Washington: Expressing concern over recent Chinese actions taken out of step with international norms, the Pentagon has said One Belt and One Road (OBOR) investments could create potential military advantages for China, should it require access to selected foreign ports to pre-position the necessary logistics support to sustain naval deployments.
In a report titled “Assessment on United States Defence Implications of China’s Expanding Global Access”, the report states that Department of Defence is concerned by the actions China’s government has taken that are out of step with international norms, diminishes countries’ sovereignty or undermines the security of the United States, its allies or partners.
The Pentagon report identified 17 cases in which Chinese investment and project financing bypassed regular market mechanisms and has resulted in negative economic effects for the host country. Most of China’s construction contracts, and some of its investments, have occurred under the OBOR label since the initiative was announced in 2013, the report said.
Although many of China’s generous investment financing offers benefit their host nations, they often come with strings attached.
Pakistan announced a review of Chinese-financed projects associated with the USD 62 bn China-Pakistan Economic Corridor in September 2018. An advisor to Prime Minister Imran Khan told reporters the previous government “gave away a lot” to China and argued for renegotiation.
The Maldives’ finance minister stated in November 2018 that China is building infrastructure projects in the country at significantly higher prices than previously agreed, the Pentagon said.
China’s announcement of USD 60 bn in additional aid and loans for Africa occurred despite the International Monetary Fund’s early 2018 warning that sub-Saharan African nations are at a growing risk of debt distress. The report alleged that China has also employed economic incentives or economic coercion to achieve specific political objectives.
This has affected a wide range of countries. For instance in 2004, after China pledged USD 122 million in assistance to Dominica, Dominica cut official ties with Taiwan.
“In 2010, China reduced salmon imports from Norway and suspended diplomatic relations and trade discussions, after Chinese dissident Liu Xiaobo won the 2010 Nobel Peace Prize,” the Pentagon said. (PTI)
