternative proposals.



Another way this seems like positive news is that the European Union seems to be moving outside of the shadow of the USofA. Which again is better for the smaller players.

Hopefully the main players this time around would focus their energies on trade instead of a cold war type scenario.

 

[SirHatesALot]

Hopefully the main players this time around would focus their energies on trade instead of a cold war type scenario.

THIS IS THE NEW COLD WAR

 

[LASER1]

More money

 

[royalharris]

Aoa

It is a good development in many ways.



This is a good thing. China's aggressive drive to build infrastructure in other countries to support and enhance it's trade network is forcing others to bring similar proposals. This will give many of the smaller players more options in light of the new competition.

Before this it was simply get Chinese investment or listen to western 'concerns' over how the Chinese investments are bad and not accept it without any alternative proposals.



Another way this seems like positive news is that the European Union seems to be moving outside of the shadow of the USofA. Which again is better for the smaller players.

Hopefully the main players this time around would focus their energies on trade instead of a cold war type scenario.

what is your suggestion to stop"chinese aggressive drive to build infrastructure in other countries"？
Maybe China should stop all the investment to pakistan？Stop all the CPEC project？

funny logic！

CPEC will be a win win For both
most important part，we wish a rich and strong pakistan

 

[Menthol]

This is quite interesting if EU can give an alternative without debt burden.

But how?

Give free money?

Or EU companies invest in infrastructure, and get profit from it for decades or a century. This is a more sensible plan.

 

[maximuswarrior]

Desperate sons of bitches. China has touched a very sensitive nerve.

The world order that kept the white man at the apex is under threat.

They will do everything to protect that.

The white man is angry and desperate. That is for sure.

 

[Basel]

As doubts grow over China's vast "Belt and Road" trade infrastructure project, the EU is launching an alternative plan for Asia that it says will not saddle countries with debt they cannot repay.

EU member countries are expected to sign off on the new "Asia connectivity strategy" -- which aims to improve transport, digital and energy links while promoting environmental and labour standards -- in time for a major summit of European and Asian leaders next month.

Brussels insists the scheme is not a response to any other player, but its launch comes as the sheen fades on Beijing's "new Silk Road" initiative, which envisions railways, roads and ports being built across the globe using billions of dollars in Chinese loans.

Federica Mogherini, the EU's diplomatic chief, said talks have been going on for several months with a number of Asian countries that were "interested in looking at the European way".

"Our initiative will aim at creating jobs and economic growth and benefits for the local communities," she told reporters.

"I would not say if this is different from other's proposal but this is our proposal."

The new strategy comes after European Commission President Jean-Claude Juncker called for a more muscular EU foreign policy to match the bloc's economic clout, taking on not just US President Donald Trump's "America First" approach but also China's energetic involvement in Africa and Asia.

Maaike Okano-Heijmans, an EU-Asia relations expert at the Clingendael Institute in the Netherlands, said the initiative was a "very important step" after criticism of the EU in some quarters that it has been slow to respond to Chinese soft power plays.

"We cannot accuse them of not having a vision any more. The challenge is how to turn this into something that's really an alternative to some countries. Because that requires money and more money and more money," Okano-Heijmans told AFP, saying "nobody can rival Chinese money".

- Debt, digital concerns -

AFP / LAKRUWAN WANNIARACHCHISri Lanka is a key link in the 'new silk road' but fears over a debt trap are growing
President Xi Jinping said earlier this month that China's trade with Belt and Road countries had exceeded $5 trillion, with outward direct investment surpassing $60 billion.

But some countries are beginning to question whether the strings attached to the money make it more of a burden than a benefit.

While much of the hard detail of the EU scheme -- including the vital question of finance -- is yet to be worked out, the proposal stresses the importance of "high environmental and social standards" and of the "fiscal and financial sustainability of infrastructure projects".

This appears designed to directly address a major criticism of the Belt and Road plan, launched in 2013, that the apparent Chinese largesse is effectively creating debt traps.

These fears were highlighted last year when Sri Lanka had to grant a 99-year lease on a strategic port to Beijing over its inability to repay loans for the $1.4-billion project.

Concerns have grown and, in August, Malaysia said it was shelving three Beijing-backed projects, including a $20 billion railway, while Pakistan -- until recently an enthusiastic recipient of Chinese money -- has vowed more transparency amid fears about the country's ability to repay loans.

And as cyber security becomes an increasingly important consideration for governments around the world, the EU's insistence on transparency may prove more appealing than involvement in China's "digital Silk Road", said Philippe Le Corre of the Europe and Asia Programs at the Carnegie Endowment for International Peace.

"It's basically allowing Chinese telecoms companies to build infrastructures in these countries, gifting access to portals and e-commerce platforms, anything digital," Le Corre told AFP.

"You're basically having a Chinese footprint on a very long term and you're not leaving an alternative."

Some countries are beginning to realise, Le Corre said, that "it's not good to put all your eggs in the same basket and that being a dependent of the Chinese empire is a big risk, certainly when it comes to controlling information and controlling technology".

https://www.afp.com/en/news/23/eu-launches-asia-strategy-rival-chinas-new-silk-road-doc-19f3ox1

West or white people will not allow any challenge to their control over planets renounces.

what is your suggestion to stop"chinese aggressive drive to build infrastructure in other countries"？
Maybe China should stop all the investment to pakistan？Stop all the CPEC project？

funny logic！

If China don't play out CPEC or silk route sensible then west may win, countries will fear about debt, control and loosing sovereignty to China and west will raise that fear to work against China.

 

[moweike]

Welcome, Just need stop propagating China, this is an opportunity,Let us look at the Western practices ,But don't be like “helping ”Argentina

 

[maximuswarrior]

This is quite interesting if EU can give an alternative without debt burden.

But how?

Give free money?

Or EU companies invest in infrastructure, and get profit from it for decades or a century. This is a more sensible plan.

The EU is at least one decade too late. The white man got greedy. Prosperity and development was only a white man's privilege. China has initiated something so big and suddenly everyone is awake. The results are visible. Roads, massive infrastructural projects, energy projects etc. The white man is pulling hairs.

LOL at the shameless EU begging to Asian countries. They don't have nearly enough resources as China does. OBOR cannot be challenged. Not in the slightest.

 

[+4vsgorillas-Apebane]

Its amazing that the western media have spun Chinese infrastructure projects and expertise into the "debt trap" narrative.

They would prefer to keep poor countries poor and entrenched in the catch 22 of 'having no money to develop because they are not developed enough to make money'.

I would love to see their counterpart to the OBOR initiative. I wonder how much( or rather miniscule) their financial package will be? What can they offer apart from bullshit "consultation"? Fcukers can talk big and act all high and mighty when in reality they are the biggest parasite feeding off the third world since colonial times.

 

[maximuswarrior]

Its amazing that the western media have spun Chinese infrastructure projects and expertise into the "debt trap" narrative.

They would prefer to keep poor countries poor and entrenched in the catch 22 of 'having no money to develop because they are not developed enough to make money'.

I would love to see their counterpart to the OBOR initiative. I wonder how much( or rather miniscule) their financial package will be? What can they offer apart from bullshit "consultation"? Fcukers can talk big and act all high and mighty when in reality they are the biggest parasite feeding off the third world since colonial times.

The truth is that the Western colonizers have finally found a match. They are losing out and are paranoid.

LOL at debt trap accusations by a bunch of colonialists.

They can beg Asia all day long to be on their side. They might find a few fake allies who will milk them all day long. China is the real power. Everyone knows it.