The development of the “One Belt One Road” project has led to Black Sea peas and flax displacing Canadian products from the Chinese market, The Western Producer reported on April 25.
China began the project in 2013, promising to revive the ancient Silk Road and expand trade with Europe, Asia and Africa. Canadian agricultural analysts say the Belt and Road Initiative threatens Canadian exports as one of Canada’s biggest buyers creates new trade routes.
The One Belt One Road project has been plagued by many difficulties and delays. “There is a huge gap between what Beijing promises and what it has already done.”says a report by Australian think tank Lowy Institute.
In Southeast Asia, the gap between China’s commitments and what is actually implemented is more than 50 billion dollars (4.6 trillion rubles). At the same time, Chinese investments contribute significantly to the development of the region. 29.63 billion dollars (2.75 trillion rubles) were spent.
“China is involved in 24 of the region’s 34 mega infrastructure projects worth $1 billion (92 billion rubles) or more. Without a doubt, it is the largest participant in infrastructure financing.”, says the report. The list includes 14 energy projects, seven railways, an airport, a bridge and a port. Many other signed projects have been canceled, reduced or will be stopped. The number of new projects is decreasing.
“We seem to be losing market share in many areas. “I partly attribute that to what the Belt and Road Initiative has achieved so far.”said Marlene Bursch, managing partner of Mercantile Consulting Venture. “The project allows them to trade on different routes.”“added the expert.
Trade gains could be greater if China fulfilled all its commitments to the project. The Lowy Institute report attributes the lack of progress to the COVID-19 pandemic.
In 2020, China’s Foreign Ministry said 20% of New Silk Road projects were “severely affected” by the pandemic.
China mainly implements infrastructure projects, which often suffer delays. “China’s penchant for megaprojects increases the risk. By some estimates, nine out of 10 megaprojects exceed their allocated time and budget.”says the report.
However, China appears to be learning from its mistakes, moving from megaprojects to smaller ones and addressing some other problems, according to the report.
Source: Rossa Primavera
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