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China’s Belt and Road Initiative criticised for poor standards and ‘wasteful’ spending

  • Asia Society report warns that Chinese officials’ ‘laissez-faire’ attitudes mean projects are not being properly vetted in Southeast Asia
  • Study also warns that villagers in Laos are being evicted from their homes without proper compensation to make way for a rail link

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Construction work on the China-Laos railway. The US$1.78 billion cost to Laos is equivalent to 12 per cent of its GDP. Photo: Bloomberg

China’s massive infrastructure spending in Southeast Asian nations under the Belt and Road Initiative has run into a series of problems including substandard work and money wasted on unprofitable projects, a new report has warned.

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The Belt and Road Initiative, launched by Chinese President Xi Jinping in 2013, encompasses an estimated US$1 trillion of projects – many of which are road and rail links – in more than 125 countries.

But the initiative has been overshadowed by controversy, including persistent warnings that poorer countries will be burdened with unsustainable debts and claims that Beijing is using it to extend its geopolitical influence – claims the Chinese government has denied.

The report by the Asia Society, a non-profit educational organisation, suggested a series of measures to improve the initiative, including setting up a fund to enable less-developed countries to mitigate risks and launching proper environmental assessments.

Chinese President Xi Jinping at the opening ceremony for the second Belt and Road Forum in Beijing in April. Photo: Reuters
Chinese President Xi Jinping at the opening ceremony for the second Belt and Road Forum in Beijing in April. Photo: Reuters
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The study, released on Wednesday, said that in Southeast Asia Chinese officials had adopted a “laissez-faire” attitude towards enforcing standards, often citing the principles of “non-interference” to distance themselves from unpopular projects.

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