Where the rubber meets the ‘Belt and Road’ – German ambassador answers the big questions
Michael Clauss outlines Germany’s concerns about Beijing’s trade and infrastructure initiative
Will Germany send delegates to the Belt and Road summit? What outcomes do you expect from the forum?
Since it is not possible for Chancellor [Angela] Merkel to attend personally, she will be represented by Federal Minister for Economics and Energy Brigitte Zypries. Many German business leaders will also attend.
The regions covered by the initiative have a lot of potential, but two-thirds of the countries are ranked below investment grade. That means it is difficult for these countries to attract investment for infrastructure, which in turn would be important in order to strengthen economic development and political stability. In that respect the initiative could make a significant contribution to alleviate the root causes of migration. That’s obviously very important to us, because Germany is particularly affected by the refugee crisis. That is one of the reasons why Germany fully supports the belt and road initiative, particularly its potential in the areas of connectivity and free trade. The idea was originated by China. We should now start to develop it into a joint project, with co-ownership for all participants.
Why do some countries seem hesitant to fully embrace the belt and road initiative? What should China do to improve the participation of partner countries?
China will extend its geopolitical influence with the progress of the belt and road initiative. There are concerns among China’s geopolitical rivals, but also among China’s immediate neighbours, who fear that they may become increasingly dependent on China. Another challenge may be funding: private Chinese companies I speak to are somewhat reluctant to invest in countries which are economically or politically unstable, while a number of state-owned enterprises investing overseas are highly leveraged.