The Chinese government’s charm offensive to win hearts and minds with infrastructure projects and other large-scale investments across the world has been stalled due to the coronavirus pandemic. China’s traditional offerings may not be sought after as much as they used to be. When they attempt to recover from the economic fallout, countries may prioritize cooperating with China not on transport or energy infrastructure but on other sectors. Correspondingly, the Chinese government has not shied away from reinventing its BRI narrative, as it shifts the BRI’s focus to health care and digital connectivity [China’s efforts to win hearts and minds with aid and investment may make all the difference if there’s a cold war with the US]. While some tech giants, notably Huawei, ZTE, Tencent and Alibaba, have already established themselves as major BRI actors the shift towards digital connectivity in particular might provide an important source of revival for the BRI in the post-pandemic world.
Also from a financial point of view, greater engagement by Chinese private companies may prove necessary to keep BRI going. A reckoning was underway in Beijing even prior to the pandemic that scaling back the amount of lending to developing countries was required. According to Rhodium Group, with debt risks in developing countries now a major issue for Chinese lenders, ‘Chinese firms could become new channels of Chinese funding to developing and emerging economies’ [China: End of the Belt and Road?].
Mirela Petkova
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