Home  /  Daily Current Affairs  /  30-10-2024 / Brazil Decides Not to Join China’s Belt and Road Initiative

Brazil Decides Not to Join China’s Belt and Road Initiative

Last updated on October 30th, 2024 Posted on October 30, 2024 by NEXT IAS Current Affairs Team  559

Syllabus: GS2/IR

Context

  • Brazil recently decided against joining China’s multi-billion-dollar Belt and Road Initiative (BRI). 

About

  • This marks a major setback to China’s BRI after India’s refusal to endorse the mega project. 
  • Brazil has become the second country after India in the BRICS bloc to deny support.
  • Brazil wants to take the relationship with China to a new level, without having to sign an accession contract.
    • Joining BRI may fail to bring any tangible benefits for Brazil in the short term but could also make relations with the U.S.A more difficult.
BRICS 
– BRICS is an acronym that refers to a group of five major emerging national economies: Brazil, Russia, India, China, and South Africa. 
1. Later, Egypt, Ethiopia, Iran, and the United Arab Emirates were admitted as member states.
– The term was originally coined by economist Jim O’Neill in 2001.
– Summits:  The governments of the BRICS states have met annually at formal summits since 2009.
– BRICS countries come together to deliberate on important issues under the three pillars of:
1. political and security, 
2. economic and financial and cultural and
3. people-to-people exchanges.
– New Development Bank: Formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states. 

Belt and Road Initiative (BRI)

  • China proposed the BRI in 2013 with the purpose of restoring the ancient Silk Route.
    • The initiative aims to connect Asia with Europe and Africa, through a network of railways, highways, ports, airports, and other infrastructure projects with the intent to promote trade, investment, and economic growth in participating countries. 
  • China has presented the BRI as an open arrangement in which all countries are welcome to participate.
    • So far, China has signed BRI cooperation agreements with more than 150 countries and 30 international organisations.
  • The BRI comprises two main components: The Silk Road Economic Belt and the 21st century Maritime Silk Road.
    • The Silk Road Economic Belt focuses on improving connectivity and cooperation between China and countries in Central Asia, Europe, and West Asia, while the 21st century Maritime Silk Road focuses on strengthening maritime cooperation between China and countries in Southeast Asia, South Asia, and Africa.
  • The main portion of the required infrastructure build is expected to continue until 2035.
Ancient Silk Road
– The Silk Road was a network of trade routes connecting China and the Far East with the Middle East and Europe. 
– Silk was transported from east to west throughout the year except for harsh winters which brought back gold and silver coins and other precious goods in exchange.
– It was established when the Han Dynasty in China officially opened trade with the West in 130 B.C., the Silk Road routes remained in use until A.D. 1453, until the Ottoman Empire boycotted trade with China and closed them. Ancient Silk Road

How does India view the BRI?

  • Sovereignty Issues: The China–Pakistan Economic Corridor (CPEC) passes through the Pakistan-occupied Kashmir (PoK).
    • India views this as a violation of its territorial integrity.
  • Chinese Presence in IOR: The importance of the Indian Ocean for China has increased significantly due to its expanding trade, energy transport and investments.
    • It started expanding its footprints in India’s neighbourhood through investments in various ports in Bangladesh, Pakistan, Sri Lanka and Myanmar. 
    • As commercial ports could be easily converted into military use, these developments have troubled Indian policymakers.
  • Strained India- China Relations: Many negative developments in broader India-China ties (trade deficit, border tensions, etc.) have also affected India’s perceptions of the BRI.
  • Debt Diplomacy: The BRI structure smacks of Chinese  neo-colonialism. The projects is pushing smaller countries on the road into a crushing debt cycle, destroy the ecology and disrupt local communities.
    • The debt traps are undermining their sovereignty and creating dependency on China.

Conclusion

  • India was the first country to voice reservations and stood steadfast in its opposition to BRI.
  • India is also vocal about its criticism of BRI projects stating they should be based on universally recognised international norms, good governance, and the rule of law and follow principles of openness, transparency and financial sustainability.
  • The BRI can also be seen as China using its infrastructural, intellectual and financial advantage to forge stronger political ties with certain capital-importing countries. 
  • India is aware of these realities and also keen to determine its geopolitical interests in the Indian Ocean region. 

Source: TH

 
Previous article India – Spain Bilateral Relations
Next article India Remains Highly Dependent on Imports of Critical Minerals