The Philippines has decided to withdraw from a number of projects with China’s Belt and Road Initiative. Asia Times reports (November 2, 2023):
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.
The 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.
Although there have been escalating tensions between China and Philippines over confrontations in the South China Sea, the decision to back off from BRI may be largely economic. The Philippine Star quotes Philippine Senator Sherwin Gatchalian: “We should study the ODA [official development assistance] 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?”
The decision of the Philippines to reconsider its participation should 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 becoming 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.
