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China Hordes Construction Contracts on Silk Road

<p class&equals;"MsoNormal" style&equals;"text-align&colon; left&semi;" align&equals;"center">President Xi Jinping has made an aggressive push to bring back the &ldquo&semi;silk road&period;&rdquo&semi; China&rsquo&semi;s Belt and Road Initiative &lpar;BRI&comma;&rpar; which is a series of construction projects to build trade routes connecting Asia and Europe&comma; is expected to cost the countries involved &dollar;1&period;4 Trillian&period;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">China pledged to contribute at least &dollar;124 billion&period; This seems like a significant percentage&comma; but it&rsquo&semi;s a strategic move&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">China will and already is benefitting the most from the construction of the silk road&comma; and in fact are hogging all of it&comma; rather than sharing with the strategic partners in the Silk Road project&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">According to a new study&comma; the construction projects will give China a labor boost&period; The majority of contractors and laborers hired to work on these projects are Chinese&period; Specifically&comma; 89&percnt; of contractors and laborers working on the Silk Road are Chinese&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Only 11&percnt; of workers on the China-funded transport infrastructure projects are from other countries&comma; reports the Center for Strategic and International Studies &lpar;CSIS&comma;&rpar; a Washington-based think-tank&period;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">The construction projects and the BRI itself was sold to the other countries as an investment that would benefit all&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;We should stick together through thick and thin&comma; promote trade and investment liberalization and facilitation and make economic globalization more open&comma; inclusive and balanced so that its benefits are shared by all&comma;&rdquo&semi; said China&rsquo&semi;s president in his keynote speech&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">The CSIS study reveals how disproportionate the labor selection has been for the projects so far and also shows that the project should be referred to as CBRI&comma; since China has the most to gain from this new silk road&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">But&comma; this could ultimately backfire and lead to countries questioning why they should continue to contribute and invest&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Despite official rhetoric about the Belt and Road being open&comma; it is first and foremost a China-centric effort&comma;&rdquo&semi; said Jonathan Hillman&comma; director of the Reconnecting Asia Project at CSIS&period; &ldquo&semi;It is in everyone&rsquo&semi;s interest&comma; including China&rsquo&semi;s&comma; that projects are open to fair competition&period; Unless there are more concrete opportunities to participate in the BRI&comma; more countries will start to ask why they joined the BRI and those that have not joined will not&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Not to mention&comma; in other infrastructure projects in and funded by Europe there was more of an even distribution of contractors hired&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;In contrast to the overwhelming preference shown to Chinese contractors in China-funded projects&comma; data for projects in Eurasia funded by two western multilateral development banks &lpar;MDBs&rpar; &mdash&semi; the World Bank and the Asian Development Bank &mdash&semi; shows a more even distribution of awards&period; Among MDB-funded transport infrastructure projects&comma; 41 percent of contractors were from countries in which the infrastructure was being built&comma; while 29 percent were Chinese and 30 percent were from third countries&comma; according to the CSIS study&comma; which covered 178 projects between 2006 and now&comma;&rdquo&semi; writes the <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Financial Times&period;<&sol;em> &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">China desperately tried to sell the idea that the BRI would be a &ldquo&semi;group effort&rdquo&semi; that would pay off for all countries involved&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">The BRI could put China at a massive advantage over other world powers including the U&period;S&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Xi is offering a lot of money and infrastructure to a lot of recipient countries who have a pressing need for their economies to be modernized&comma;&rdquo&semi; said Sourabh Gupta&comma; a senior fellow at the Institute for China-America studies to&nbsp&semi;<em style&equals;"mso-bidi-font-style&colon; normal&semi;">Fox News<&sol;em>&period; &ldquo&semi;There are real political&comma; economic and strategic goals at stake&period; It is China effectively applying soft power in a very visible way&period; It wants to become what the United States has been until now &ndash&semi; the leader of the world economy&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong style&equals;"mso-bidi-font-weight&colon; normal&semi;">Author&rsquo&semi;s note&colon; <&sol;strong>This shows that China can&&num;8217&semi;t resist keeping all of the work to itself&period; A more sophisticated and fair leader would make sure the work was divided among the participants&period;&nbsp&semi;Soon&comma; the countries involved are going to feel like President Xi was just a sleazy salesman&period; This proves this is less about fair trade and more about regional dominance&period;<&sol;p>&NewLine;

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