China’s gains power through Belt & Road investments, but resistance is growing

As of today, you will find the NEWS of last week at the end of the Newsletter!

 

China’s gains power through Belt & Road investments, but resistance is growing

Today’s TextileFuture Newsletter shows the hegemonic power strategy of China,  in facts and figures, as well as the growing resistance and the difficulties of states to get out of the financial engagements. It is based upon an enlightening feature of the New York Times.

China has created a modern-day counterpart to the Marshall Plan, the U.S. reconstruction programme after World War II that laid the foundation for America’s enduring military and diplomatic alliances. The New York Times shows a growing negative resistance of countries entering into a closer relationship with China.

Seven dams generate almost half of Cambodia’s electricity. China built and paid for all of them.

This one, near Cambodia’s southern coast, is about 360 feet tall. It is the fourth-largest by power output in the country.

Kamchay Dam, Cambodia

Sri Lanka borrowed more than USD 1 billion from China for this strategic deepwater port, but could not repay the money. The port is now controlled by China, which is leasing it for the next 99 years.

Port of Hambantota, Sri Lanka

South Africa turned to China for USD 1.5 billion for a coal-fired power plant. It is one of at least 63 such plants financed by China around the world, which collectively pollute more than Spain.

Medupi Power Station, South Africa

Zambia tapped China for USD 94 million to build a soccer stadium of over 50,000 seats. These are among the more than 600 projects around the world that China has financed to win new friends and develop new markets.

Heroes National Stadium, Zambia

 

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The World built by China

By guest authors Derek Watkins, K.K. Rebecca Lai and Keith Bradsher from New York Times

China envisions a vast global network of trade, investment and infrastructure that will reshape financial and geopolitical ties — and bring the rest of the world closer to Beijing.

It is a modern-day version of the Marshall Plan, America’s reconstruction effort after World War II, which created a foundation for enduring military and diplomatic alliances. China’s strategy is bolder, more expensive and far riskier.

Its money does not necessarily come with the usual rules. And the cost, for China and its borrowers alike, can sometimes be too high.

We examined nearly 600 projects that China helped finance in the last decade, through billions of dollars in grants, loans and investments. Taken together, they show the scope and motivation of China’s strategy.

41 pipelines and other oil and gas infrastructure help China secure valuable resources.

203 bridges, roads and railways create new ways for China to move its goods around the world.

 

199 power plants — for nuclear, natural gas, coal and renewables — give China new markets for its construction and equipment companies.

We found 112 countries where China has financed projects. While most fall under its infrastructure plan known as the Belt and Road Initiative, Beijing has pushed beyond those boundaries.

After years of honing its construction skills at home, China is now deploying them abroad, including a series of hydroelectric dams.

 

 

 

Geopolitical Goals

China needs friends. And, literal bridges can help build figurative ones.

Large ports in Pakistan, Sri Lanka and Malaysia — three countries along a major oil and commerce route from the Mideast and Africa — could someday double as naval logistics hubs.

 

 

Beijing is heavily focused on its neighbours, lending them money for extensive road-building projects. Pakistan is running out of money to repay the loans, part of a broader pattern of what critics call China’s “debt trap” diplomacy.

Different Standards

China has a different view when it comes to labour and environmental strictures. To staff overseas projects, Chinese companies have flown in their own workers by the thousands, drawing complaints that they are doing little to create local jobs. Safety standards have been uneven.

And, Beijing continues to export polluting technologies like coal-fired power plants, even as such projects have become unpopular in China.

A 945-megawatt Chinese-built coal-fired power plant near Sihanoukville, Cambodia

Risky moves

Western governments and multinationals generally steer clear of politically volatile countries. The Chinese government has been less skittish, lending heavily to nations like Venezuela, Nigeria and Zimbabwe.

But China’s lending is not usually largess. Countries that run into financial trouble must renegotiate their loans, putting them deeper into debt. Sometimes projects are left in limbo.

Ecuador spent over USD 1 billion to prepare a site for a USD 12 billion Chinese refinery that was supposed to be finished in 2013. It is stalled.

Methodology

This analysis focused on projects valued at over USD 25 million that were partly or completely funded by a Chinese entity in the last 10 years. Projects that rehabilitate or expand existing infrastructure are included, in addition to new construction projects.

Data sources

In addition to our own reporting, we compiled information on these projects from the following sources:

Satellite images from Bing and Google Earth. List of One Belt One Road countries from the State Information Center in Beijing. Ocean traffic data from University College London’s Energy Institute and Kiln Digital. Road shapes from the Center for Strategic and International Studies.

Credits

Additional reporting by Karoline Kan, Ailin Tang and Tiffany May from New York Times.

www.nytimes.com

 

 

 

 

 

 

 

 

Newsletter of last week:

Cracking the Chinese Consumer Code

Here is the Review of last week’s NEWS. For your convenience just click on the feature for fast access

Automotives

Continental to build the Sion’s Motor

Awards

MSYG wins Leadership in Innovation Award from the North Carolina Manufacturing Extension Partnership

Coats wins ICAEW Corporate Development Award

Aleph honoured with Future Textile Award once more!

Outstanding corporate culture honoured

Carpet Shades

Radifloor® Solid: polyamide in 112 colour shades for carpet tiles and fitted carpet

Colours

Colour Meaning, Symbolism, and Psychology: What do different Colours mean

Companies

Victoria’s Secret: Sex is not selling

Nike’s huge new flagship looks like the future of retail

Walmart raises earnings forecast ahead of holidays but shares sink

Global Fashion Group’s 3Q results and seems preparing an IPO

Cotton

Texas Cotton harvest slow due to moist conditions

USDA – Indonesia Cotton and Products Update November 2018

Data

Global growth is slowing amid rising trade and financial risks, says OECD

NRF survey says more than 164 million U.S. consumers plan to shop over five-day Thanksgiving weekend

Swiss exports in October set new record

Denim

Monforts technology behind denim innovations in London

Events

FULGAR participates in Exhibition “Textile Evolution – Made in Italy 4.0”

Groz-Beckert welcomed over 4000 visitors to ITMA Asia

INTIMASIA v3.0 Delhi is set to be the largest unity of intimate wear brand and trade show of the country

“Design in the Age of Big Data” – an exhibition about the design of intelligent products

Celebration of Composite Materials at the 11th JEC Asia

Catch up with important textile events of ITA The institute of Textile Technology in Aachen, Germany

Holiday Shopping

Young American adults most likely to spend more this holiday season

IPO

Levi Strauss plans IPO that values company at up to USD 5 billion, sources say

3D Printing

Researchers 3D Print Ceramics without time-consuming and complex Sintering Phase

BMW Surpasses One Million 3D Printed Automotive Components

Virginia Tech Researchers 3D Print Kapton using direct Ink Writing

Partnership

Breaking News – Oerlikon deepens partnership with Airbus: Oerlikon Balzers receives Qualified Supplier status

Personalities

Pekka Ojanpää to start as President & CEO of Suominen on December 1, 2018

Pekka Ojanpää, upcoming President & CEO of Suominen, dies in aviation accident

J Crew’s CEO James Brett steps down abruptly

New Products

World’s first ski jacket with HYDRO_BOT technology – eliminates sweat at the touch of a button

“Datacenter in a box” is the new powerful, flexible and secure IT infrastructure solution for the textile industry of the future

Stores

Chanel’s new Flagship Store will sell limited-Edition Bags, Fragrances, and Watches

Sustainability

Fashion Industry Works Towards “Closing the Loop” in a Circular Economy

Trade

Panama files appeal against WTO compliance panel ruling in dispute with Colombia over textile import measures

WTO report shows sharp rise in trade-restrictive measures from G20 economies

Webinars

The Right Price at the Right Time (November 27, 2018)

TE-Webinar on Organic Textile Labelling in the U.S. (December 6, 2018)

Worth Reading

The ICAC’s new, free report on production and trade subsidies in cotton