The Philippines has decided to withdraw from a number of projects with China’s Belt and Road Initiative (BRI). Asia Times reports:
In a major development with geopolitical implications, the Philippine Department of Transportation has announced the full termination of a series of big-ticket infrastructure projects with China in favor of Japanese and Western rivals.
Richard Heydarian. “Why the Philippines is exiting the Belt and Road.” Asia Times. November 2, 2023.
Belt-and-Road is China’s development progam to rival Western institutions such as the World Bank. The program has been succesful at drawing much of the developing world closer into China’s orbit, despite bad press about BRI being “debt-trap diplomacy”. We recently wrote about Nepal’s overly expensive airport built under BRI.
While there have been escalating tensions between China and Philippines over confrontations in the South China Sea, the decision to back off from BRI maybe largely economic. The Philippine Star quotes Philippine Senator Sherwin Gatchalian:
“We should study the ODA based on the economy, interest rates and grace period. These are the important aspects. Geopolitics, that’s just the third. Are there greater benefits when it comes to economic activities?” Gatchalian said.
Cecille Suerte Felipe. “6 other Philippines-China projects delayed; Senate reviewing details”. The Philippine Star. October 30, 2023.
The Philippines decision to not participate shoud send a strong signal to Beijing that BRI projects have to be economically competitive and that its bullying in the South China Sea has consequences.
As the receipts come in from various projects, developing countries are more aware of the costs of BRI investments. And as the general character of Chinese Communist aggression is more clearly exposed, these countries can evaluate the political costs including the potential of being trapped under Chinese dominion by debt, and by a growing hegemony.
