It is a fact that no other nations profited from modern-day globalization as China did, they succeeded to market all their domestic products and services worldwide and their economy propelled to second spot passing huge players from Europe and Asia. The emergence of China as a global powerhouse has impacted the world politics as well, Chinese pole development fueled the formation of far-right governments in the United States and while some European countries demanding their past grandeur China took a remarkable plot; In 2013 Chinese President Xi Jinping announced $3 billion Mega Infrastructure Project to buckle up the Belt and Road Initiative to connect Europe and China, by this project a large capital flow was planned to happened between China and other 140 nations. As the nations agreed with the Chinese scheme to connect strategically important locations their economy was distressed, this circumstance received special attention from Beijing. The economists from China formulated “Debt Traps” or “Chinese Marshall Plan” for this demand. In this crucial position in 2020 as COVID19 quaked the world economy and while Chinese hatred fueling by right-wing politics across the globe, how are these uncertainties going to affect the Mega Project? Will China be the new savior of globalization?
The seven years of Belt and Road Initiative (BRI) project, which made a huge embarrassment to the western world by its massive construction and engineering, many big structures were raised like; Karakoram Highway in Pakistan, railway lines in Kenya and Southeast Asia, ports in Oman and South Asia power projects in Pakistan, these are some of the cases whereas a number of projects are near to its completion. A lot of deals are recently placed, but the whole of these held on a pause by the outbreak of COVID19. The world economy collapsed into lockdown and consumption rate showed a sharp decline, Chinese economic condition also worsened that was already beaten by the trade war with the US. The Chinese employees are stuck due to the travel ban in the Chinese New Year and workers on the sites encountered threat-of-hate because of the outbreak commenced in China. The hatred of China is further expanded to the hate of globalization, Chinese products started to decline from the market and the future of the situation is also doubted. Nations like India and Australia were the two biggest markets of Chinese products, where they already started their individual campaigns on domestic production. The United States and Europe began to encourage parallel production in countries like Indonesia and Vietnam, the Hong Kong tensions appear like a pimple on hunchback while relating to the current state.
The majority of countries who have Belt and Road Initiative (BRI) contracts with China have a poor economic circumstance. Economists point out they are in a pit that is hard to escape even though they prefer to grow as a market of Chinese products and services. Their debts have tremendous loan payments which are already becoming a migraine for Pakistan and Ghana. Beijing started calling for reviewing terms and conditions for repayment, for the $145 billion deposited by China in Africa almost $8 billion has to be paid as a return in 2020 is fretting Djibouti. For one small nation in Africa like Djibouti, it is affecting the entire economic product. China already built a military base in this strategically important country, they all hope Xi will announce relief as the virus arose from china. The South Asian picture is almost similar, in Sri Lanka – China has a 99 Year leased port with huge dues of repayment, Sri Lanka also forced to borrow $500 million to overcome the budget shortfall. This is an interesting fact that these countries are getting more tied into Beijing, as many experts believe this is the first sign of forced globalization. The United States also got on track by announcing the IDF counter to the Belt and Road Initiative (BRI) plan with an opening of $900 million.
Even though the western world is concerned about the future of globalization, China is further working to globalize themself. China recently announced a Health Silk Route plan in the COVID 19 circumstances, they offered $2 billion to fight against COVID19. A flow of medical equipment arrived already and distributed with WHO. China considers this as an opportunity when the US withdraws from the global floor, their movement to globalize Yuan instead of Dollar is getting on the road, Yuan became a familiar currency in countries like Pakistan, Mandarin is also getting global recognition. Different deals are forming with countries like Myanmar, Nigeria, and Turkey; so in summary, if you have any doubts about the future of globalization China has the answer.