On a mountaintop a few miles north of the bustling streets of Harare,
Zimbabwe, a curving, modern complex is beginning to take shape. This
building, once completed, will be the home of the African country’s
parliament, and the centerpiece of a new section of the capital city.
Aside from the striking design, there’s another unique twist to this
development — the entire $140 million project is a gift from Beijing. At
first glance, gifting a country a new parliament building may seem
extravagant, but the project is a tiny portion of China’s $270 billion
in “diplomacy spending” since 2000.
AidData, a research lab at the W&M Global Research Institute, has compiled a massive database
of Chinese-backed projects spanning from 2000–2017. In aggregate, it
creates a comprehensive look at China’s efforts to grow its influence in
countries around the world, particularly in Africa and South Asia.
Beijing has ramped up the volume and sophistication of
its public diplomacy overtures, […] but infrastructure as a part of its
financial diplomacy dwarfs Beijing’s other public diplomacy tools.
– Samantha Custer, Director of Policy Analysis, AidData
Below, we’ll look at three diplomacy spending hotspots around the
world, and learn about key Chinese-funded megaprojects, from power
plants to railway systems.
1. Pakistan
In 2015, Chinese President Xi Jingping visited Islamabad to
inaugurate the China-Pakistan Economic Corridor (CPEC), kicking off a
$46 billion investment that has transformed Pakistan’s transportation
system and power grid. CPEC is designed to cement the strategic
relationship between the two countries, and is a portion of China’s
massive One Belt, One Road (OBOR) initiative.
One of the largest projects financed by China was the Karachi Nuclear
Power K2/K3 project. This massive power generation project is primarily
bankrolled by China’s state-owned Exim Bank which has kicked in over
$6.6 billion over three phases of payments.
Billions of dollars in Chinese capital has also funded everything
from highway construction to renewable energy projects across Pakistan.
Pakistan’s youth unemployment rate sits as high as 40%, so jobs created
by new infrastructure investments are a welcome prospect. In 2014,
Pakistan had the highest public approval rating of China in the world,
with nearly 80% respondents holding a favorable view of China.
2. Ethiopia
Ethiopia has seen a number of changes within its borders thanks to
Chinese financing. This is particularly evident in its capital, Addis
Ababa, where a slew of transportation projects — from new ring roads to
Sub-Saharan Africa’s first metro system — transformed the city.
One of the most striking symbols of Chinese influence in Addis Ababa is the futuristic African Union (AU) headquarters. The $200 million complex was gifted to the city by Beijing in 2012.
Though Ethiopia is a clear example of Chinese investment transforming
a country’s infrastructure, a number of other African nations have
experienced a similar influx of money from Beijing. This financing
pipeline has increased dramatically in recent years.
3. Sri Lanka
In the wake of political turmoil, Sri Lanka is increasingly looking
to China for loans. From 2000 to 2017, over $12 billion in loans and
grants have poured into the deeply-indebted country.
Perhaps the most contentious symbol of the relationship between the
two countries is a port on the south coast of the island nation, at a
strategic point along one of the world’s busiest shipping lanes. The
Hambantota Port project — which was completed in 2011 — followed a now
familiar path. Eschewing an open bidding process, Beijing’s government
financed the project and hired a state-owned firm to construct the port,
primarily using Chinese workers.
By 2017, Sri Lanka’s government was burdened by debt the previous
administration had taken on. After months of negotiations, the port was
handed over with the land around it leased to China for 99 years. This
handover was a strategic victory for China, which now has a shipping
foothold within close proximity of its regional rival, India.
John Adams said infamously that a way to subjugate a country is through either the sword or debt. China has chosen the latter.
– Brahma Chellaney
Playing the Long Game
Africa’s economic rise will likely be a major contributor to global
growth in coming years. Already, six of the 10 fastest growing economies
in the world are located in Africa. China is also the top trading
partner on the continent, with the United States sitting in third place.
OBOR spending has also earned China plenty of influence in the rest
of Asia as well. If the ambitious megaproject continues along its
current trajectory, China will be the central player in a more
prosperous, interconnected Asi
