The “New Silk Road”: ports, railways – and a military base

Ten years ago, China launched its “Silk Road” initiative. What projects are there, how successful are they – and what criticism is there about them?

Ten years after the start of the New Silk Road initiative, the project is being praised in China as a contribution to the economic development of many countries. At the same time, the initiative is being sharply criticized internationally because it drives poorer countries into dependence on the People’s Republic. A look at five important projects:

Southeast Asia connection via Laos

According to Beijing, ten million passengers have already used the high-speed connection between the Chinese city of Kunming and the Laotian capital Vientiane after the first train went into operation in 2021.

The route, which is over 1,000 kilometers long, cost the equivalent of around 5.7 billion euros; Laos took out large loans from China to finance it. Both sides praised the project’s great benefits for both countries. Beijing said the new train would bring “friendship, happiness and new opportunities.”

Laotian Prime Minister Sonexay Siphandone told China’s state-run Global Times newspaper on Sunday that the railway would benefit “not only Laos but also neighboring countries.” Critics believe Laos will have trouble paying back its debts.

Access to the Indian Ocean through Pakistan

China and Pakistan have already invested several dozen billion euros in the CPEC (China-Pakistan Economic Corridor), which is intended to connect China with the port city of Gwadar on the Arabian Sea.

It runs more than 2,000 kilometers from China’s westernmost region of Xinjiang to Balochistan. A network of motorways and train routes is being built along the entire route, and there are also enormous investments in energy supply.

This gave China access to the Indian Ocean. China-focused think tank MERICS calls CPEC an ambitious financial venture for Pakistan.

Naval base in Djibouti

After East African Djibouti became part of the “New Silk Road,” Beijing invested heavily in the small country. The main project there is a large Chinese military base costing around 560 million euros, which is strategically located between the Red Sea and the Gulf of Aden.

According to Beijing, the base is intended to supply naval ships and help in the fight against pirates in the region. Humanitarian missions and the protection of Chinese merchant ships are also planned.

However, there are concerns from the West particularly because of the proximity to a US military base. It is feared that China could use its position to spy. Djibouti’s President, Ismail Omar Guelleh, has already rejected Washington’s “constant” complaints about the project.

Greek port as a gateway to the EU

In 2016, China caused a stir in Europe when a Chinese state-owned company acquired a majority stake in the port of Piraeus. Two years later, Greece officially became part of the “New Silk Road” and the port became an important junction connecting Asia and Europe, as both countries announced at the time.

As recently as August this year, China’s state news agency Xinhua said that Chinese investment had breathed new life into the previously ailing port. Opponents of the project fear that it will have too strong an influence on economically weak Greece, a member of the EU and the euro zone. China denies this.

Italy before retreat

In 2019, during a state visit by Chinese party and state leader Xi Jinping, Italy announced that it wanted to become part of the “New Silk Road”, shocking its Western allies. It was the first time a G7 country joined the infrastructure project.

However, the contracts signed have so far done little to reduce Italy’s trade deficit. At the same time, there is great concern in the country about too much Chinese influence. Italy is therefore apparently considering withdrawing from the project – the original declaration of intent expires in March next year.

Italian Prime Minister Giorgia Meloni said last month that a decision had not yet been made. Foreign Minister Antonio Tajani was much clearer in saying that the Belt and Road Initiative “did not produce the results we had hoped for.”