Belt and Road faces some risks, including its will pass through the countries
which is political instability risk. Infrastructure projects such as power
stations, highways and railways rely on continuous government support. However,
many countries in one Belt and Road area are frequent political unrest, it has
impact on the policy implementation of the project.
the government of Sri Lanka, has pause a port project worth 1 billion US
dollars, which has been approved by the previous government. The project
invoked all kinds of misconduct, including lack of appropriate licenses and
approvals. The project has been shelved for a year, but now it began again.
Chinese developers estimate that a shutdown will cost more than $380000 a day.
These examples send a warning to Chinese investors that they shouldn’t ignore
the political risk. Although it cannot be completely eliminated, it is worthy
of attention and preparation.
Secondly, many Chinese companies engaged in business abroad
have branded themselves, as the OBOR, in order to get the support and Chinese
government preferential access, but are they will really help The Belt and Road
initiative is uncertain. With the Chinese enterprises to expand their
activities in countries along the trade routes, they are doing more harm to
Chinese image, than promote OBOR. Although it is encouraging to see a high
level of support from Chinese enterprise, but unfortunately, not all of the
leading domestic enterprises initiative and support to Chinese OBOR project as
restricted by their language barriers, cultural and traditional. Country corruption,
local environment’ damage and cultural and political unregard are all potential
risks, which will destroy China’s efforts to the success and promise to achieve
large companies based on mutual respect and cooperation.
Of course, The OBOR China has
enjoyed a large domestic population of support. This is not only because the
President Xi have significantly higher levels of public support, but also due
to OBOR Initiative linked to the history of trade routes, the Silk Road, which
is the golden age of the Tang Dynasty
China, responsible for more than 50% of world production and. This is also the
revival of China, which is said about the Chinese dream.
However, this policy is not
only a strategy, China use its economic strenght to increase its influence
beyond Asia, a part of this move is China domestic reform and economic growth,
and it is this, Chinese need to have a way with people, a citizen based on
national pride you can see the sense of support offered to maintain the welfare
level of enthusiasm.
Last year, the China
Development Bank loans total to $160 dollars in national one belt one road
project. The president Xi also declare China’s commitment to a $900 billion
plan, including the port and railway construction funds in Africa and Asia.
However, those countries are low-income economies, so profit returns are a slow
process. The Chinese’ people question, in fact, asked who paid the bill, and if
China is able to spend so much on the projects why don’t the government do it
to the people in China and help the poverty. China’s high economic prosperity
created a huge inequality from the end of the 80s to the beginning of the
century, and many region still live below the poverty. China’s internal social
unrest and protests are becoming more frequent. Their discontent will aggravate
the Chinese if they do not benefit themselves or even lose these foreign