Chinese President Xi Jinping sought Friday to ease growing concerns about his ambitious Belt and Road Initiative, vowing to prevent debt risks and saying his global infrastructure project "is not an exclusive club".

Xi made his remarks at a summit on his signature foreign policy, which aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects.

The initiative offers to bring much-needed modern infrastructure to developing countries, but critics say it mainly favours Chinese companies while saddling nations with debt and causing environmental damage.

China has rejected accusations that Belt and Road is a "debt trap" and a geopolitical tool for Beijing's ambitions of becoming a global superpower.

"The Belt and Road is not an exclusive club," Xi said at the gathering of 37 world leaders.

In a nod to the concerns over loans, Xi said: "we also need to ensure the commercial and fiscal sustainability of all projects so that they will achieve the intended goals as planned."

Finance Minister Liu Kun said Thursday that China would present the forum a debt sustainability framework to "prevent debt risks" -- a move welcomed by International Monetary Fund chief Christine Lagarde.

The opacity of deals between Chinese companies and local governments has also raised alarm.

"Everything should be done in a transparent way and we should have zero tolerance for corruption," Xi said.

China will also promote "green" development, he said, amid warnings that some of the massive projects are causing environmental damage in Asia.

Debt troubles

Leaders from 37 countries have come to Beijing for the three-day forum, with officials from scores of other nations in attendance.&nbsp;

Russian President Vladimir Putin, Pakistani Prime Minister Imran Khan and Italian Prime Minister Giuseppe Conte, whose country became the first G7 member to sign up to Belt and Road, are among the headliners.

But EU powers Germany and France are sending ministers instead.&nbsp; 
The United States, which sent a senior White House official to the first BRI summit in 2017, has not dispatched any officials from Washington.

Amid tensions over trade and other diplomatic spats, Washington has dismissed BRI as a "vanity project" and rebuked Rome for signing up to the scheme.

Since Xi launched Belt and Road in 2013, China has invested $90 billion in projects while banks have provided upwards of $300 billion in loans, according to Chinese officials.

But examples of debt trouble abound.

Sri Lanka turned over a deep-sea port to China for 99 years after it was unable to repay loans. Pakistan needs an international bailout.

And Montenegro has had to make difficult choices after taking on crushing Chinese debt to pay a Chinese company to build a new highway.

Pushing back has proved a successful election issue in Asia, including in Sri Lanka, the Maldives and Malaysia, as the trademark infrastructure push is used to whip up fears about eroding sovereignty.

The new Malaysian prime minister cancelled some planned works and renegotiated a rail project cutting 30 per cent off the price tag.&nbsp; 
&nbsp;

Chinese President Xi Jinping sought Friday to ease growing concerns about his ambitious Belt and Road Initiative, vowing to prevent debt risks and saying his global infrastructure project "is not an exclusive club".

Chinese President Xi Jinping sought Friday to ease growing concerns about his ambitious Belt and Road Initiative, vowing to prevent debt risks and saying his global infrastructure project "is not an exclusive club". Xi made his remarks at a summit on his signature foreign policy, which aims to reinvent the ancient Silk Road to connect Asia to Europe and Africa through massive investments in maritime, road and rail projects. The initiative offers to bring much-needed modern infrastructure to developing countries, but critics say it mainly favours Chinese companies while saddling nations with debt and causing environmental damage. China has rejected accusations that Belt and Road is a "debt trap" and a geopolitical tool for Beijing's ambitions of becoming a global superpower. "The Belt and Road is not an exclusive club," Xi said at the gathering of 37 world leaders. In a nod to the concerns over loans, Xi said: "we also need to ensure the commercial and fiscal sustainability of all projects so that they will achieve the intended goals as planned." Finance Minister Liu Kun said Thursday that China would present the forum a debt sustainability framework to "prevent debt risks" -- a move welcomed by International Monetary Fund chief Christine Lagarde. The opacity of deals between Chinese companies and local governments has also raised alarm. "Everything should be done in a transparent way and we should have zero tolerance for corruption," Xi said. China will also promote "green" development, he said, amid warnings that some of the massive projects are causing environmental damage in Asia. Debt troubles Leaders from 37 countries have come to Beijing for the three-day forum, with officials from scores of other nations in attendance. Russian President Vladimir Putin, Pakistani Prime Minister Imran Khan and Italian Prime Minister Giuseppe Conte, whose country became the first G7 member to sign up to Belt and Road, are among the headliners. But EU powers Germany and France are sending ministers instead. The United States, which sent a senior White House official to the first BRI summit in 2017, has not dispatched any officials from Washington. Amid tensions over trade and other diplomatic spats, Washington has dismissed BRI as a "vanity project" and rebuked Rome for signing up to the scheme. Since Xi launched Belt and Road in 2013, China has invested $90 billion in projects while banks have provided upwards of $300 billion in loans, according to Chinese officials. But examples of debt trouble abound. Sri Lanka turned over a deep-sea port to China for 99 years after it was unable to repay loans. Pakistan needs an international bailout. And Montenegro has had to make difficult choices after taking on crushing Chinese debt to pay a Chinese company to build a new highway. Pushing back has proved a successful election issue in Asia, including in Sri Lanka, the Maldives and Malaysia, as the trademark infrastructure push is used to whip up fears about eroding sovereignty. The new Malaysian prime minister cancelled some planned works and renegotiated a rail project cutting 30 per cent off the price tag.

Chinese President Xi defends Belt and Road, says 'not exclusive club'

<a href="https://www.wionews.com/south-asia/pakistan-pm-imran-khan-arrives-in-china-for-four-day-visit-213570">Pakistan Prime Minister Imran Khan</a> on Friday mooted launching of joint projects among the <a href="https://www.wionews.com/photos/all-you-need-to-know-about-chinas-belt-and-road-initiative-213664">China-backed Belt and Road Initiative (BRI) </a>member countries to promote tourism, combat climate change, corruption and poverty.

The multi-billion dollar China-Pakistan Economic Corridor (CPEC) is entering the next phase after substantial progress, Khan said while speaking at the second Belt and Road Forum (BRF) in Beijing.

China is holding the BRF, which provides a platform to countries participating in the BRI, from April 25 to 27 in Beijing.

The BRI is a multi-billion-dollar initiative launched by Chinese President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.&nbsp;

The forum is being attended by 36 heads of states and governments besides officials from 150 countries and international organisations.

Prime Minister Khan said the BRI, which raised concerns of a debt trap, offered a model of collaboration, partnership, connectivity and shared prosperity.

India and the US skipped the BRF. India has protested over the $60 billion CPEC which is being laid through the Pakistan-occupied Kashmir. CPEC is officially regarded as a flagship project of China's trillion dollar BRI.

The US has termed the BRI as promoting predatory financing leading to heavy debt among smaller countries.

Khan's government itself was reported to have planned to cut down some of the CPEC projects soon after it came to power owing to concerns related to debt burden.

Addressing the BRF, the Pakistan prime minister said that in a world of geopolitical uncertainty, of rising inequality, and barriers to trade, the BRI offers a model of collaboration, partnership, connectivity and shared prosperity.

Pakistan has been among one of the BRI's earliest and most enthusiastic proponents, and CPEC is, one of the major components and one of its earliest manifestations and it has made substantial progress, he said.

Skirting India's criticism of CPEC as well as its objections, Khan said CPEC has helped in Pakistan's progress especially filling the critical infrastructure gaps.

He said that Pakistan and China are entering the next phase of CEPC together, with greater emphasis on social economic upliftment, poverty alleviation, agriculture cooperation and industrial development.

Both the countries are signing an expanded Pakistan China Free Trade Agreement, he said.

He also mooted cooperation among the countries signed up to BRI climate change cooperation.

In the last five years, Pakistan successfully planted five billion trees in Khyber-Pakhtunkhwa province, he said, adding that Pakistan has launched a nationwide project to plant 10 billion trees in the next five years.

He suggested that there should be some joint and ambitious projects of planting trees among the BRI countries to mitigate climate change.

He suggested the establishment of BRI tourism corridor to promote people-to-people contacts, inter-cultural understanding and most importantly to establish anti-corruption cooperation to combat the scourge of white-collar crime.

Khan has also mooted the creation of a poverty alleviation fund.

On April 19, Chinese Foreign Minister Wang Yi said that over 120 countries and international organisations, which have signed up for BRI, sent representatives to take part in the 2nd BRF.

Khan also thanked China and its leadership for the unwavering support to Pakistan.

The deep-rooted friendship, partnership and brotherhood with China remain strong, resilient and unbreakable, he added.

Pakistan Prime Minister Imran Khan on Friday mooted launching of joint projects among the China-backed Belt and Road Initiative (BRI) member countries to promote tourism, combat climate change, corruption and poverty.

Pakistan Prime Minister Imran Khan on Friday mooted launching of joint projects among the China-backed Belt and Road Initiative (BRI) member countries to promote tourism, combat climate change, corruption and poverty. The multi-billion dollar China-Pakistan Economic Corridor (CPEC) is entering the next phase after substantial progress, Khan said while speaking at the second Belt and Road Forum (BRF) in Beijing. China is holding the BRF, which provides a platform to countries participating in the BRI, from April 25 to 27 in Beijing. The BRI is a multi-billion-dollar initiative launched by Chinese President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes. The forum is being attended by 36 heads of states and governments besides officials from 150 countries and international organisations. Prime Minister Khan said the BRI, which raised concerns of a debt trap, offered a model of collaboration, partnership, connectivity and shared prosperity. India and the US skipped the BRF. India has protested over the $60 billion CPEC which is being laid through the Pakistan-occupied Kashmir. CPEC is officially regarded as a flagship project of China's trillion dollar BRI. The US has termed the BRI as promoting predatory financing leading to heavy debt among smaller countries. Khan's government itself was reported to have planned to cut down some of the CPEC projects soon after it came to power owing to concerns related to debt burden. Addressing the BRF, the Pakistan prime minister said that in a world of geopolitical uncertainty, of rising inequality, and barriers to trade, the BRI offers a model of collaboration, partnership, connectivity and shared prosperity. Pakistan has been among one of the BRI's earliest and most enthusiastic proponents, and CPEC is, one of the major components and one of its earliest manifestations and it has made substantial progress, he said. Skirting India's criticism of CPEC as well as its objections, Khan said CPEC has helped in Pakistan's progress especially filling the critical infrastructure gaps. He said that Pakistan and China are entering the next phase of CEPC together, with greater emphasis on social economic upliftment, poverty alleviation, agriculture cooperation and industrial development. Both the countries are signing an expanded Pakistan China Free Trade Agreement, he said. He also mooted cooperation among the countries signed up to BRI climate change cooperation. In the last five years, Pakistan successfully planted five billion trees in Khyber-Pakhtunkhwa province, he said, adding that Pakistan has launched a nationwide project to plant 10 billion trees in the next five years. He suggested that there should be some joint and ambitious projects of planting trees among the BRI countries to mitigate climate change. He suggested the establishment of BRI tourism corridor to promote people-to-people contacts, inter-cultural understanding and most importantly to establish anti-corruption cooperation to combat the scourge of white-collar crime. Khan has also mooted the creation of a poverty alleviation fund. On April 19, Chinese Foreign Minister Wang Yi said that over 120 countries and international organisations, which have signed up for BRI, sent representatives to take part in the 2nd BRF. Khan also thanked China and its leadership for the unwavering support to Pakistan. The deep-rooted friendship, partnership and brotherhood with China remain strong, resilient and unbreakable, he added.

Pakistan BRI's earliest and most enthusiastic proponents: PM Imran Khan

Pakistan <a href="https://www.wionews.com/south-asia/pakistans-pm-imran-khan-to-visit-china-next-week-sign-new-pacts-211179">Prime Minister Imran Khan</a> is all set to embark for his second visit to China from Thursday.

The visit comes in the wake of the second edition of the <a href="https://www.wionews.com/world/no-plans-to-send-officials-for-chinas-belt-and-road-forum-us-213201">Belt and Road forum</a> and will have leaders from 37 countries.

Imran Khan will pay a four-day visit to Beijing and will&nbsp;be accompanied by a high-level ministerial delegation.

This will be Khan’s second visit to China since coming to power in August 2018.

China has pledged about $60 billion in infrastructure loans for Pakistan, touted as a success story of its Belt and Road Initiative, which aims to build road and maritime trading routes across the globe.

Through the project, China aims to expand its influence worldwide with the help of a chain of infrastructure projects funded by Chinese investments.&nbsp;

India and Bhutan will be among a handful of countries to skip Xi Jinping's mega event.

India opposes the Belt and Road Initiative because its offshoot, the 60-billion-dollar China Pakistan Economic Corridor, passes through Pakistan-Occupied Kashmir, which is an integral part of the Jammu and Kashmir.

Besides delivering the keynote address to the forum, Imran Khan will also meet with the Chinese leadership.

He is also scheduled to hold talks with other heads of state or government on the margins of the forum.

Sources privy to the development say that China is likely to give an exemption to three-hundred-and-13 products of import from Pakistan.

Islamabad aims to sign a free trade agreement with China.

Pakistan’s crippling economy has been a worry for the Imran Khan government since he has taken charge. Friendly countries, including China, came to Islamabad’s rescue in a bid to pull the country out of a Balance-of-payments crisis.

Pakistan Prime Minister Imran Khan is all set to embark for his second visit to China from Thursday. The visit comes in the wake of the second edition of the Belt and Road forum and will have leaders from 37 countries.

Pakistan Prime Minister Imran Khan is all set to embark for his second visit to China from Thursday. The visit comes in the wake of the second edition of the Belt and Road forum and will have leaders from 37 countries. Imran Khan will pay a four-day visit to Beijing and will be accompanied by a high-level ministerial delegation. This will be Khan’s second visit to China since coming to power in August 2018. China has pledged about $60 billion in infrastructure loans for Pakistan, touted as a success story of its Belt and Road Initiative, which aims to build road and maritime trading routes across the globe. Through the project, China aims to expand its influence worldwide with the help of a chain of infrastructure projects funded by Chinese investments. India and Bhutan will be among a handful of countries to skip Xi Jinping's mega event. India opposes the Belt and Road Initiative because its offshoot, the 60-billion-dollar China Pakistan Economic Corridor, passes through Pakistan-Occupied Kashmir, which is an integral part of the Jammu and Kashmir. Besides delivering the keynote address to the forum, Imran Khan will also meet with the Chinese leadership. He is also scheduled to hold talks with other heads of state or government on the margins of the forum. Sources privy to the development say that China is likely to give an exemption to three-hundred-and-13 products of import from Pakistan. Islamabad aims to sign a free trade agreement with China. Pakistan’s crippling economy has been a worry for the Imran Khan government since he has taken charge. Friendly countries, including China, came to Islamabad’s rescue in a bid to pull the country out of a Balance-of-payments crisis.

Pakistan PM Imran Khan to visit China, will attend Belt and Road forum

Thousands of people in northern Myanmar took to the streets on Monday to protest against the proposed reinstatement of a Chinese-backed mega-dam they say will cause huge environmental damage and bring little benefit to the country.

The protest came just days ahead of a trip by civilian leader <a href="https://www.google.com/url?q=https://www.wionews.com/south-asia/masters-of-our-destiny-myanmars-wa-rebels-in-show-of-force-211110&amp;sa=U&amp;ved=0ahUKEwi9otvC5OPhAhUWT48KHepkAZEQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3T1c-GahxkcP7WtQE5VNHO">Aung San Suu Kyi </a>to Beijing for a summit on China's<a href="https://www.google.com/url?q=https://www.wionews.com/business-economy/in-nod-to-debt-concerns-china-belt-and-road-summit-to-urge-sustainable-financing-212224/amp&amp;sa=U&amp;ved=0ahUKEwjz1MmD4-PhAhVbiHAKHbE3AL0QFggLMAI&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2JLPX3MJlnkKJ_nh01yARC"> Belt and Road Initiative</a>.

Myanmar's former military junta signed a 2009 deal with Beijing to construct the Myitsone dam in Kachin state.

But public anger rose to the surface as the country started to transition towards democracy and the $3.6 billion project was mothballed two years later.

If the 6,000-megawatt dam were built on the country's famed Ayeyarwaddy River, it would flood an area the size of Singapore, displacing tens of thousands.

Now China is increasing pressure on its southern neighbour to revive the controversial project.

On Monday protesters marched through the Kachin town of Waimaw, some 50 kilometres from the proposed site of the dam, brandishing banners reading "No Myitsone Dam" and calling for the river to "flow freely forever".

"Myitsone is our inheritance from our ancestors and we cannot lose it," protester Tang Gun told AFP by phone.

He said more than 4,000 people took part in the march while several thousand more had signed a petition pledging their support for the protest.

Local police said 3,300 protesters had taken part.

The proposed project has stoked widespread public anger and anti-Chinese sentiment across Myanmar.

A World Wide Fund for Nature (WWF) 2018 report estimated that some 34 million people in Myanmar live in the Ayeyarwaddy basin, roughly two-thirds of the country's population.

An environmental assessment commissioned by the Myanmar government five years ago strongly advised against the dam's construction, saying the move could alter the river flow on a wide scale.

Suu Kyi was also an opponent of the dam before her party swept to power in 2015 elections.&nbsp;

Now many are alarmed she might have flipflopped on the issue after a speech in March when she called on people to think about the dam "from a wider perspective".

Myanmar is a vital piece of China's Belt and Road Initiative, the pet $1 trillion projects of President Xi Jinping that includes maritime, rail and road projects in Asia, Africa and Europe.

China says some 37 nations will be represented at the leader level of the April 25-27 summit in Beijing.

Thousands of people in northern Myanmar took to the streets on Monday to protest against the proposed reinstatement of a Chinese-backed mega-dam they say will cause huge environmental damage and bring little benefit to the country.

Thousands of people in northern Myanmar took to the streets on Monday to protest against the proposed reinstatement of a Chinese-backed mega-dam they say will cause huge environmental damage and bring little benefit to the country. The protest came just days ahead of a trip by civilian leader Aung San Suu Kyi to Beijing for a summit on China's Belt and Road Initiative. Myanmar's former military junta signed a 2009 deal with Beijing to construct the Myitsone dam in Kachin state. But public anger rose to the surface as the country started to transition towards democracy and the $3.6 billion project was mothballed two years later. If the 6,000-megawatt dam were built on the country's famed Ayeyarwaddy River, it would flood an area the size of Singapore, displacing tens of thousands. Now China is increasing pressure on its southern neighbour to revive the controversial project. On Monday protesters marched through the Kachin town of Waimaw, some 50 kilometres from the proposed site of the dam, brandishing banners reading "No Myitsone Dam" and calling for the river to "flow freely forever". "Myitsone is our inheritance from our ancestors and we cannot lose it," protester Tang Gun told AFP by phone. He said more than 4,000 people took part in the march while several thousand more had signed a petition pledging their support for the protest. Local police said 3,300 protesters had taken part. The proposed project has stoked widespread public anger and anti-Chinese sentiment across Myanmar. A World Wide Fund for Nature (WWF) 2018 report estimated that some 34 million people in Myanmar live in the Ayeyarwaddy basin, roughly two-thirds of the country's population. An environmental assessment commissioned by the Myanmar government five years ago strongly advised against the dam's construction, saying the move could alter the river flow on a wide scale. Suu Kyi was also an opponent of the dam before her party swept to power in 2015 elections. Now many are alarmed she might have flipflopped on the issue after a speech in March when she called on people to think about the dam "from a wider perspective". Myanmar is a vital piece of China's Belt and Road Initiative, the pet $1 trillion projects of President Xi Jinping that includes maritime, rail and road projects in Asia, Africa and Europe. China says some 37 nations will be represented at the leader level of the April 25-27 summit in Beijing.

Thousands protest China-backed mega-dam in Myanmar

China said on Friday it is ready to hold a Wuhan-style summit meeting with India this year to improve ties, not with standing the differences over the trillion-dollar Belt and Road Initiative in which the China-Pakistan Economic Corridor (CPEC) is a flagship project.

China : China ready for Wuhan-style summit meet with India despite differences over BRI

<a href="https://www.wionews.com/world/notre-dame-cathedral-was-probably-caused-by-accident-say-french-prosecutors-210901">Notre-Dame cathedral fire was probably caused by accident: French prosecutors</a>

The fire that tore through Notre-Dame cathedral was probably caused by accident, French prosecutors said on Tuesday after firefighters doused the last flames in the ruins overnight.

<a href="https://www.wionews.com/world/will-sign-accord-backing-chinas-belt-and-road-initiative-switzerland-210910">Will sign accord backing China's Belt and Road Initiative: Switzerland</a>

Switzerland will sign an accord backing China's Belt and Road Initiative(BRI) when President Ueli Maurer visits China this month, cementing ties with a major trading partner as other Western countries view the gargantuan project with scepticism.

<a href="https://www.wionews.com/world/no-2-islamic-state-leader-abdulhakim-killed-in-somalia-air-strike-us-military-210906">Islamic State No 2 Abdulhakim killed in Somalia air strike: US military</a>

The US military has confirmed that it had killed the second-ranking Islamic State leader in Somalia in an air strike. US Africa Command said that Abdulhakim Dhuqub was killed on Sunday in the strike vicinity of Xiriiro in the Bari region.

<a href="https://www.wionews.com/india-news/lok-sabha-polls-2019-shatrughan-sinhas-wife-poonam-sinha-joins-samajwadi-party-210893">Shatrughan Sinha's wife Poonam Sinha joins SP, set to take Rajnath Singh from Lucknow</a>

Veteran actor and former BJP leader Shatrughan Sinha's wife Poonam Sinha joined Samajwadi Party on Tuesday in the presence of Kannauj MP Dimple Yadav.

<a href="https://www.wionews.com/business-economy/jet-airways-shares-sink-8-amid-reports-of-temporary-shutdown-of-operations-210939">Jet Airways shares sink 8% amid reports of temporary shutdown of operations</a>

Shares of Jet Airways plunged nearly 8 per cent Tuesday amid reports that the company is likely to temporarily shut down its operations. The scrip tumbled 7.62 per cent to close at Rs 241.85 on the BSE. During the day, it plummeted 18.56 per cent to Rs 213.20.

Notre-Dame cathedral fire was probably caused by accident: French prosecutors The fire that tore through Notre-Dame cathedral was probably caused by accident, French prosecutors said on Tuesday after firefighters doused the last flames in the ruins overnight.

Notre-Dame cathedral fire was probably caused by accident: French prosecutors The fire that tore through Notre-Dame cathedral was probably caused by accident, French prosecutors said on Tuesday after firefighters doused the last flames in the ruins overnight. Will sign accord backing China's Belt and Road Initiative: Switzerland Switzerland will sign an accord backing China's Belt and Road Initiative(BRI) when President Ueli Maurer visits China this month, cementing ties with a major trading partner as other Western countries view the gargantuan project with scepticism. Islamic State No 2 Abdulhakim killed in Somalia air strike: US military The US military has confirmed that it had killed the second-ranking Islamic State leader in Somalia in an air strike. US Africa Command said that Abdulhakim Dhuqub was killed on Sunday in the strike vicinity of Xiriiro in the Bari region. Shatrughan Sinha's wife Poonam Sinha joins SP, set to take Rajnath Singh from Lucknow Veteran actor and former BJP leader Shatrughan Sinha's wife Poonam Sinha joined Samajwadi Party on Tuesday in the presence of Kannauj MP Dimple Yadav. Jet Airways shares sink 8% amid reports of temporary shutdown of operations Shares of Jet Airways plunged nearly 8 per cent Tuesday amid reports that the company is likely to temporarily shut down its operations. The scrip tumbled 7.62 per cent to close at Rs 241.85 on the BSE. During the day, it plummeted 18.56 per cent to Rs 213.20.

News brief: Big stories of the day

Switzerland will sign an accord backing <a href="https://www.wionews.com/world/how-cpec-is-used-to-traffic-young-pakistani-women-to-china-210874">China's Belt and Road Initiative(BRI)</a> when President Ueli Maurer visits China this month, cementing ties with a major trading partner as other Western countries view the gargantuan project with scepticism.

President<a href="https://www.wionews.com/south-asia/sri-lankan-politicians-praise-china-proposed-belt-and-road-initiative-210416"> Xi Jinping's new Silk Road</a> initiative has been controversial particularly in Washington, which views it as a way to spread Chinese influence abroad and saddle countries with unsustainable debt, a charge Beijing rejects.

Locked in a trade war with China, the United States has been particularly critical of Italy's decision to sign up to the plan, the first for a G7 nation. Others in the West are less keen to jump aboard, although many have kept an open mind.

Neutral Switzerland sees the BRI accord to be signed during Maurer's trip as a way to support economic development, especially in central Asia.

"The aim of the memorandum is for both parties to intensify cooperation on trade, investment and project financing in third markets along the routes of the Belt and Road Initiative", the finance ministry said on Tuesday without giving more details.

Maurer, who is also finance minister, will attend the second Belt and Road summit next week which is expected to draw around 40 foreign leaders.

The first summit for Belt and Road - which envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond with massive infrastructure spending - was in 2017.

Xi has also invited Maurer for a state visit on April 28 and 29, his ministry said. Swiss business and financial leaders will accompany Maurer on his eight-day China trip.

Switzerland, one of the first Western states to recognise the People's Republic, was the first country in continental Europe to reach a free trade agreement with China, its largest trade partner after the European Union and United States.

Xi made a state visit to Switzerland in 2017.

Switzerland will sign an accord backing China's Belt and Road Initiative(BRI) when President Ueli Maurer visits China this month, cementing ties with a major trading partner as other Western countries view the gargantuan project with scepticism.

Switzerland will sign an accord backing China's Belt and Road Initiative(BRI) when President Ueli Maurer visits China this month, cementing ties with a major trading partner as other Western countries view the gargantuan project with scepticism. President Xi Jinping's new Silk Road initiative has been controversial particularly in Washington, which views it as a way to spread Chinese influence abroad and saddle countries with unsustainable debt, a charge Beijing rejects. Locked in a trade war with China, the United States has been particularly critical of Italy's decision to sign up to the plan, the first for a G7 nation. Others in the West are less keen to jump aboard, although many have kept an open mind. Neutral Switzerland sees the BRI accord to be signed during Maurer's trip as a way to support economic development, especially in central Asia. "The aim of the memorandum is for both parties to intensify cooperation on trade, investment and project financing in third markets along the routes of the Belt and Road Initiative", the finance ministry said on Tuesday without giving more details. Maurer, who is also finance minister, will attend the second Belt and Road summit next week which is expected to draw around 40 foreign leaders. The first summit for Belt and Road - which envisions rebuilding the old Silk Road to connect China with Asia, Europe and beyond with massive infrastructure spending - was in 2017. Xi has also invited Maurer for a state visit on April 28 and 29, his ministry said. Swiss business and financial leaders will accompany Maurer on his eight-day China trip. Switzerland, one of the first Western states to recognise the People's Republic, was the first country in continental Europe to reach a free trade agreement with China, its largest trade partner after the European Union and United States. Xi made a state visit to Switzerland in 2017.

Will sign accord backing China's Belt and Road Initiative: Switzerland

Sri Lankan politicians praised <a href="https://www.wionews.com/south-asia/chinas-belt-and-road-outreach-to-nepal-wont-work-says-leading-european-think-tank-210282">China-proposed Belt and Road Initiative</a> (BRI) for its benefits to their country.

As China-assisted projects under the BRI, like the Colombo Port City project and the Hambantota International Port development project, have benefited the economy of Sri Lanka and the life of local people, and Sri Lanka is among the first countries joining the initiative, Prime Minister Ranil Wickremesinghe spoke highly of the BRI in an interview with China Central Television (CCTV).

Wickremesinghe noted he has seen more countries in favour of the BRI over the past years, as the initiative linking existing land and maritime roads is helpful to development.

"The Belt and Road Initiative is really creating an economic system, which is helpful to us in Asia. I would call it innovative," he said.

Karu Jayasuriya, speaker of the Parliament, told CCTV that he is confident about the prospect of the BRI.

"Sri Lanka and China have been in a relationship which has been lasting for thousands of years. So, therefore, traditionally, we have been friends, and China has been a friend to us during good times and bad times, and we are very happy that China has been with us in this process of development. They have been involved with us in several development programs like the building of roads, buildings, the airports and also seaports, and especially in the infrastructure, the country is now opening up to the world as an ideal investment centre. So I'm happy with this initiative that you are taking. Sri Lanka will be seen as a country that is poised for growth," said Jayasuriya.

As the second Belt and Road Forum for International Cooperation will be held in Beijing late April, Wickremesinghe said the Sri Lankan government participated in the first forum two years ago and got real benefits, so it will actively take part in the second forum as well.

"I was there at the first meeting of the Belt and Road Initiative [in Beijing]. We have all agreed together on the Belt and Road Initiative, it's potential for economic development." Wickremesinghe said.

The prime minister said the second Belt and Road Forum for International Cooperation will play a bigger role in the development and Chinese President Xi Jinping is courageous in starting the BRI.

The BRI, proposed by Chinese President Xi in 2013, aims to build a trade and infrastructure network connecting Asia with Europe, Africa and beyond.

Sri Lankan politicians praised China-proposed Belt and Road Initiative (BRI) for its benefits to their country. As China-assisted projects under the BRI, like the Colombo Port City project and the Hambantota International Port development project, have benefited the economy of Sri Lanka and the life of local people, and Sri Lanka is among the first countries joining the initiative, Prime Minister Ranil Wickremesinghe spoke highly of the BRI in an interview with China Central Television (CCTV).

Sri Lankan politicians praised China-proposed Belt and Road Initiative (BRI) for its benefits to their country. As China-assisted projects under the BRI, like the Colombo Port City project and the Hambantota International Port development project, have benefited the economy of Sri Lanka and the life of local people, and Sri Lanka is among the first countries joining the initiative, Prime Minister Ranil Wickremesinghe spoke highly of the BRI in an interview with China Central Television (CCTV). Wickremesinghe noted he has seen more countries in favour of the BRI over the past years, as the initiative linking existing land and maritime roads is helpful to development. "The Belt and Road Initiative is really creating an economic system, which is helpful to us in Asia. I would call it innovative," he said. Karu Jayasuriya, speaker of the Parliament, told CCTV that he is confident about the prospect of the BRI. "Sri Lanka and China have been in a relationship which has been lasting for thousands of years. So, therefore, traditionally, we have been friends, and China has been a friend to us during good times and bad times, and we are very happy that China has been with us in this process of development. They have been involved with us in several development programs like the building of roads, buildings, the airports and also seaports, and especially in the infrastructure, the country is now opening up to the world as an ideal investment centre. So I'm happy with this initiative that you are taking. Sri Lanka will be seen as a country that is poised for growth," said Jayasuriya. As the second Belt and Road Forum for International Cooperation will be held in Beijing late April, Wickremesinghe said the Sri Lankan government participated in the first forum two years ago and got real benefits, so it will actively take part in the second forum as well. "I was there at the first meeting of the Belt and Road Initiative [in Beijing]. We have all agreed together on the Belt and Road Initiative, it's potential for economic development." Wickremesinghe said. The prime minister said the second Belt and Road Forum for International Cooperation will play a bigger role in the development and Chinese President Xi Jinping is courageous in starting the BRI. The BRI, proposed by Chinese President Xi in 2013, aims to build a trade and infrastructure network connecting Asia with Europe, Africa and beyond.

Sri Lankan politicians praise China-proposed Belt and Road initiative

India is hopeful it will avoid US sanctions over its purchase of <a href="https://www.wionews.com/world/india-should-be-careful-while-acquiring-russias-s-400-triumf-air-defence-missile-cautions-us-congressman--140572">Russia's S-400 missile system</a>, Defence Minister Nirmala Sitharaman told.

New Delhi has been "heard and understood" by the US administration over its accord to buy the S-400 missile defence system for $5.2 billion, the minister said in an interview this week.

Prime Minister Narendra Modi made the deal with <a href="https://www.wionews.com/south-asia/india-to-purchase-russias-s-400-air-defence-units-in-multi-billion-dollar-deal-7456">Russian President Vladimir Putin</a> in October, defying US warnings of sanctions on countries buying Russian military equipment. The sanctions were part of measures to punish Moscow for its actions in Ukraine in 2014.

President Donald Trump's administration imposed sanctions on China's military last year over Beijing's purchase of the S-400 and other military hardware.&nbsp;

It has also warned NATO member Turkey of sanctions for buying the S-400, and has suspended Turkey's participation in a US jet programme.

Sitharaman told AFP that Washington has taken on board that India, bordering both Pakistan and China, needed arms from Russia, and others, to remain a "strong partner".&nbsp;

Negotiations with Moscow, a longstanding supplier to India's military, on the S-400 began before the US sanctions were introduced, she said.

"In the case of S-400 we have explained ourselves well... That has been heard and understood," Sitharaman said. "They have appreciated the point of view put forward."

Asked if she was confident that India would avoid sanctions, Sitharaman said,&nbsp;"Yes I hope so."

Cold water

Before the deal was inked, Washington poured cold water on India's efforts to obtain a waiver from the US Countering America's Adversaries Through Sanctions Act (CAATSA).

Upgrades in arms systems "including the S-400 air and missile defence system" would be a particular focus for CAATSA, a US State Department spokesperson was quoted as saying by India's PTI news agency.&nbsp;

But Randall Schriver, Assistant Secretary of Defence for Indo-Pacific Security Affairs, told a hearing in March that Washington wanted to "work through" the problem, calling India "an important emerging strategic partner."

He added however that India's contract with Russia has not been completed and that the US was "very keen to see (India) make an alternative choice (to the S-400) and we are working with them to provide potential alternatives."

China

Washington is in a tricky position with India. It wants to bolster ties with the Asian giant to counter China's assertiveness, a trend which has also rattled New Delhi.

In 2017 India and China had a military standoff over a Doklam claimed by both Beijing and Bhutan, a close ally of India.

Since then China and India have sought to patch up relations, including at a meeting between Modi and President Xi Jinping at Wuhan, China in April 2018.

"Sometimes there are differences and you have a face-off," Sitharaman said. "But our attempt, particularly after the prime minister's Wuhan meet with the Chinese president, our attempt has been that these differences... cannot be allowed to become disputes."

But China has also made inroads in Sri Lanka and the Maldives -- countries that India considers to be in its sphere of influence -- through its One Belt, One Road Initiative (OBOR), also known as the Belt and Road Initiative (BRI).

India has particular concerns about a series of projects passing through Pakistan occupied Kashmir, a disputed territory which was the fuse for a new military flare-up between Pakistan and India in February.

China has also blocked efforts to put on UN sanctions blacklist the leader of a Pakistan-based militant group that claimed a suicide bombing in Kashmir's Pulwama district&nbsp;on February 14 that killed 40 Indian paramilitary troops.

New Delhi has reportedly declined a Chinese invitation to take part in an OBOR forum in China later this month.

"Areas which are ours legally, which are under illegal occupation of Pakistan, are the ones which are becoming part of the China-Pakistan Economic Corridor," Sitharaman said.

"So having made that position very clear, we have not participated in anything to do with OBOR, and we stick to that position," she said.

India is hopeful it will avoid US sanctions over its purchase of Russia's S-400 missile system, Defence Minister Nirmala Sitharaman told. New Delhi has been "heard and understood" by the US administration over its accord to buy the S-400 missile defence system for $5.

India is hopeful it will avoid US sanctions over its purchase of Russia's S-400 missile system, Defence Minister Nirmala Sitharaman told. New Delhi has been "heard and understood" by the US administration over its accord to buy the S-400 missile defence system for $5.2 billion, the minister said in an interview this week. Prime Minister Narendra Modi made the deal with Russian President Vladimir Putin in October, defying US warnings of sanctions on countries buying Russian military equipment. The sanctions were part of measures to punish Moscow for its actions in Ukraine in 2014. President Donald Trump's administration imposed sanctions on China's military last year over Beijing's purchase of the S-400 and other military hardware. It has also warned NATO member Turkey of sanctions for buying the S-400, and has suspended Turkey's participation in a US jet programme. Sitharaman told AFP that Washington has taken on board that India, bordering both Pakistan and China, needed arms from Russia, and others, to remain a "strong partner". Negotiations with Moscow, a longstanding supplier to India's military, on the S-400 began before the US sanctions were introduced, she said. "In the case of S-400 we have explained ourselves well... That has been heard and understood," Sitharaman said. "They have appreciated the point of view put forward." Asked if she was confident that India would avoid sanctions, Sitharaman said, "Yes I hope so." Cold water Before the deal was inked, Washington poured cold water on India's efforts to obtain a waiver from the US Countering America's Adversaries Through Sanctions Act (CAATSA). Upgrades in arms systems "including the S-400 air and missile defence system" would be a particular focus for CAATSA, a US State Department spokesperson was quoted as saying by India's PTI news agency. But Randall Schriver, Assistant Secretary of Defence for Indo-Pacific Security Affairs, told a hearing in March that Washington wanted to "work through" the problem, calling India "an important emerging strategic partner." He added however that India's contract with Russia has not been completed and that the US was "very keen to see (India) make an alternative choice (to the S-400) and we are working with them to provide potential alternatives." China Washington is in a tricky position with India. It wants to bolster ties with the Asian giant to counter China's assertiveness, a trend which has also rattled New Delhi. In 2017 India and China had a military standoff over a Doklam claimed by both Beijing and Bhutan, a close ally of India. Since then China and India have sought to patch up relations, including at a meeting between Modi and President Xi Jinping at Wuhan, China in April 2018. "Sometimes there are differences and you have a face-off," Sitharaman said. "But our attempt, particularly after the prime minister's Wuhan meet with the Chinese president, our attempt has been that these differences... cannot be allowed to become disputes." But China has also made inroads in Sri Lanka and the Maldives -- countries that India considers to be in its sphere of influence -- through its One Belt, One Road Initiative (OBOR), also known as the Belt and Road Initiative (BRI). India has particular concerns about a series of projects passing through Pakistan occupied Kashmir, a disputed territory which was the fuse for a new military flare-up between Pakistan and India in February. China has also blocked efforts to put on UN sanctions blacklist the leader of a Pakistan-based militant group that claimed a suicide bombing in Kashmir's Pulwama district on February 14 that killed 40 Indian paramilitary troops. New Delhi has reportedly declined a Chinese invitation to take part in an OBOR forum in China later this month. "Areas which are ours legally, which are under illegal occupation of Pakistan, are the ones which are becoming part of the China-Pakistan Economic Corridor," Sitharaman said. "So having made that position very clear, we have not participated in anything to do with OBOR, and we stick to that position," she said.

'Heard and understood' by US: Nirmala Sitharaman on S-400 missile deal with Russia

China is struggling to ease worries about President Xi Jinping's signature plan to build a new Silk Road as it readies for a major summit in late April, especially among Western nations wary about debt, transparency and Chinese influence.

While China gained a major victory by convincing Italy to become the first G7 nation to formally sign on to the plan last month during Xi's visit to Rome, others in the West have been less keen to jump on board, though many have kept an open mind.

The Belt and Road Initiative, as it is formally called, is aimed at building a vast network of infrastructure connecting China to Central Asia, Southeast Asia, Europe and beyond, much like the ancient Silk Road.

Following the first Belt and Road summit two years ago, in a luxuriously appointed convention centre in hills north of Beijing, the second one is scheduled for the same location in late April. China is billing it as the country's most important diplomatic event of the year.

The country's top diplomat, Yang Jiechi, said on Saturday that almost 40 foreign leaders would come, and also took a swipe at "prejudiced" critics of the programme who seek to besmirch it with concerns like "debt traps".

"The Belt and Road is open, inclusive and transparent. It does not play little geopolitical games," Yang, who runs the ruling Communist Party's foreign affairs committee, told the official People's Daily.

The United States, locked in a bitter trade war with China, has been a particular critic of the Belt and Road, calling it an "infrastructure vanity project" when Italy signed on.

Jonathan Cohen, acting permanent representative of the United States at the United Nations, last month slammed China's attempt to get Belt and Road language into a resolution on Afghanistan, saying it had "known problems with corruption, debt distress, environmental damage, and lack of transparency".

Wu Haitao, chargé d'affaires of China's Permanent Mission to the United Nations, said the rebuke was "contrary to the facts and fraught with prejudice".

In 2017, the United States sent White House National Security Council senior director for Asian affairs Matt Pottinger to the summit. This time, Washington said it will not dispatch high-level officials due to its concerns about the project.

Lower-level staffers, possibly from the US&nbsp;embassy in Beijing, might go to the summit to observe and take notes, sources familiar with the matter said, though a final decision has yet to be made.

China says it always welcomes "like-minded countries" to take part in the project.

It has not disclosed a full list of the leaders planning to attend the event. But some of Beijing's closest friends have confirmed they will go, including Russian President Vladimir Putin and Pakistan Prime Minister Imran Khan.

EU Wariness

The European Union, China's largest trading partner, has also been in a bind about how to respond.

Last week, Europe's top leaders told Xi they wanted a fairer trading relationship with China, signalling an openness to engage with the project if it meant more access to the Chinese market.

German Chancellor Angela Merkel, speaking at the EU summit in March, grumbled about Italian Prime Minister Giuseppe Conte's decision to join the project, although she said Germany will play in active role in the Belt and Road and called for reciprocity.

Conte is due to attend the summit. Rome says signing onto the Belt and Road will bring much-needed investment and boost trade and has pointed to the fact that a dozen EU countries have already signed memoranda of understanding (MOUs) with China, including Hungary, Poland, Greece and Portugal.

Safeguarding interests

The EU last year proposed its own infrastructure scheme, but it has denied it is trying to counter China's ambitions.

"For China it is a question of power projection. China is corrupting what should be a level playing field by offering loans that send country debts soaring and create a culture of economic dependency on Beijing," one EU official said.

German Economy Minister Peter Altmaier, a Merkel confidant, is attending the summit, along with French Foreign Minister Jean-Yves Le Drian, with Altmaier saying they wanted to "safeguard European interests in co-operation with China there".

Several EU officials said the European Commission was still looking at who to send as a replacement for Vice President Jyrki Katainen, who attended 2017's Belt and Road summit and has cited a calendar clash with the EU-Japan summit for not being able to go this time.

China has been on a push to show that the Belt and Road remains popular, despite cooling enthusiasm from governments including in Pakistan, Sri Lanka, Malaysia and the Maldives, where new administrations are wary of deals struck with China by their predecessors.

The Chinese government's top diplomat, State Councillor Wang Yi, who ranks below Yang, last month touted the success of the $57-billion China-Pakistan Economic Corridor, a major Belt and Road scheme.

Wang said after meeting Pakistan's foreign minister that less than 20 per cent of funding for the China-Pakistan Economic Corridor came from Chinese loans, with the rest made up of direct Chinese investment and free grants.

The corridor focuses on the interests of ordinary people, Wang said, citing as an example women truck drivers trained to work at a coal mine connected to the project, which he described as a "touching story".

Wang told reporters at March's annual meeting of parliament that the Belt and Road was about high quality, sustainable, green development.

"As President Xi has said, the Belt and Road initiative comes from China, but the achievements belong to the world," Wang said.

China is struggling to ease worries about President Xi Jinping's signature plan to build a new Silk Road as it readies for a major summit in late April, especially among Western nations wary about debt, transparency and Chinese influence.

China is struggling to ease worries about President Xi Jinping's signature plan to build a new Silk Road as it readies for a major summit in late April, especially among Western nations wary about debt, transparency and Chinese influence. While China gained a major victory by convincing Italy to become the first G7 nation to formally sign on to the plan last month during Xi's visit to Rome, others in the West have been less keen to jump on board, though many have kept an open mind. The Belt and Road Initiative, as it is formally called, is aimed at building a vast network of infrastructure connecting China to Central Asia, Southeast Asia, Europe and beyond, much like the ancient Silk Road. Following the first Belt and Road summit two years ago, in a luxuriously appointed convention centre in hills north of Beijing, the second one is scheduled for the same location in late April. China is billing it as the country's most important diplomatic event of the year. The country's top diplomat, Yang Jiechi, said on Saturday that almost 40 foreign leaders would come, and also took a swipe at "prejudiced" critics of the programme who seek to besmirch it with concerns like "debt traps". "The Belt and Road is open, inclusive and transparent. It does not play little geopolitical games," Yang, who runs the ruling Communist Party's foreign affairs committee, told the official People's Daily. The United States, locked in a bitter trade war with China, has been a particular critic of the Belt and Road, calling it an "infrastructure vanity project" when Italy signed on. Jonathan Cohen, acting permanent representative of the United States at the United Nations, last month slammed China's attempt to get Belt and Road language into a resolution on Afghanistan, saying it had "known problems with corruption, debt distress, environmental damage, and lack of transparency". Wu Haitao, chargé d'affaires of China's Permanent Mission to the United Nations, said the rebuke was "contrary to the facts and fraught with prejudice". In 2017, the United States sent White House National Security Council senior director for Asian affairs Matt Pottinger to the summit. This time, Washington said it will not dispatch high-level officials due to its concerns about the project. Lower-level staffers, possibly from the US embassy in Beijing, might go to the summit to observe and take notes, sources familiar with the matter said, though a final decision has yet to be made. China says it always welcomes "like-minded countries" to take part in the project. It has not disclosed a full list of the leaders planning to attend the event. But some of Beijing's closest friends have confirmed they will go, including Russian President Vladimir Putin and Pakistan Prime Minister Imran Khan. EU Wariness The European Union, China's largest trading partner, has also been in a bind about how to respond. Last week, Europe's top leaders told Xi they wanted a fairer trading relationship with China, signalling an openness to engage with the project if it meant more access to the Chinese market. German Chancellor Angela Merkel, speaking at the EU summit in March, grumbled about Italian Prime Minister Giuseppe Conte's decision to join the project, although she said Germany will play in active role in the Belt and Road and called for reciprocity. Conte is due to attend the summit. Rome says signing onto the Belt and Road will bring much-needed investment and boost trade and has pointed to the fact that a dozen EU countries have already signed memoranda of understanding (MOUs) with China, including Hungary, Poland, Greece and Portugal. Safeguarding interests The EU last year proposed its own infrastructure scheme, but it has denied it is trying to counter China's ambitions. "For China it is a question of power projection. China is corrupting what should be a level playing field by offering loans that send country debts soaring and create a culture of economic dependency on Beijing," one EU official said. German Economy Minister Peter Altmaier, a Merkel confidant, is attending the summit, along with French Foreign Minister Jean-Yves Le Drian, with Altmaier saying they wanted to "safeguard European interests in co-operation with China there". Several EU officials said the European Commission was still looking at who to send as a replacement for Vice President Jyrki Katainen, who attended 2017's Belt and Road summit and has cited a calendar clash with the EU-Japan summit for not being able to go this time. China has been on a push to show that the Belt and Road remains popular, despite cooling enthusiasm from governments including in Pakistan, Sri Lanka, Malaysia and the Maldives, where new administrations are wary of deals struck with China by their predecessors. The Chinese government's top diplomat, State Councillor Wang Yi, who ranks below Yang, last month touted the success of the $57-billion China-Pakistan Economic Corridor, a major Belt and Road scheme. Wang said after meeting Pakistan's foreign minister that less than 20 per cent of funding for the China-Pakistan Economic Corridor came from Chinese loans, with the rest made up of direct Chinese investment and free grants. The corridor focuses on the interests of ordinary people, Wang said, citing as an example women truck drivers trained to work at a coal mine connected to the project, which he described as a "touching story". Wang told reporters at March's annual meeting of parliament that the Belt and Road was about high quality, sustainable, green development. "As President Xi has said, the Belt and Road initiative comes from China, but the achievements belong to the world," Wang said.

China struggles to ease concerns over Silk Road project as summit looms

US Secretary of State Mike Pompeo voiced disappointment Wednesday after <a href="https://www.wionews.com/world/italy-becomes-the-first-g7-nation-to-join-chinas-belt-and-road-initiative-205117">Italy joined China's "Silk Road" network</a> of transport and trade links, saying it was not in the ally's long-term interest.

Rome's populist government signed a "non-binding" protocol with visiting President Xi Jinping on Saturday that made Italy the first nation in the Group of Seven major economies to become part of the signature Chinese project.

"It's disappointing anytime any country begins to engage in behaviour and commercial interactions with China that aren't straight up," Pompeo told the House Foreign Affairs Committee in response after a lawmaker asked about the Italian decision.

"We're saddened because we think <a href="https://www.wionews.com/world/chinas-belt-and-road-led-to-corruption-in-malaysia-report-189666">the people of those countries ultimately lose</a>," Pompeo said.

Under the Silk Road initiative, named for the ancient trading route across Eurasia, China is funding major rail, road and sea infrastructure as it seeks a big boost in international trade.

Pompeo, however, said that China practised "debt-trap diplomacy" with its state-owned or state-controlled enterprises looking after only their own interests.

"It may feel good in the moment — you think you got a cheap product or a low-cost bridge or road built. And in the end there will be a political cost attached to that which will greatly exceed the economic value of what you were provided," he said.

The United States has stepped up its warnings around the world about China's growing economic clout.

It has notably urged nations not to choose Chinese telecom giant Huawei to upgrade to fifth-generation communications, voicing privacy and security fears.

Critics say that the United States is mostly trying to shore up its own businesses which are facing tough competition, with Huawei selling phones that are substantially cheaper than Apple's.

US Secretary of State Mike Pompeo voiced disappointment Wednesday after Italy joined China's "Silk Road" network of transport and trade links, saying it was not in the ally's long-term interest.

US Secretary of State Mike Pompeo voiced disappointment Wednesday after Italy joined China's "Silk Road" network of transport and trade links, saying it was not in the ally's long-term interest. Rome's populist government signed a "non-binding" protocol with visiting President Xi Jinping on Saturday that made Italy the first nation in the Group of Seven major economies to become part of the signature Chinese project. "It's disappointing anytime any country begins to engage in behaviour and commercial interactions with China that aren't straight up," Pompeo told the House Foreign Affairs Committee in response after a lawmaker asked about the Italian decision. "We're saddened because we think the people of those countries ultimately lose," Pompeo said. Under the Silk Road initiative, named for the ancient trading route across Eurasia, China is funding major rail, road and sea infrastructure as it seeks a big boost in international trade. Pompeo, however, said that China practised "debt-trap diplomacy" with its state-owned or state-controlled enterprises looking after only their own interests. "It may feel good in the moment — you think you got a cheap product or a low-cost bridge or road built. And in the end there will be a political cost attached to that which will greatly exceed the economic value of what you were provided," he said. The United States has stepped up its warnings around the world about China's growing economic clout. It has notably urged nations not to choose Chinese telecom giant Huawei to upgrade to fifth-generation communications, voicing privacy and security fears. Critics say that the United States is mostly trying to shore up its own businesses which are facing tough competition, with Huawei selling phones that are substantially cheaper than Apple's.

US's Pompeo 'saddened' by Italy joining China's Belt and Road project

By Winnie King

Italy is projected to be the first G7 nation to officially endorse China’s Belt and Road Initiative (BRI). And that’s raising the ire of both the European Union and the United States.

Having re-entered a recession at the end of 2018, the eurozone’s third largest economy is welcoming China’s President Xi Jinping for a three-day state visit. While there, Italy is expected to sign a memorandum of understanding – making it the 124th nation to sign up for this geographically expansive infrastructure and investment strategy.

Proposed in 2013, China’s BRI is a transcontinental project that focuses on infrastructure investment and projects that promote regional cooperation, development and connectivity. It offers participants a means to secure their trade, energy and transport network. China presents it as a win-win relationship aimed at mutual growth. But there are suspicions regarding China’s motivations – it’s seen as a way for China to embed its global influence – and it could make participants dependent on China. Today the BRI is linked to two-thirds of the world’s population, and has to-date seen an investment of more than $1 trillion.

The Italian job

While the current Italian government has not been fully unified toward China, a severe economic downturn has made the world’s second-largest economy look more appealing to it. Alberto Bradanini, Italy’s former ambassador to China, has stressed that Europe’s own indecision and inability to tackle trade deficits with China (of which Italy contributed approximately €176m, or an eighth of the EU’s total trade deficit) is a key motivator behind this decision.

Italy wants to enhance its “Made in Italy” brand through increasing trade – especially in the form of exports – to China. The BRI is seen as a vehicle to achieve this. Italy offers goods (in particular luxury goods and foodstuffs) that are attractive to China’s growing middle class and increasingly affluent population.

China is also interested in investing in Italian firms. More significant, however, are Italy’s key infrastructure assets. This would enhance the transport and trading network of the BRI, giving it strategic access to Europe. Less than 2 per cent of Italy’s sea imports come from China so there are substantial prospects for growth in that area.

A deal between Genoa’s port authority and shipping firm China Communications Construction Company (CCCC) has already been approved by the Italian government. And the port city of Trieste hopes for something similar. This would offer China and the BRI a more direct route to move goods onto the European continent and an ideal hub for accessing new rail lines and transport networks to Germany, Austria, Slovenia and other regional economies. By giving China access to its ports, Italy is hoping for infrastructure investment from China’s Asian Infrastructure Investment Bank (AIIB) – something the Italian government is trying to link to its role in the BRI.

With the port city of Palermo due to be part of Xi’s itinerary, it is clear that China is focused on European shipping terminal options. Following Algeria’s joining of the BRI in mid-2018, Palermo could help establish a new North African trade corridor.

Disunity and discontent 
 
The international response to Italy’s decision has been, at best, mixed. Germany and France have led the charge, raising concerns of China’s poor reputation regarding transparency, unfair BRI practices of favouring Chinese firms, as well as Chinese protectionism restricting European firms from Chinese projects.

The EU is clearly particularly concerned about what Italy’s decision means for the bloc’s China Policy. It is important to note, however, that when it comes to the BRI, Europe’s unified China’s Policy fell as early as 2017. It was then that Premier Li Keqiang’s visited Hungary and the coalition of Central and Eastern European Countries (CEEC), also including Poland and the Czech Republic, signed up to the BRI. Greece, Portugal and Croatia then followed suit.

The US has also derided Italy’s decision to break the G7 position on the BRI. The Trump government has labelled the BRI as a vehicle for debt trap diplomacy and accused the BRI of being nothing but a vanity project.

The growing tensions between China and the US do not help matters. The two sides are locked in a trade war and US charges of espionage against Chinese tech firm Huawei encapsulate its fears over Chinese investment in strategic industries and acquisitions. But traditional alliances seem to have fallen to the wayside, as Telecom Italia has agreed to remain partnered with Huawei.

The full impact of Xi’s visit to Italy will become more clear come April 9 when Brussels is scheduled to host an EU-China summit. In the build-up,&nbsp;however, the EU’s increasingly China-sceptic leadership has published an official strategy document labelling China a “systemic rival”. Targeting the BRI specifically, it calls upon member states to work together to pressure the Chinese for more accountability and greater transparency in the area of infrastructure and investment projects. Furthermore, on March 18th the EU tabled a proposal calling upon all member states to ban Chinese firms from bidding on public procurement projects.

Italy’s status as a G7 country is a coup for the Chinese leadership and the legitimacy of the BRI. While the prospect of Italy’s participation underscores growing fault lines in the EU’s joint approach to China, China has also been effective at dividing and conquering EU member states by targeting them individually.

So Italy’s decision to join the BRI is significant. But four years ago we saw Italy, France and Germany join China’s AIIB, contrary to US wishes. Therefore, Italy is neither the first, nor will it be the last European economy that will “go rogue” and follow its own national interest with regard to China.

 
(Winnie King is Teaching Fellow East Asian and International Political Economy, University of Bristol)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/italy-joins-chinas-belt-and-road-initiative-heres-how-it-exposes-cracks-in-europe-and-the-g7-114039">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

 
&nbsp;

By Winnie King Italy is projected to be the first G7 nation to officially endorse China’s Belt and Road Initiative (BRI). And that’s raising the ire of both the European Union and the United States.

By Winnie King Italy is projected to be the first G7 nation to officially endorse China’s Belt and Road Initiative (BRI). And that’s raising the ire of both the European Union and the United States. Having re-entered a recession at the end of 2018, the eurozone’s third largest economy is welcoming China’s President Xi Jinping for a three-day state visit. While there, Italy is expected to sign a memorandum of understanding – making it the 124th nation to sign up for this geographically expansive infrastructure and investment strategy. Proposed in 2013, China’s BRI is a transcontinental project that focuses on infrastructure investment and projects that promote regional cooperation, development and connectivity. It offers participants a means to secure their trade, energy and transport network. China presents it as a win-win relationship aimed at mutual growth. But there are suspicions regarding China’s motivations – it’s seen as a way for China to embed its global influence – and it could make participants dependent on China. Today the BRI is linked to two-thirds of the world’s population, and has to-date seen an investment of more than $1 trillion. The Italian job While the current Italian government has not been fully unified toward China, a severe economic downturn has made the world’s second-largest economy look more appealing to it. Alberto Bradanini, Italy’s former ambassador to China, has stressed that Europe’s own indecision and inability to tackle trade deficits with China (of which Italy contributed approximately €176m, or an eighth of the EU’s total trade deficit) is a key motivator behind this decision. Italy wants to enhance its “Made in Italy” brand through increasing trade – especially in the form of exports – to China. The BRI is seen as a vehicle to achieve this. Italy offers goods (in particular luxury goods and foodstuffs) that are attractive to China’s growing middle class and increasingly affluent population. China is also interested in investing in Italian firms. More significant, however, are Italy’s key infrastructure assets. This would enhance the transport and trading network of the BRI, giving it strategic access to Europe. Less than 2 per cent of Italy’s sea imports come from China so there are substantial prospects for growth in that area. A deal between Genoa’s port authority and shipping firm China Communications Construction Company (CCCC) has already been approved by the Italian government. And the port city of Trieste hopes for something similar. This would offer China and the BRI a more direct route to move goods onto the European continent and an ideal hub for accessing new rail lines and transport networks to Germany, Austria, Slovenia and other regional economies. By giving China access to its ports, Italy is hoping for infrastructure investment from China’s Asian Infrastructure Investment Bank (AIIB) – something the Italian government is trying to link to its role in the BRI. With the port city of Palermo due to be part of Xi’s itinerary, it is clear that China is focused on European shipping terminal options. Following Algeria’s joining of the BRI in mid-2018, Palermo could help establish a new North African trade corridor. Disunity and discontent The international response to Italy’s decision has been, at best, mixed. Germany and France have led the charge, raising concerns of China’s poor reputation regarding transparency, unfair BRI practices of favouring Chinese firms, as well as Chinese protectionism restricting European firms from Chinese projects. The EU is clearly particularly concerned about what Italy’s decision means for the bloc’s China Policy. It is important to note, however, that when it comes to the BRI, Europe’s unified China’s Policy fell as early as 2017. It was then that Premier Li Keqiang’s visited Hungary and the coalition of Central and Eastern European Countries (CEEC), also including Poland and the Czech Republic, signed up to the BRI. Greece, Portugal and Croatia then followed suit. The US has also derided Italy’s decision to break the G7 position on the BRI. The Trump government has labelled the BRI as a vehicle for debt trap diplomacy and accused the BRI of being nothing but a vanity project. The growing tensions between China and the US do not help matters. The two sides are locked in a trade war and US charges of espionage against Chinese tech firm Huawei encapsulate its fears over Chinese investment in strategic industries and acquisitions. But traditional alliances seem to have fallen to the wayside, as Telecom Italia has agreed to remain partnered with Huawei. The full impact of Xi’s visit to Italy will become more clear come April 9 when Brussels is scheduled to host an EU-China summit. In the build-up, however, the EU’s increasingly China-sceptic leadership has published an official strategy document labelling China a “systemic rival”. Targeting the BRI specifically, it calls upon member states to work together to pressure the Chinese for more accountability and greater transparency in the area of infrastructure and investment projects. Furthermore, on March 18th the EU tabled a proposal calling upon all member states to ban Chinese firms from bidding on public procurement projects. Italy’s status as a G7 country is a coup for the Chinese leadership and the legitimacy of the BRI. While the prospect of Italy’s participation underscores growing fault lines in the EU’s joint approach to China, China has also been effective at dividing and conquering EU member states by targeting them individually. So Italy’s decision to join the BRI is significant. But four years ago we saw Italy, France and Germany join China’s AIIB, contrary to US wishes. Therefore, Italy is neither the first, nor will it be the last European economy that will “go rogue” and follow its own national interest with regard to China. (Winnie King is Teaching Fellow East Asian and International Political Economy, University of Bristol) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Italy joins China’s Belt and Road Initiative – here’s how it exposes cracks in Europe and the G7

Italy moves to join China's Belt and Road Initiative; Xi Jinping ends his Italy visit

Despite a warning by the United States, Italy on Saturday joined China`s signature foreign policy Belt and Road initiative (BRI), making it the first G7 country to officially do so reports Xinhua.

Addressing a press conference, Italian president Sergio Mattarella said, "Italy and China were at the two ends of the ancient Silk Road which had been a bond closely linking the two countries.&nbsp;

Italy supports Xi`s initiative on jointly building the Belt and Road and believes that it will be conducive to Eurasian connectivity and common development, as well as to reviving the ancient Silk Road in modern times."

"Italy supports Xi`s initiative on jointly building the Belt and Road and believes that it will be conducive to Eurasian connectivity and common development, as well as to reviving the ancient Silk Road in modern times," he added.

China and Italy on Saturday signed a Memorandum of Understanding in this regard.&nbsp;

Already, China has signed BRI cooperation agreements with over 40 countries.

Notably, this might upset Italy`s other partners including the US and other European countries as it would mean China economic domination in the reason.&nbsp;

The US had also urged Italy not to "lend legitimacy" to China`s "infrastructure vanity project" while referring to the One Belt One Road (OBOR) initiative.

Facing the third recession in a decade, Italy has defended its action saying that Chinese investment is good for their country. The Chinese President arrived in Rome on Thursday for a state visit and he will later head to Monaco and France.&nbsp;

Despite a warning by the United States, Italy on Saturday joined China`s signature foreign policy Belt and Road initiative (BRI), making it the first G7 country to officially do so reports Xinhua.

Despite a warning by the United States, Italy on Saturday joined China`s signature foreign policy Belt and Road initiative (BRI), making it the first G7 country to officially do so reports Xinhua. Addressing a press conference, Italian president Sergio Mattarella said, "Italy and China were at the two ends of the ancient Silk Road which had been a bond closely linking the two countries. Italy supports Xi`s initiative on jointly building the Belt and Road and believes that it will be conducive to Eurasian connectivity and common development, as well as to reviving the ancient Silk Road in modern times." "Italy supports Xi`s initiative on jointly building the Belt and Road and believes that it will be conducive to Eurasian connectivity and common development, as well as to reviving the ancient Silk Road in modern times," he added. China and Italy on Saturday signed a Memorandum of Understanding in this regard. Already, China has signed BRI cooperation agreements with over 40 countries. Notably, this might upset Italy`s other partners including the US and other European countries as it would mean China economic domination in the reason. The US had also urged Italy not to "lend legitimacy" to China`s "infrastructure vanity project" while referring to the One Belt One Road (OBOR) initiative. Facing the third recession in a decade, Italy has defended its action saying that Chinese investment is good for their country. The Chinese President arrived in Rome on Thursday for a state visit and he will later head to Monaco and France.

Italy becomes the first G7 nation to join China's Belt and Road initiative 

Chinese President Xi Jinping <a href="https://www.wionews.com/world/as-xi-heads-to-italy-vatican-says-china-should-not-fear-church-203868">who is on a state visit to Italy</a> said there was no fundamental conflict of interest as he sought to strengthen relations with the NATO ally.

China will be signing a memorandum of <a href="https://www.wionews.com/world/us-urges-italy-against-chinas-obor-initiative-202369">understanding(MoU) with Rome</a>&nbsp;on Saturday to join the $1 trillion Belt and Road Initiative(BRI) which seeks to connect China with Africa and Europe through land and sea routes.

Italy will become the first of the group of seven major industrialised nations to join China's BRI project.

"Between us, there is no fundamental conflict of interest," Xi said, adding, "China wants commercial exchanges to go both ways and for investment to flow in both directions."

"Collaboration in third markets are based on the profound combination of finance, technology and the market. This type of operation is very useful to broaden the perspective of collaboration between the two countries," Xi added.

Italy's President Sergio Mattarella agreeing with Xi, said: "Business must go "in both directions... with fair competition, respecting intellectual property rights and while fighting counterfeit goods."

"We want to revitalise the ancient Silk Road in order to better share the fruits of humanity's progress," Xi said following talks with Italian President Sergio Mattarella.

Italy is also due to sign various agreements with China worth $7.9 billion including agreements opening up the northern ports of Trieste and Genoa to Chinese cargo ships.&nbsp;

However, Italy's move has been opposed by the US. Last week White House official Garrett Marquis had tweeted saying that there was "no need" for Italy to endorse "China's infrastructure vanity project".

Chinese President Xi Jinping who is on a state visit to Italy said there was no fundamental conflict of interest as he sought to strengthen relations with the NATO ally.

Chinese President Xi Jinping who is on a state visit to Italy said there was no fundamental conflict of interest as he sought to strengthen relations with the NATO ally. China will be signing a memorandum of understanding(MoU) with Rome on Saturday to join the $1 trillion Belt and Road Initiative(BRI) which seeks to connect China with Africa and Europe through land and sea routes. Italy will become the first of the group of seven major industrialised nations to join China's BRI project. "Between us, there is no fundamental conflict of interest," Xi said, adding, "China wants commercial exchanges to go both ways and for investment to flow in both directions." "Collaboration in third markets are based on the profound combination of finance, technology and the market. This type of operation is very useful to broaden the perspective of collaboration between the two countries," Xi added. Italy's President Sergio Mattarella agreeing with Xi, said: "Business must go "in both directions... with fair competition, respecting intellectual property rights and while fighting counterfeit goods." "We want to revitalise the ancient Silk Road in order to better share the fruits of humanity's progress," Xi said following talks with Italian President Sergio Mattarella. Italy is also due to sign various agreements with China worth $7.9 billion including agreements opening up the northern ports of Trieste and Genoa to Chinese cargo ships. However, Italy's move has been opposed by the US. Last week White House official Garrett Marquis had tweeted saying that there was "no need" for Italy to endorse "China's infrastructure vanity project".

Want to revitalise ancient Silk Road, says Xi during meeting with Italy President Mattarella

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

Prime Minister Giuseppe Conte is to sign a memorandum of understanding with Xi on Saturday for Italy to join the $1 trillion Belt and Road Initiative, the first G7 member to do so, despite apparent divisions within the ruling coalition.

Italy on Friday rolled out the red carpet for Xi, who met his Italian counterpart Sergio Mattarella amid great pomp, and was due to head to parliament in the afternoon.

Around 1,000 extra police have been deployed around Rome for the state visit before Xi heads to Palermo, where his singer wife Peng Liyuan reportedly wants to see the Teatro Massimo opera house.&nbsp;

In what some perceived as a snub, Italy's far-right Deputy Prime Minister Matteo Salvini said he would not attend Saturday's state dinner for Xi at Mattarella's Quirinal Palace.

Salvini has said Italy would be "no-one's colony" and urged caution about using telecom giant Huawei's next-generation 5G mobile technology, while coalition partner Luigi Di Maio is keener for Chinese partnerships.

The United States has warned European allies that Huawei could use its 5G technology as a "backdoor" for spying, while China has lashed out at "immoral" attacks.

NATO member Italy's plan to join China's ambitious maritime, rail and road venture, which critics warn mainly benefits Chinese firms, has raised eyebrows among Western allies and within Italy.

"Today we say 'Italy first' in trade relations, while remaining US allies, in NATO and in the EU," Deputy Prime Minister Di Maio of the anti-establishment Five Star Movement said on the sidelines of a China-Italy business forum on Friday.

Allies' concerns about 5G could be allayed by strengthening the Italian government's so-called 'golden powers' to keep control of strategic industries and infrastructure, Di Maio said.

- 'Trojan horse' - 
Debt-ridden Italy is technically in recession and keen to have more business with China.

White House official Garrett Marquis last week tweeted that there was "no need" for Italy to endorse "China's infrastructure vanity project".

Xi's visit comes a week after the European Union released a 10-point plan outlining a shift to more assertive relations with Beijing, warning that China was a "rival" to the bloc as well as its biggest trading partner.

France on Thursday announced that President Emmanuel Macron will hold trade and climate talks on Tuesday with Xi, German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker.

As he arrived for the EU summit in Brussels, Macron welcomed what he called Europe's "awakening" to the challenge posed by China.

But his office struck a more conciliatory tone in announcing Tuesday's talks, saying it was an opportunity to explain Europe's strategy and seek "points of convergence between Europe and China".

The meeting comes ahead of a China-EU summit in Brussels next month, as the bloc struggles to forge Europe-wide China policies.

- Strategic ports - 
Beijing is particularly interested in investing in Italian ports to help funnel its products into Europe, amid warnings that Rome must avoid the model of the Greek port of Piraeus, which was taken over by Chinese shipping giant Cosco in 2016.

Supporters of the non-binding MoU said that it will lead to China complying with European Union standards, including on the environment and intellectual property, and cannot be compared to debt-inducing deals Beijing has signed with developing countries.

Despite apparent warming ties, Xi is not expected to meet Pope Francis.&nbsp;

The Vatican has diplomatic relations with Taiwan and not Beijing, so the encounter would be unlikely despite an agreement on appointing bishops in China signed last year.

Xi heads to Monaco on Sunday and then on to France to cap his European tour.

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project.

Chinese President Xi Jinping kicked off a whistlestop European tour in Rome on Friday amid growing Western unease over Italy joining the ever-expanding Asian giant's new Silk Road project. Prime Minister Giuseppe Conte is to sign a memorandum of understanding with Xi on Saturday for Italy to join the $1 trillion Belt and Road Initiative, the first G7 member to do so, despite apparent divisions within the ruling coalition. Italy on Friday rolled out the red carpet for Xi, who met his Italian counterpart Sergio Mattarella amid great pomp, and was due to head to parliament in the afternoon. Around 1,000 extra police have been deployed around Rome for the state visit before Xi heads to Palermo, where his singer wife Peng Liyuan reportedly wants to see the Teatro Massimo opera house. In what some perceived as a snub, Italy's far-right Deputy Prime Minister Matteo Salvini said he would not attend Saturday's state dinner for Xi at Mattarella's Quirinal Palace. Salvini has said Italy would be "no-one's colony" and urged caution about using telecom giant Huawei's next-generation 5G mobile technology, while coalition partner Luigi Di Maio is keener for Chinese partnerships. The United States has warned European allies that Huawei could use its 5G technology as a "backdoor" for spying, while China has lashed out at "immoral" attacks. NATO member Italy's plan to join China's ambitious maritime, rail and road venture, which critics warn mainly benefits Chinese firms, has raised eyebrows among Western allies and within Italy. "Today we say 'Italy first' in trade relations, while remaining US allies, in NATO and in the EU," Deputy Prime Minister Di Maio of the anti-establishment Five Star Movement said on the sidelines of a China-Italy business forum on Friday. Allies' concerns about 5G could be allayed by strengthening the Italian government's so-called 'golden powers' to keep control of strategic industries and infrastructure, Di Maio said. - 'Trojan horse' - Debt-ridden Italy is technically in recession and keen to have more business with China. White House official Garrett Marquis last week tweeted that there was "no need" for Italy to endorse "China's infrastructure vanity project". Xi's visit comes a week after the European Union released a 10-point plan outlining a shift to more assertive relations with Beijing, warning that China was a "rival" to the bloc as well as its biggest trading partner. France on Thursday announced that President Emmanuel Macron will hold trade and climate talks on Tuesday with Xi, German Chancellor Angela Merkel and European Commission president Jean-Claude Juncker. As he arrived for the EU summit in Brussels, Macron welcomed what he called Europe's "awakening" to the challenge posed by China. But his office struck a more conciliatory tone in announcing Tuesday's talks, saying it was an opportunity to explain Europe's strategy and seek "points of convergence between Europe and China". The meeting comes ahead of a China-EU summit in Brussels next month, as the bloc struggles to forge Europe-wide China policies. - Strategic ports - Beijing is particularly interested in investing in Italian ports to help funnel its products into Europe, amid warnings that Rome must avoid the model of the Greek port of Piraeus, which was taken over by Chinese shipping giant Cosco in 2016. Supporters of the non-binding MoU said that it will lead to China complying with European Union standards, including on the environment and intellectual property, and cannot be compared to debt-inducing deals Beijing has signed with developing countries. Despite apparent warming ties, Xi is not expected to meet Pope Francis. The Vatican has diplomatic relations with Taiwan and not Beijing, so the encounter would be unlikely despite an agreement on appointing bishops in China signed last year. Xi heads to Monaco on Sunday and then on to France to cap his European tour.

China's new Silk Road gets bumpy as Xi Jinping visits Italy

Italy will sign a memorandum of understanding with China to officially support Beijing's massive Belt and Road Initiative (BRI), the Undersecretary of Foreign Affairs said Monday.

The signing will take place during the visit of Chinese President Xi Jinping to Rome on March 20, and will make Italy the first G7 nation to join the so-called "New Silk Road" project, Manlio Di Stefano told La Stampa daily.

Xi Jinping "will meet the head of government and the President of the Republic. There will be economic meetings since he will be accompanied by a team of entrepreneurs, and a memorandum of understanding will be signed," he said.

However, the "memorandum is not binding", he said in a bid to quell concern in the United States and other Western countries that the ambitious infrastructure project could be a Trojan horse for Chinese expansion.

"It does not have the status of an international agreement", he added.

Neither, he said, does it concern the telecoms sector, access to which critics fear could allow China to create "backdoors" that could allow Beijing to spy on countries.

Italy will sign a memorandum of understanding with China to officially support Beijing's massive Belt and Road Initiative (BRI), the Undersecretary of Foreign Affairs said Monday.

Italy will sign a memorandum of understanding with China to officially support Beijing's massive Belt and Road Initiative (BRI), the Undersecretary of Foreign Affairs said Monday. The signing will take place during the visit of Chinese President Xi Jinping to Rome on March 20, and will make Italy the first G7 nation to join the so-called "New Silk Road" project, Manlio Di Stefano told La Stampa daily. Xi Jinping "will meet the head of government and the President of the Republic. There will be economic meetings since he will be accompanied by a team of entrepreneurs, and a memorandum of understanding will be signed," he said. However, the "memorandum is not binding", he said in a bid to quell concern in the United States and other Western countries that the ambitious infrastructure project could be a Trojan horse for Chinese expansion. "It does not have the status of an international agreement", he added. Neither, he said, does it concern the telecoms sector, access to which critics fear could allow China to create "backdoors" that could allow Beijing to spy on countries.

Italy to sign MoU with China to officially support Beijing's massive Belt and Road Initiative

Australia will allow imports of the intoxicating drink kava, Prime Minister Scott Morrison said as he sought to forge closer ties with its Pacific neighbours amid growing <a href="http://www.wionews.com/business-%26-economy/chinas-huawei-blasts-australian-security-concerns-amid-sino-canberra-tensions-145129">Chinese interest in the region</a>.

"Kava is an important product and has a successful market around the world and we have done a lot of work with Vanuatu to ensure some of those markets are opened up and that can include now to a greater extent, than has currently existed in Australia, for that to be realised as well," PM Morrison said.

Australia and China have been vying for influence<a href="http://www.wionews.com/world/china-australian-navy-involved-in-encounter-in-south-china-sea-131633"> in sparsely populated Pacific island countries</a> that control vast swathes of resource-rich ocean. Vanuatu last year had signed up to China's Belt and Road initiative(BRI), just a few months after Australia promised to bolster its cyber-security capability.

"We're here because we believe in the region and always have. We've always been here. We will always be here supporting our friends and family and partners in the Pacific. We have done it for decades. In fact, we have been here for 40 years," the Australian prime minister said, adding,"we will continue to be here because we believe in the peace and prosperity and stability and independence and sovereignty of our region."&nbsp;

To improve cultural ties, Morrison said Australia would remove restrictions on kava, a mildly intoxicating brew that is deeply embedded in the social fabric of Pacific islanders.

Morrison will next travel to Fiji on Thursday as part of a Pacific tour. Australia last year offered Pacific countries up to $2.16 billion in grants and cheap loans to build infrastructure.

Australia will allow imports of the intoxicating drink kava, Prime Minister Scott Morrison said as he sought to forge closer ties with its Pacific neighbours amid growing Chinese interest in the region.

Australia will allow imports of the intoxicating drink kava, Prime Minister Scott Morrison said as he sought to forge closer ties with its Pacific neighbours amid growing Chinese interest in the region. "Kava is an important product and has a successful market around the world and we have done a lot of work with Vanuatu to ensure some of those markets are opened up and that can include now to a greater extent, than has currently existed in Australia, for that to be realised as well," PM Morrison said. Australia and China have been vying for influence in sparsely populated Pacific island countries that control vast swathes of resource-rich ocean. Vanuatu last year had signed up to China's Belt and Road initiative(BRI), just a few months after Australia promised to bolster its cyber-security capability. "We're here because we believe in the region and always have. We've always been here. We will always be here supporting our friends and family and partners in the Pacific. We have done it for decades. In fact, we have been here for 40 years," the Australian prime minister said, adding,"we will continue to be here because we believe in the peace and prosperity and stability and independence and sovereignty of our region." To improve cultural ties, Morrison said Australia would remove restrictions on kava, a mildly intoxicating brew that is deeply embedded in the social fabric of Pacific islanders. Morrison will next travel to Fiji on Thursday as part of a Pacific tour. Australia last year offered Pacific countries up to $2.16 billion in grants and cheap loans to build infrastructure.

Watch: Amid competition with China, Australia to allow kava import to boost Pacific ties

China's multi-billion dollar 'One Belt and Road' (OBOR) initiative has 'funded' corruption in Malaysia, an investigation carried out by The Wall Street Journal (WSJ) has revealed.

The documents, accessed by the WSJ, reveal Beijing's designs of causing corruption in Malaysia.

SupChina, 'an independent digital media company,' in an article titled 'How China's Belt And Road Reportedly Funded Corruption In Malaysia' called the WSJ report a 'bombshell story.'

Quoting the investigative piece, SupChina said the minutes of the meeting of Najib Razak-led Malaysian government, which was in power from April 2009 to May 2018, as well as the interviews with "people in position to know the events, among them a former official of Mr&nbsp;Najib's government" revealed China's overseas influence.

"Chinese officials told visiting Malaysians that China would use its influence to try to get the US and other countries to drop their probes of allegations that allies of then-Prime Minister Najib Razak and others plundered the fund known as 1MDB," writes SupChina's Associate Editor Lucas Niewenhuis.

Infrastructure projects, funded by China, were planned in Malaysia at "above market profitability" with excess funds created to "settle the 1MDB debts."

The East Coast Rail Link, a major part of China's initiative, was originally estimated to cost $7.25 billion. But turned into a $16 billion project, though it was suspended by Malaysia's new Prime Minister Mahathir Mohamad.

Referring to the WSJ piece, Niewenhuis says that there are many 'juicy details' in the report, like China's State-owned Assets Supervision and Administration Commission Xiao Yaqing, in June 2016, said that Chinese President Xi Jinping had "personally approved the infrastructure initiatives." However, attributing the information to online news portal Malaysiakini, SupChina says both Najib and the Chinese embassy in Kuala Lumpur, have denied these allegations.

The FT also reports that Malaysia's Finance Minister Lim Guan Eng said that he would like to have a copy of those minutes that the WSJ report mentions, adding that he would "pursue" anything that is "in black and white" regarding the alleged improper deals.

According to Singapore's state broadcaster Channel NewsAsia, Lim said, "We know that the price (of projects with China) is inflated, but whether there was such a deal, I have to check."

China's multi-billion dollar 'One Belt and Road' (OBOR) initiative has 'funded' corruption in Malaysia, an investigation carried out by The Wall Street Journal (WSJ) has revealed.

China's multi-billion dollar 'One Belt and Road' (OBOR) initiative has 'funded' corruption in Malaysia, an investigation carried out by The Wall Street Journal (WSJ) has revealed. The documents, accessed by the WSJ, reveal Beijing's designs of causing corruption in Malaysia. SupChina, 'an independent digital media company,' in an article titled 'How China's Belt And Road Reportedly Funded Corruption In Malaysia' called the WSJ report a 'bombshell story.' Quoting the investigative piece, SupChina said the minutes of the meeting of Najib Razak-led Malaysian government, which was in power from April 2009 to May 2018, as well as the interviews with "people in position to know the events, among them a former official of Mr Najib's government" revealed China's overseas influence. "Chinese officials told visiting Malaysians that China would use its influence to try to get the US and other countries to drop their probes of allegations that allies of then-Prime Minister Najib Razak and others plundered the fund known as 1MDB," writes SupChina's Associate Editor Lucas Niewenhuis. Infrastructure projects, funded by China, were planned in Malaysia at "above market profitability" with excess funds created to "settle the 1MDB debts." The East Coast Rail Link, a major part of China's initiative, was originally estimated to cost $7.25 billion. But turned into a $16 billion project, though it was suspended by Malaysia's new Prime Minister Mahathir Mohamad. Referring to the WSJ piece, Niewenhuis says that there are many 'juicy details' in the report, like China's State-owned Assets Supervision and Administration Commission Xiao Yaqing, in June 2016, said that Chinese President Xi Jinping had "personally approved the infrastructure initiatives." However, attributing the information to online news portal Malaysiakini, SupChina says both Najib and the Chinese embassy in Kuala Lumpur, have denied these allegations. The FT also reports that Malaysia's Finance Minister Lim Guan Eng said that he would like to have a copy of those minutes that the WSJ report mentions, adding that he would "pursue" anything that is "in black and white" regarding the alleged improper deals. According to Singapore's state broadcaster Channel NewsAsia, Lim said, "We know that the price (of projects with China) is inflated, but whether there was such a deal, I have to check."

China's Belt and Road led to corruption in Malaysia: Report

President Xi Jinping, China's most powerful leader since Mao Zedong, was re-elected to a second five-year term as president in March this year by the country's rubber-stamp parliament.

As China asserts itself on the world stage, its president has, at the same time, consolidated his power in an unprecedented way.

Xi's ascent culminated in parliament's passing of a constitutional amendment that eliminated term limits for the presidency, discarding a rule that had helped keep leaders in check and underpinned collective decision-making for 35 years.

Xi was named general secretary of China's ruling Communist Party, and also the chairman of Central Military Commission in 2012 and soon started manoeuvring to consolidate his power. This year, he has met a flurry of global leaders in a bid to cement China's increasing international footprint.

He is already overseeing his ambitious project, the Belt and Road Initiative (BRI), which seeks to connect Africa, Asia and Europe through a trade route. China has been spending billions, investing heavily in countries through which the BRI will pass.

He met US President Donald Trump after a bitter trade war between the two countries threatened to disrupt the global economy. At the G20 summit in Argentina on December 1, the two leaders agreed to a 90-day truce to look into the US grievances over trade imbalance.

Xi also met North Korean leader Kim Jong-un thrice this year amid rants from the hermit kingdom about its nuclear programme and pressue from the West. The first meeting was held in March, when Kim secretly travelled to Beijing in an armoured train. And then in May, after the inter-Korean summit. Xi and Kim met for the third time in June ahead of meeting with Trump for facilitating preace process between North and South Korea led by the US.

Amid signs of thaw, Xi met Japanese Prime Minister Shizo Abe in Beijing and signed a number of business deals.

Xi was born in Beijing a "princeling" child of an official. His father, Xi Zhongxun, fought in the Communist revolution and later served as an official, rising to become a liberal-minded vice premier. The young Xi grew up among the party elite but saw his father purged and later jailed during the 1966-76 Cultural Revolution, only to be rehabilitated and allowed back into government after Mao Zedong's death.

After being sent to work in the poverty-stricken countryside, in Shaanxi province, as a teenager during the Cultural Revolution, Xi joined the Communist Youth League and then, in 1974, the party, at the age of about 21.

In 2007, Xi was promoted into the Politburo Standing Committee, the most elite political body, directly from the Central Committee, after stints in the government and party in Fujian and Zhejiang provinces and Shanghai. He and Li Keqiang, the current premier, were seen as likely successors to then-president and party chief Hu Jintao. Xi also became a vice-chairman of the Central Military Commission.

Xi was elected vice president by the National People's Congress in 2008 and four years later, was named general secretary of the Communist Party. He also became chairman of the Central Military Commission in the same year. Soon after taking over, Xi launched China's most sweeping anti-corruption drive. Xi used the campaign to clean out the senior ranks of the military, thousands of officials were punished for corruption or "discipline violations".

The National People's Congress elected Xi president in March, 2013. By 2017, Xi's political thinking - "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" - was enshrined into the party’s constitution. Because Xi is still serving in office, this move is widely interpreted as placing him in the same company as the founder of modern China, Mao, and cementing his power.

Xi was handed a second term as general secretary of the party during the 19th Party Congress in October, 2017, and within six months, the National People's Congress voted nearly unanimously to abolish term limits for the presidency.

President Xi Jinping, China's most powerful leader since Mao Zedong, was re-elected to a second five-year term as president in March this year by the country's rubber-stamp parliament.

President Xi Jinping, China's most powerful leader since Mao Zedong, was re-elected to a second five-year term as president in March this year by the country's rubber-stamp parliament. As China asserts itself on the world stage, its president has, at the same time, consolidated his power in an unprecedented way. Xi's ascent culminated in parliament's passing of a constitutional amendment that eliminated term limits for the presidency, discarding a rule that had helped keep leaders in check and underpinned collective decision-making for 35 years. Xi was named general secretary of China's ruling Communist Party, and also the chairman of Central Military Commission in 2012 and soon started manoeuvring to consolidate his power. This year, he has met a flurry of global leaders in a bid to cement China's increasing international footprint. He is already overseeing his ambitious project, the Belt and Road Initiative (BRI), which seeks to connect Africa, Asia and Europe through a trade route. China has been spending billions, investing heavily in countries through which the BRI will pass. He met US President Donald Trump after a bitter trade war between the two countries threatened to disrupt the global economy. At the G20 summit in Argentina on December 1, the two leaders agreed to a 90-day truce to look into the US grievances over trade imbalance. Xi also met North Korean leader Kim Jong-un thrice this year amid rants from the hermit kingdom about its nuclear programme and pressue from the West. The first meeting was held in March, when Kim secretly travelled to Beijing in an armoured train. And then in May, after the inter-Korean summit. Xi and Kim met for the third time in June ahead of meeting with Trump for facilitating preace process between North and South Korea led by the US. Amid signs of thaw, Xi met Japanese Prime Minister Shizo Abe in Beijing and signed a number of business deals. Xi was born in Beijing a "princeling" child of an official. His father, Xi Zhongxun, fought in the Communist revolution and later served as an official, rising to become a liberal-minded vice premier. The young Xi grew up among the party elite but saw his father purged and later jailed during the 1966-76 Cultural Revolution, only to be rehabilitated and allowed back into government after Mao Zedong's death. After being sent to work in the poverty-stricken countryside, in Shaanxi province, as a teenager during the Cultural Revolution, Xi joined the Communist Youth League and then, in 1974, the party, at the age of about 21. In 2007, Xi was promoted into the Politburo Standing Committee, the most elite political body, directly from the Central Committee, after stints in the government and party in Fujian and Zhejiang provinces and Shanghai. He and Li Keqiang, the current premier, were seen as likely successors to then-president and party chief Hu Jintao. Xi also became a vice-chairman of the Central Military Commission. Xi was elected vice president by the National People's Congress in 2008 and four years later, was named general secretary of the Communist Party. He also became chairman of the Central Military Commission in the same year. Soon after taking over, Xi launched China's most sweeping anti-corruption drive. Xi used the campaign to clean out the senior ranks of the military, thousands of officials were punished for corruption or "discipline violations". The National People's Congress elected Xi president in March, 2013. By 2017, Xi's political thinking - "Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era" - was enshrined into the party’s constitution. Because Xi is still serving in office, this move is widely interpreted as placing him in the same company as the founder of modern China, Mao, and cementing his power. Xi was handed a second term as general secretary of the party during the 19th Party Congress in October, 2017, and within six months, the National People's Congress voted nearly unanimously to abolish term limits for the presidency.

Chinese President Xi Jinping's year of diplomacy

Contrary to conventional notions of a harmonious diplomatic relationship, there is a sharp difference in the way Nepal and India view each other. Following Independence, India emulated Britain’s approach in having a treaty-based relationship with Nepal, which led to Nepal’s grudging acceptance of India’s dominion.&nbsp;

To be sure, China’s engagement in Nepal is not new. More importantly—and contrary to how it is portrayed in Nepal—it is not entirely positive. However, the engagement is crucial, since China’s newfound economic power is as yet unmatched.

This challenges India’s privileged position in Nepal. Indian Prime Minister Narendra Modi has taken various initiatives and has indicated that he intends to address Nepal’s concerns regarding India.

Nepal’s eagerness to engage with China has been of interest to observers and largely misinterpreted as Prime Minister Khadga Prasad Sharma Oli’s strategy to acquire more from India.&nbsp;

However, the current approach fits perfectly in Nepal’s long tradition of pursuing a diversified foreign policy and partners, taking advantage of its key geostrategic position. Oli’s government aims to keep Nepal’s relationship with China independent of the one it shares with India. The question to ask is whether Nepal will be able to achieve this, given India’s discomfort with the increasing Chinese proximity.

New Delhi was for long perceived in Kathmandu as “hawkish” in dealing with sensitive matters.&nbsp;

The most notable instances of this include different river treaties, reluctance to respond to regular border-encroachment complaints, high-structure build-up along the border, inundation complaints, trade and transit crises and embargoes.

There are historical reasons that explain the dynamics of the Indo-Nepal bilateral relationship. To maintain a sphere of influence, India needs sufficient soft power, as well as hard power, along with the confidence to act.&nbsp;

Indeed, the nature of India-Nepal relations has always been a mixed bag. Due to its provisions and protocols, the 1950 treaty quickly became controversial and set the conflictive tone of the bilateral relationship. The provisions of the 1950 Indo-Nepal Peace and Friendship Treaty constrained Nepal as an ally and a state under India’s security umbrella.&nbsp;

Given the asymmetrical size of the two countries, and Nepal’s reservations towards India due to the treaty-based unequal treatment, the open border has always been a crucial area of contention, except for communities and business groups that benefit from it directly.

Nepal’s largest trading partner is India (the total trade accounting for 65 per cent), with whom Nepal runs the largest trade deficit. There was an improvement following the amendment of the trade commerce treaty with India in 1996, as exports increased and the deficit dropped.&nbsp;

While, on paper, Nepal remains an ally of India, it has constitutionally asserted that its foreign policy is “based on the Charter of the United Nations, non-alignment, principles of Panchsheel (and) international law.”

Despite Oli’s “ultranationalist” election rhetoric, he has responded positively to Modi’s and Foreign Minister Sushma Swaraj’s overtures. Modi and Oli have established a relationship of trust, negotiating some important agreements during their visits. The agreement on the controversial Arun III hydel project, and their cooperation in revitalising the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation or BIMSTEC, are some of these indicators.&nbsp;

The recent joint communiqués between India and Nepal seem to have all the right words and tone for a constructive move forward in their bilateral relations. Immediately after the successive visits of Modi and Oli to Nepal, there has been unprecedented progress in several areas.&nbsp;

Regarding China’s inroads into Nepal, an option for India would be to defend the status quo by attempting to block Nepal’s options to diversify its cooperation with neighbours, through projects such as the infrastructure development by Chinese investment.&nbsp;

India must introduce new economic, developmental and infrastructure initiatives with Nepal that will not only bring tangible benefits to Nepali citizens, but also address the vulnerabilities that will emerge in Nepal as the country engages with China.&nbsp;

As things are, Nepal cannot dispense with its reliance on India. India is and will remain vital for the country in many ways. However, Nepal is now a member of China’s massive BRI, which puts India in a difficult position.&nbsp;

Disregarding India’s traditional muscular diplomacy, PM Modi seems to have been following this line of cooperative diplomacy. The results are evident: the rapport between Modi and Oli, and Nepal’s increasing cooperation in Modi’s initiatives, which would have been impossible just a year ago. 
 
(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-pm-modi-has-changed-tack-cooperated-closely-with-nepal-2687307">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Contrary to conventional notions of a harmonious diplomatic relationship, there is a sharp difference in the way Nepal and India view each other. Following Independence, India emulated Britain’s approach in having a treaty-based relationship with Nepal, which led to Nepal’s grudging acceptance of India’s dominion.

Contrary to conventional notions of a harmonious diplomatic relationship, there is a sharp difference in the way Nepal and India view each other. Following Independence, India emulated Britain’s approach in having a treaty-based relationship with Nepal, which led to Nepal’s grudging acceptance of India’s dominion. To be sure, China’s engagement in Nepal is not new. More importantly—and contrary to how it is portrayed in Nepal—it is not entirely positive. However, the engagement is crucial, since China’s newfound economic power is as yet unmatched. This challenges India’s privileged position in Nepal. Indian Prime Minister Narendra Modi has taken various initiatives and has indicated that he intends to address Nepal’s concerns regarding India. Nepal’s eagerness to engage with China has been of interest to observers and largely misinterpreted as Prime Minister Khadga Prasad Sharma Oli’s strategy to acquire more from India. However, the current approach fits perfectly in Nepal’s long tradition of pursuing a diversified foreign policy and partners, taking advantage of its key geostrategic position. Oli’s government aims to keep Nepal’s relationship with China independent of the one it shares with India. The question to ask is whether Nepal will be able to achieve this, given India’s discomfort with the increasing Chinese proximity. New Delhi was for long perceived in Kathmandu as “hawkish” in dealing with sensitive matters. The most notable instances of this include different river treaties, reluctance to respond to regular border-encroachment complaints, high-structure build-up along the border, inundation complaints, trade and transit crises and embargoes. There are historical reasons that explain the dynamics of the Indo-Nepal bilateral relationship. To maintain a sphere of influence, India needs sufficient soft power, as well as hard power, along with the confidence to act. Indeed, the nature of India-Nepal relations has always been a mixed bag. Due to its provisions and protocols, the 1950 treaty quickly became controversial and set the conflictive tone of the bilateral relationship. The provisions of the 1950 Indo-Nepal Peace and Friendship Treaty constrained Nepal as an ally and a state under India’s security umbrella. Given the asymmetrical size of the two countries, and Nepal’s reservations towards India due to the treaty-based unequal treatment, the open border has always been a crucial area of contention, except for communities and business groups that benefit from it directly. Nepal’s largest trading partner is India (the total trade accounting for 65 per cent), with whom Nepal runs the largest trade deficit. There was an improvement following the amendment of the trade commerce treaty with India in 1996, as exports increased and the deficit dropped. While, on paper, Nepal remains an ally of India, it has constitutionally asserted that its foreign policy is “based on the Charter of the United Nations, non-alignment, principles of Panchsheel (and) international law.” Despite Oli’s “ultranationalist” election rhetoric, he has responded positively to Modi’s and Foreign Minister Sushma Swaraj’s overtures. Modi and Oli have established a relationship of trust, negotiating some important agreements during their visits. The agreement on the controversial Arun III hydel project, and their cooperation in revitalising the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation or BIMSTEC, are some of these indicators. The recent joint communiqués between India and Nepal seem to have all the right words and tone for a constructive move forward in their bilateral relations. Immediately after the successive visits of Modi and Oli to Nepal, there has been unprecedented progress in several areas. Regarding China’s inroads into Nepal, an option for India would be to defend the status quo by attempting to block Nepal’s options to diversify its cooperation with neighbours, through projects such as the infrastructure development by Chinese investment. India must introduce new economic, developmental and infrastructure initiatives with Nepal that will not only bring tangible benefits to Nepali citizens, but also address the vulnerabilities that will emerge in Nepal as the country engages with China. As things are, Nepal cannot dispense with its reliance on India. India is and will remain vital for the country in many ways. However, Nepal is now a member of China’s massive BRI, which puts India in a difficult position. Disregarding India’s traditional muscular diplomacy, PM Modi seems to have been following this line of cooperative diplomacy. The results are evident: the rapport between Modi and Oli, and Nepal’s increasing cooperation in Modi’s initiatives, which would have been impossible just a year ago. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

PM Modi has changed tack, cooperated closely with Nepal

China's massive "Belt and Road Initiative" building push may create debt risks but is also responding to major infrastructure gaps in Asia and could boost global trade, World Bank officials say.

The relatively upbeat assessment of a sometimes controversial programme comes despite the debt crisis now faced by Pakistan, a recipient of massive Chinese loans.

China launched the ambitious plan in 2013 under President Xi Jinping, seeking to link Asia, Europe and Africa with a network of ports, highways and railways.

It has dispersed tens of billions of dollars in loans, often to highly indebted countries, sparking criticism of Beijing for everything from "debt entrapment" to excluding local labour from projects funded by the plan.

But, meeting in Bali this week, officials from the World Bank and International Monetary Fund said the BRI filled important gaps, while acknowledging concerns.

"There are huge opportunities: improved infrastructure means more trade, more investments, higher growth, bringing in landlocked regions," said Caroline Freund, the Bank's director of trade, regional integration and investment climate.

"But there are challenges as well... There are environmental and social risks, there are issues to do with public procurement, and sustaining public debt becomes an issue because these projects are expensive," she added.

The World Bank estimates that BRI-funded infrastructure could boost trade among countries involved by 3.6 percent, and global trade some 2.4 percent.

And officials say it is offering funding in areas where it is sorely needed.

Debt fears

"Several countries, especially in Central Asia and Caucasus have benefitted... in order to improve their infrastructure as well as also to promote additional interregional trade," said Jihad Azour, the IMF's director of the Middle East and Central Asia department.

"Central Asia will benefit from any additional investment that will lead to greater integration."

He called however for "careful" spending, urged "transparent" procurement processes, and warned that countries should maintain "their debt sustainability".

In the last five years, China's direct investment under BRI has surpassed $60 billion, leaving several recipients vulnerable.

The Centre for Global Development, a think-tank, says BRI investments have "significantly" increased the risk of debt crises in eight countries: Mongolia, Laos, Maldives, Montenegro, Pakistan, Djibouti, Tajikistan and Kyrgyzstan.

But Freund said they were the exception, and Chinese loans remained a relatively small part of the total debt burdens of most countries involved in the BRI.

"Most of the countries borrowing from China in this BRI are in a pretty sound fiscal condition and are not in great risk of debt distress," said David Dollar, senior fellow at the Brookings Institution and a former World Bank official.

But for a small number of countries, there are "serious concerns," he acknowledged.

Among them is Pakistan, which relied heavily on BRI funding for a $54-billion project linking its Gwadar port to China.

It now faces a balance-of-payments crisis and sent its finance minister to Bali this week seeking an IMF bailout.

Rising US interest rates are likely to make the situation worse for many countries, because BRI loans are mostly denominated in US dollars.

'Market forces'

Loan recipients who fail to meet their obligations can face serious consequences, with Sri Lanka forced to cede control of a deepwater port financed by the BRI to Beijing.

In August, Malaysia acted preemptively, shelving three China-backed projects, including a $20-billion railway line, that it said it could no longer afford.

"We fully respect Malaysia's decision-making, based on their sustainability situation," Chinese Finance vice-minister Zou Jiayi told a panel at the Bali meeting.

"The Chinese government attaches great importance to the sustainability, we are the creditor," she added.

But, she emphasised, the initiative is not an aid programme.

"It's not like the Marshall plan, it's a development initiative based on the market mechanisms, and driven by market forces," she said.

Beijing's commitment to market forces has been questioned by some however, with most projects financed with BRI money awarded to Chinese companies and built with Chinese labour.

A French treasury report released this week praised the BRI for contributing to areas with serious infrastructure shortfalls, but noted just 3.4 percent of projects financed by China were awarded to foreign companies.

And in Pakistan, it said, 91 percent of the revenue generated by the Gwadar port project over the next 40 years will benefit China.

Zou said the overwhelming reliance on Chinese labour was simply "cost-effective," but acknowledged Beijing could encourage Chinese companies to "take more advantage of the local labour."

The programme has also been criticised for funding politically-driven "white elephants" that are structurally unsound or largely useless.

Speaking in Beijing earlier this year, IMF Chief Christine Lagarde praised the "early indications of progress" under the initiative, but also warned of the need to ensure "that Belt and Road only travels where it is needed."

China's massive "Belt and Road Initiative" building push may create debt risks but is also responding to major infrastructure gaps in Asia and could boost global trade, World Bank officials say.

China's massive "Belt and Road Initiative" building push may create debt risks but is also responding to major infrastructure gaps in Asia and could boost global trade, World Bank officials say. The relatively upbeat assessment of a sometimes controversial programme comes despite the debt crisis now faced by Pakistan, a recipient of massive Chinese loans. China launched the ambitious plan in 2013 under President Xi Jinping, seeking to link Asia, Europe and Africa with a network of ports, highways and railways. It has dispersed tens of billions of dollars in loans, often to highly indebted countries, sparking criticism of Beijing for everything from "debt entrapment" to excluding local labour from projects funded by the plan. But, meeting in Bali this week, officials from the World Bank and International Monetary Fund said the BRI filled important gaps, while acknowledging concerns. "There are huge opportunities: improved infrastructure means more trade, more investments, higher growth, bringing in landlocked regions," said Caroline Freund, the Bank's director of trade, regional integration and investment climate. "But there are challenges as well... There are environmental and social risks, there are issues to do with public procurement, and sustaining public debt becomes an issue because these projects are expensive," she added. The World Bank estimates that BRI-funded infrastructure could boost trade among countries involved by 3.6 percent, and global trade some 2.4 percent. And officials say it is offering funding in areas where it is sorely needed. Debt fears "Several countries, especially in Central Asia and Caucasus have benefitted... in order to improve their infrastructure as well as also to promote additional interregional trade," said Jihad Azour, the IMF's director of the Middle East and Central Asia department. "Central Asia will benefit from any additional investment that will lead to greater integration." He called however for "careful" spending, urged "transparent" procurement processes, and warned that countries should maintain "their debt sustainability". In the last five years, China's direct investment under BRI has surpassed $60 billion, leaving several recipients vulnerable. The Centre for Global Development, a think-tank, says BRI investments have "significantly" increased the risk of debt crises in eight countries: Mongolia, Laos, Maldives, Montenegro, Pakistan, Djibouti, Tajikistan and Kyrgyzstan. But Freund said they were the exception, and Chinese loans remained a relatively small part of the total debt burdens of most countries involved in the BRI. "Most of the countries borrowing from China in this BRI are in a pretty sound fiscal condition and are not in great risk of debt distress," said David Dollar, senior fellow at the Brookings Institution and a former World Bank official. But for a small number of countries, there are "serious concerns," he acknowledged. Among them is Pakistan, which relied heavily on BRI funding for a $54-billion project linking its Gwadar port to China. It now faces a balance-of-payments crisis and sent its finance minister to Bali this week seeking an IMF bailout. Rising US interest rates are likely to make the situation worse for many countries, because BRI loans are mostly denominated in US dollars. 'Market forces' Loan recipients who fail to meet their obligations can face serious consequences, with Sri Lanka forced to cede control of a deepwater port financed by the BRI to Beijing. In August, Malaysia acted preemptively, shelving three China-backed projects, including a $20-billion railway line, that it said it could no longer afford. "We fully respect Malaysia's decision-making, based on their sustainability situation," Chinese Finance vice-minister Zou Jiayi told a panel at the Bali meeting. "The Chinese government attaches great importance to the sustainability, we are the creditor," she added. But, she emphasised, the initiative is not an aid programme. "It's not like the Marshall plan, it's a development initiative based on the market mechanisms, and driven by market forces," she said. Beijing's commitment to market forces has been questioned by some however, with most projects financed with BRI money awarded to Chinese companies and built with Chinese labour. A French treasury report released this week praised the BRI for contributing to areas with serious infrastructure shortfalls, but noted just 3.4 percent of projects financed by China were awarded to foreign companies. And in Pakistan, it said, 91 percent of the revenue generated by the Gwadar port project over the next 40 years will benefit China. Zou said the overwhelming reliance on Chinese labour was simply "cost-effective," but acknowledged Beijing could encourage Chinese companies to "take more advantage of the local labour." The programme has also been criticised for funding politically-driven "white elephants" that are structurally unsound or largely useless. Speaking in Beijing earlier this year, IMF Chief Christine Lagarde praised the "early indications of progress" under the initiative, but also warned of the need to ensure "that Belt and Road only travels where it is needed."

China's Belt and Road tempts states, but comes with risks

Sri Lankan Prime Minister Ranil Wickremesinghe has rejected US' claim that China might set up a "forward military base" at a strategic port it has leased to the communist nation, describing it as "imaginary".

Last year, Colombo had leased the Hambantota port to Beijing for 99 years after it failed to repay a Chinese loan of $ 1.4 billion for the project.

China gaining the control of the port has raised concerns that the country could use the harbour for military purposes.

Addressing a programme at London's Oxford University on Monday, Wickremesinghe said some people are seeing "imaginary Chinese Naval bases in Sri Lanka. Whereas the Hambantota Port is a commercial joint venture between our Ports Authority and China Merchants - a company listed in the Hong Kong Stock Exchange."&nbsp;

"There are no foreign naval bases in Sri Lanka," he emphasised.

His comments came days after US Vice-President Mike Pence alleged China of using "debt diplomacy" to expand its global influence and said that Hambantota "may soon become a forward military base for China's growing blue-water navy".&nbsp;

Several media reports suggested that the deepwater port, which is near a main shipping route between Asia and Europe, is likely to play a major role in China's Belt and Road Initiative (BRI).&nbsp;

The BRI, also known as the Silk Road Economic Belt, is a development strategy proposed by the Chinese government which focuses on connectivity and cooperation between Eurasian countries.

The Chinese government calls the initiative "a bid to enhance regional connectivity and embrace a brighter future". However, other nations, including India, see it as a push by Beijing to take a larger role in global affairs with a China-centred trading network.&nbsp;

India's has been vocal in expressing its opposition to the BRI, which includes the China-Pakistan Economic Corridor (CPEC) that traverses through Pakistan-occupied Kashmir.

Wickremesinghe said Lankan Navy's Southern Command was being relocated in the Hambantota port to control security and "the US Defence Department has been briefed on these developments".&nbsp;

He said Sri Lanka was also concluding a commercial agreement that would see the Airport Authority of India (AAI) taking over the control of the Hambantota airport, which was built with high-interest commercial loan from China.&nbsp;

The Prime Minister said, "In this atmosphere of suspicion, many countries fear that the South China Sea issues can spill over, leading to future militarisation and military competition in the Indian Ocean."

"This has resulted in a number of stakeholders intensifying their interest and presence in the Indian Ocean by expanding their fleets, upgrading their bases, securing access to foreign ports, and aggressive naval posturing via joint exercises, extended sorties, and live-fire drills.

"The Indian Ocean region requires a common understanding that will ensure peace and stability within the region...There is also a need to work towards building a regional framework for both trade and security while ensuring that the region remains free, open and inclusive...The interests of the smaller states are best served by advocating for and upholding a rule-based order in the region," he said.

Sri Lankan Prime Minister Ranil Wickremesinghe has rejected US' claim that China might set up a "forward military base" at a strategic port it has leased to the communist nation, describing it as "imaginary".

Sri Lankan Prime Minister Ranil Wickremesinghe has rejected US' claim that China might set up a "forward military base" at a strategic port it has leased to the communist nation, describing it as "imaginary". Last year, Colombo had leased the Hambantota port to Beijing for 99 years after it failed to repay a Chinese loan of $ 1.4 billion for the project. China gaining the control of the port has raised concerns that the country could use the harbour for military purposes. Addressing a programme at London's Oxford University on Monday, Wickremesinghe said some people are seeing "imaginary Chinese Naval bases in Sri Lanka. Whereas the Hambantota Port is a commercial joint venture between our Ports Authority and China Merchants - a company listed in the Hong Kong Stock Exchange." "There are no foreign naval bases in Sri Lanka," he emphasised. His comments came days after US Vice-President Mike Pence alleged China of using "debt diplomacy" to expand its global influence and said that Hambantota "may soon become a forward military base for China's growing blue-water navy". Several media reports suggested that the deepwater port, which is near a main shipping route between Asia and Europe, is likely to play a major role in China's Belt and Road Initiative (BRI). The BRI, also known as the Silk Road Economic Belt, is a development strategy proposed by the Chinese government which focuses on connectivity and cooperation between Eurasian countries. The Chinese government calls the initiative "a bid to enhance regional connectivity and embrace a brighter future". However, other nations, including India, see it as a push by Beijing to take a larger role in global affairs with a China-centred trading network. India's has been vocal in expressing its opposition to the BRI, which includes the China-Pakistan Economic Corridor (CPEC) that traverses through Pakistan-occupied Kashmir. Wickremesinghe said Lankan Navy's Southern Command was being relocated in the Hambantota port to control security and "the US Defence Department has been briefed on these developments". He said Sri Lanka was also concluding a commercial agreement that would see the Airport Authority of India (AAI) taking over the control of the Hambantota airport, which was built with high-interest commercial loan from China. The Prime Minister said, "In this atmosphere of suspicion, many countries fear that the South China Sea issues can spill over, leading to future militarisation and military competition in the Indian Ocean." "This has resulted in a number of stakeholders intensifying their interest and presence in the Indian Ocean by expanding their fleets, upgrading their bases, securing access to foreign ports, and aggressive naval posturing via joint exercises, extended sorties, and live-fire drills. "The Indian Ocean region requires a common understanding that will ensure peace and stability within the region...There is also a need to work towards building a regional framework for both trade and security while ensuring that the region remains free, open and inclusive...The interests of the smaller states are best served by advocating for and upholding a rule-based order in the region," he said.

Sri Lanka rejects US claims, says no Chinese military base at port

China on Tuesday played down reports of Pakistan's plans to cut down a railway project under the multi-billion dollar CPEC by $ 2 billion, saying Prime Minister Imran Khan has assured his support to the various projects under the flagship Belt and Road Initiative.

Pakistan's Railways Minister Sheikh Rashid recently announced plans to cut the $ 8.2 billion Karachi-Peshawar railway project by about $ 2 billion.

It is the biggest project under the $ 50 billion China Pakistan Economic Corridor (CPEC) which India opposes as it is being laid through Pakistan-occupied Kashmir.

On Sunday, Khan said Pakistan is reviewing the projects under the CPEC to safeguard the interest of the people in Balochistan province.

Khan in the past criticised former prime minister Nawaz Sharif for the lack of transparency and corruption in the CPEC projects.

He said that Balochistan had a number of reservations about the mega project.

Asked about Pakistan's plans to cut down the railway projects over fears of accumulating debt, Chinese Foreign Ministry spokesman Lu Kang told media on Tuesday that the new Pakistan government has expressed its support for the CPEC projects.

"You have only noted some aspects of the report. Recently on the advancement of the CPEC, we have noted that there are different comments and reports coming from the media.

"You can see that the new Pakistani government and Prime Minister (Khan) has made it clear that they will support the advancement of the CPEC," Lu said.

He was apparently referring to the assurances by the new government in Islamabad about the continuation of the CPEC projects during the recent visit of Chinese Foreign Minister Wang Yi to Pakistan.

Lu said the CPEC served the economic and social development and referred to the International Monetary Fund (IMF) report which he said "made it clear that the advancement of the CPEC did not cause any burden to Pakistan".

"The IMF also said the CPEC from a long-term perspective will enhance Pakistan's capacity for the development," he said, adding that all the projects were conceived after extensive consultations with Pakistan.

About the comments by some Pakistan officials to cut down the cost of the projects, he said: "We should view such comments in a comprehensive way. Actually, the advancement of the CPEC is conducive to the inter- 
connectivity and prosperity of the region including Pakistan".

"We hope you can see that the CPEC is very important project of the Belt and Road Initiative (BRI)," Li added.

China had announced after the visit of Wang to Pakistan in September that the CPEC projects will be extended to the western areas of Pakistan, which included Balochistan.

The CPEC is the flagship project of the multi-billion dollar BRI, a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects

China on Tuesday played down reports of Pakistan's plans to cut down a railway project under the multi-billion dollar CPEC by $ 2 billion, saying Prime Minister Imran Khan has assured his support to the various projects under the flagship Belt and Road Initiative.

China on Tuesday played down reports of Pakistan's plans to cut down a railway project under the multi-billion dollar CPEC by $ 2 billion, saying Prime Minister Imran Khan has assured his support to the various projects under the flagship Belt and Road Initiative. Pakistan's Railways Minister Sheikh Rashid recently announced plans to cut the $ 8.2 billion Karachi-Peshawar railway project by about $ 2 billion. It is the biggest project under the $ 50 billion China Pakistan Economic Corridor (CPEC) which India opposes as it is being laid through Pakistan-occupied Kashmir. On Sunday, Khan said Pakistan is reviewing the projects under the CPEC to safeguard the interest of the people in Balochistan province. Khan in the past criticised former prime minister Nawaz Sharif for the lack of transparency and corruption in the CPEC projects. He said that Balochistan had a number of reservations about the mega project. Asked about Pakistan's plans to cut down the railway projects over fears of accumulating debt, Chinese Foreign Ministry spokesman Lu Kang told media on Tuesday that the new Pakistan government has expressed its support for the CPEC projects. "You have only noted some aspects of the report. Recently on the advancement of the CPEC, we have noted that there are different comments and reports coming from the media. "You can see that the new Pakistani government and Prime Minister (Khan) has made it clear that they will support the advancement of the CPEC," Lu said. He was apparently referring to the assurances by the new government in Islamabad about the continuation of the CPEC projects during the recent visit of Chinese Foreign Minister Wang Yi to Pakistan. Lu said the CPEC served the economic and social development and referred to the International Monetary Fund (IMF) report which he said "made it clear that the advancement of the CPEC did not cause any burden to Pakistan". "The IMF also said the CPEC from a long-term perspective will enhance Pakistan's capacity for the development," he said, adding that all the projects were conceived after extensive consultations with Pakistan. About the comments by some Pakistan officials to cut down the cost of the projects, he said: "We should view such comments in a comprehensive way. Actually, the advancement of the CPEC is conducive to the inter- connectivity and prosperity of the region including Pakistan". "We hope you can see that the CPEC is very important project of the Belt and Road Initiative (BRI)," Li added. China had announced after the visit of Wang to Pakistan in September that the CPEC projects will be extended to the western areas of Pakistan, which included Balochistan. The CPEC is the flagship project of the multi-billion dollar BRI, a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects

Different voices coming from Pak on CPEC: China

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative.

The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI), a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects.

Minister for Planning and Development Khusro Bakhtiar told media on Tuesday that the cash-rich kingdom's proposed investments would fall under a separate bilateral arrangement, Dawn news reported.

"Saudi Arabia is not to become a collateral strategic partner in the CPEC. This impression is not true," he said.

A third country can participate in the China-Pakistan Economic Corridor (CPEC) by taking part in the business and investment ventures arising out of the project, Bakhtiar said.

"The framework between China and Pakistan is bilateral and Saudi Arabia is not entering that framework as a third-party investor, rather the base of the CPEC will be broadened and its pace will be expedited," he said.

Last month, Information Minister Fawad Chaudhry said that Saudi Arabia is the third "strategic partner" of the CPEC, soon after Prime Minister Imran Khan returned from his first foreign trip to the kingdom.

Interestingly Chaudhry was sitting with Bakhtiar when he issued clarification that Saudi Arabia participation in the CPEC was not as third partner in the project.

Bakhtiar further said that there was no decision to bring a third country, like Saudi Arabia, under the framework of the CPEC.

He was responding to questions about the possibility of Saudi Arabia becoming part of the Joint Working Groups or Joint Coordination Committee on the CPEC.

Bakhtiar said there could be many offshoots of the CPEC where third countries could be involved in trilateral arrangement for infrastructure development, like China-

Pakistan-Japan, China-Pakistan-Saudi Arabia or China-Pakistan-Germany.

The minister dodged questions when asked how the cost of Main Railway Line (ML-I) had been reduced by $ 2 billion from $ 8.2 billion to $ 6.2 billion as claimed by Railways Minister Shaikh Rasheed Ahmed.

"I have noticed this today that Sheikh Rasheed is making some efforts (to reduce the cost) but not to my knowledge. Nothing has come in front of me to suggest that the cost has come down," he said.

Bakhtiar said the CPEC portfolio currently stands at about $ 50 billion, of which about $ 6 billion was a government-to-government loan and remaining in Independent Power Producers mode mostly in the energy sector. About $ 29 billion worth of projects were currently in progress.

He said the CPEC had far bigger potential than $ 50 billion and would keep expanding with time as new projects come up but the previous government treated and played it like a T-20 match instead of a five-day test series and focused mostly on projects which could be completed during its tenure.

Currently, a Saudi delegation is in Pakistan for initial assessment to capitalise on the Pakistani offer.

India has opposed the CPEC project and protested to China as it is being laid through Pakistan-occupied Kashmir.&nbsp;

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative.

In a U-turn, Pakistan has announced that its close ally Saudi Arabia would not join the $ 50 billion China-Pakistan Economic Corridor, days after Islamabad said Riyadh will be the third "strategic partner" of China's flagship project, the Belt and Road Initiative. The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI), a pet project of President Xi Jinping aimed at enhancing China's influence around the world through China-funded infrastructure projects. Minister for Planning and Development Khusro Bakhtiar told media on Tuesday that the cash-rich kingdom's proposed investments would fall under a separate bilateral arrangement, Dawn news reported. "Saudi Arabia is not to become a collateral strategic partner in the CPEC. This impression is not true," he said. A third country can participate in the China-Pakistan Economic Corridor (CPEC) by taking part in the business and investment ventures arising out of the project, Bakhtiar said. "The framework between China and Pakistan is bilateral and Saudi Arabia is not entering that framework as a third-party investor, rather the base of the CPEC will be broadened and its pace will be expedited," he said. Last month, Information Minister Fawad Chaudhry said that Saudi Arabia is the third "strategic partner" of the CPEC, soon after Prime Minister Imran Khan returned from his first foreign trip to the kingdom. Interestingly Chaudhry was sitting with Bakhtiar when he issued clarification that Saudi Arabia participation in the CPEC was not as third partner in the project. Bakhtiar further said that there was no decision to bring a third country, like Saudi Arabia, under the framework of the CPEC. He was responding to questions about the possibility of Saudi Arabia becoming part of the Joint Working Groups or Joint Coordination Committee on the CPEC. Bakhtiar said there could be many offshoots of the CPEC where third countries could be involved in trilateral arrangement for infrastructure development, like China- Pakistan-Japan, China-Pakistan-Saudi Arabia or China-Pakistan-Germany. The minister dodged questions when asked how the cost of Main Railway Line (ML-I) had been reduced by $ 2 billion from $ 8.2 billion to $ 6.2 billion as claimed by Railways Minister Shaikh Rasheed Ahmed. "I have noticed this today that Sheikh Rasheed is making some efforts (to reduce the cost) but not to my knowledge. Nothing has come in front of me to suggest that the cost has come down," he said. Bakhtiar said the CPEC portfolio currently stands at about $ 50 billion, of which about $ 6 billion was a government-to-government loan and remaining in Independent Power Producers mode mostly in the energy sector. About $ 29 billion worth of projects were currently in progress. He said the CPEC had far bigger potential than $ 50 billion and would keep expanding with time as new projects come up but the previous government treated and played it like a T-20 match instead of a five-day test series and focused mostly on projects which could be completed during its tenure. Currently, a Saudi delegation is in Pakistan for initial assessment to capitalise on the Pakistani offer. India has opposed the CPEC project and protested to China as it is being laid through Pakistan-occupied Kashmir.

In U-turn, Pakistan says Saudi Arabia will not be part of CPEC

Talks between China and Sri Lanka for a free trade agreement have hit major hurdles, mainly because Beijing will not agree to Colombo's demand for a review of the deal after 10 years, Sri Lanka's top negotiator said.

China has invested billions of dollars building ports and roads and power stations in the Indian Ocean island nation just off the southern toe of India as part of its Belt and Road Initiative to increase its trade and other connections across Asia and beyond.

But concerns have grown in recent months that such investments can drive the country of 21 million people deeper into debt and undermine its sovereignty, prompting greater scrutiny of deals with China.

China's exports to Sri Lanka dwarf the trade that goes in the other direction, leaving Colombo with a big deficit with Beijing.

Sri Lanka's chief trade negotiator K.J. Weerasinghe said this week that Colombo was insisting on a right to review the free trade pact after ten years, but China was not ready to agree that.

Ministerial-level discussions about an agreement have not been held since March last year. Lower-level discussions between officials have made little progress, according to Weerasinghe.

"The talks have come to a standstill. China wants to remove the review clause," Weerasinghe told Reuters. Beijing was opposed to such an option because it wanted longer-term stability, he said.

China’s commerce ministry did not respond to Reuters requests for comment.

The review clause that Sri Lanka wants would allow it to change some of the deal terms if they were hurting the island nation’s local businesses.

ANOTHER CONTENTIOUS ISSUE

Weerasinghe said another point of contention was that China wanted zero tariffs on 90 per cent of goods the two countries sold to each other as soon as an agreement is signed while Colombo would rather it started with zero tariffs on only half of the products concerned and expanded gradually over 20 years.

China has been pushing for free trade pacts with countries in the region and last year sealed an agreement with the Maldives that drew criticism from opposition political groups in the tropical islands' nation. They said it had been rushed through parliament with less than an hour of debate.

Sri Lanka has previously said it wanted more time to negotiate the free trade deal with China as it is concerned about the economic impact of a rushed deal on its economy.

Sri Lanka imported $4.2 billion worth of Chinese goods in 2016, mostly raw materials for garments, machines and electronics, metals, transport equipment and chemicals. Its exports to the world's second-largest economy were just $211 million the same year, which included textiles, tea and vegetables, footwear and rubber.

The 2017 figures for China trade have still not been released by the Sri Lankan authorities.

The trade deficit with China accounted for nearly half of the nation's total deficit in 2016, adding pressure on the country’s current account deficit, central bank data showed.

Sri Lanka’s foreign debt rose nearly 17 per cent to 4.72 trillion rupees ($30 billion) last year, a fifth of that coming from loans from China to finance the massive construction programme across the island.

Colombo is separately negotiating a trade pact with India, but that is also moving slowly because Sri Lankan businesses fear they will face competition from a flood of cheap goods made by Indian firms. &nbsp

China has invested billions of dollars building ports and roads and power stations in the Indian Ocean island nation just off the southern toe of India as part of its Belt and Road Initiative to increase its trade and other connections across Asia and beyond

Talks between China and Sri Lanka for a free trade agreement have hit major hurdles, mainly because Beijing will not agree to Colombo's demand for a review of the deal after 10 years, Sri Lanka's top negotiator said. China has invested billions of dollars building ports and roads and power stations in the Indian Ocean island nation just off the southern toe of India as part of its Belt and Road Initiative to increase its trade and other connections across Asia and beyond. But concerns have grown in recent months that such investments can drive the country of 21 million people deeper into debt and undermine its sovereignty, prompting greater scrutiny of deals with China. China's exports to Sri Lanka dwarf the trade that goes in the other direction, leaving Colombo with a big deficit with Beijing. Sri Lanka's chief trade negotiator K.J. Weerasinghe said this week that Colombo was insisting on a right to review the free trade pact after ten years, but China was not ready to agree that. Ministerial-level discussions about an agreement have not been held since March last year. Lower-level discussions between officials have made little progress, according to Weerasinghe. "The talks have come to a standstill. China wants to remove the review clause," Weerasinghe told Reuters. Beijing was opposed to such an option because it wanted longer-term stability, he said. China’s commerce ministry did not respond to Reuters requests for comment. The review clause that Sri Lanka wants would allow it to change some of the deal terms if they were hurting the island nation’s local businesses. ANOTHER CONTENTIOUS ISSUE Weerasinghe said another point of contention was that China wanted zero tariffs on 90 per cent of goods the two countries sold to each other as soon as an agreement is signed while Colombo would rather it started with zero tariffs on only half of the products concerned and expanded gradually over 20 years. China has been pushing for free trade pacts with countries in the region and last year sealed an agreement with the Maldives that drew criticism from opposition political groups in the tropical islands' nation. They said it had been rushed through parliament with less than an hour of debate. Sri Lanka has previously said it wanted more time to negotiate the free trade deal with China as it is concerned about the economic impact of a rushed deal on its economy. Sri Lanka imported $4.2 billion worth of Chinese goods in 2016, mostly raw materials for garments, machines and electronics, metals, transport equipment and chemicals. Its exports to the world's second-largest economy were just $211 million the same year, which included textiles, tea and vegetables, footwear and rubber. The 2017 figures for China trade have still not been released by the Sri Lankan authorities. The trade deficit with China accounted for nearly half of the nation's total deficit in 2016, adding pressure on the country’s current account deficit, central bank data showed. Sri Lanka’s foreign debt rose nearly 17 per cent to 4.72 trillion rupees ($30 billion) last year, a fifth of that coming from loans from China to finance the massive construction programme across the island. Colombo is separately negotiating a trade pact with India, but that is also moving slowly because Sri Lankan businesses fear they will face competition from a flood of cheap goods made by Indian firms.

China's free trade talks with Sri Lanka hit major hurdles

International Monetary Fund Managing Director Christine Lagarde said on Thursday that China's Belt and Road initiative is showing signs of progress but warned of potential debt risks for partner countries involved in joint projects.

One challenge is to ensure that Belt and Road only travels where it is needed, and the second is to focus on sound fiscal policies, Lagarde said in prepared comments in a speech at a Belt and Road conference in Beijing on Thursday.

"Fortunately, we know that China's leadership is aware of these potential risks - as well as the proven strategies that can help address the challenges," Lagarde said.

President Xi Jinping's Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa. China has pledged $126 billion for the ambitious plan.

In his opening speech to the annual Boao Forum on Tuesday - Asia's equivalent of Davos - Xi said Belt and Road pacts had been made over the last five years with more than 80 countries and international bodies.

Lagarde said the initiative can provide much needed infrastructure financing to partner countries, but should not be considered "a free lunch" by those nations.

Belt and Road ventures can lead to a "problematic" increase in debt, potentially restricting other spending as debt service obligations rise, which could create balance of payment challenges.

In countries where public debt is already high, careful management of financing terms is critical, in order to protect China and partner governments from entering into pacts that will cause financial difficulties in the future, Lagarde warned.

President Xi Jinping's Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa.

International Monetary Fund Managing Director Christine Lagarde said on Thursday that China's Belt and Road initiative is showing signs of progress but warned of potential debt risks for partner countries involved in joint projects. One challenge is to ensure that Belt and Road only travels where it is needed, and the second is to focus on sound fiscal policies, Lagarde said in prepared comments in a speech at a Belt and Road conference in Beijing on Thursday. "Fortunately, we know that China's leadership is aware of these potential risks - as well as the proven strategies that can help address the challenges," Lagarde said. President Xi Jinping's Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting China by land and sea to Southeast Asia, Central Asia, the Middle East, Europe and Africa. China has pledged $126 billion for the ambitious plan. In his opening speech to the annual Boao Forum on Tuesday - Asia's equivalent of Davos - Xi said Belt and Road pacts had been made over the last five years with more than 80 countries and international bodies. Lagarde said the initiative can provide much needed infrastructure financing to partner countries, but should not be considered "a free lunch" by those nations. Belt and Road ventures can lead to a "problematic" increase in debt, potentially restricting other spending as debt service obligations rise, which could create balance of payment challenges. In countries where public debt is already high, careful management of financing terms is critical, in order to protect China and partner governments from entering into pacts that will cause financial difficulties in the future, Lagarde warned.

IMF's Lagarde says Belt and Road progressing but warns of debt risks

In an apparent dig at China's Belt and Road Initiative (BRI), the US today voiced its concern over the financing structure of connectivity projects, cautioning nations may compromise their sovereignty if they could not sustainably pay back their loans.

"We're concerned, with the financing structures for connectivity projects," Alex Wong, Deputy Assistant Secretary of State for East Asian and Pacific Affairs told reporters during a news conference here when asked how the Trump administration is going to really propose the alternative for the infrastructure support as against those by China.

"Because if they're not structured in a way in which the nations of the region can sustainably pay them back, over time, you will see that tends to compromise their sovereignty," Wong said.

"We're concerned with how projects are conceived of and implemented because we want these projects to be economically feasible. We want them to be connected with the economies of these nations in a smart way that increases their GDP, truly drives regional integration, and doesn't weigh them down," he said.

The American interest, he said, is in infrastructure and connectivity throughout the Indo-Pacific.

"We're less concerned with where the financing or from which country financing for infrastructure across the region comes from. We are more concerned with how that financing for infrastructure is structured, and how the particular infrastructure projects are conceived of and implemented," he said.

For decades, the US has been advocating for strong connectivity principles, facilitating good connectivity projects, preparing the investment frameworks and the investment environments in the region to drive private capital to these types of projects, he said.

"In the Indo-Pacific, the Asian Development Bank says that there's about a $1.7 trillion per year investment gap for infrastructure, what they truly need to encourage the type of GDP growth been seen for a number of years in the Indo-Pacific. But that gap won't be filled by only state-backed financing, he said.

"It can only be filled by getting private sector money off the sidelines," Wong said. Currently, there is $50 trillion in private sector capital and cash instruments that are uninvested around the world.

"If we can get that into the Indo-Pacific to invest in quality best-value infrastructure, that'll be to the benefit of many of the countries in the region, to our benefit, as the GDP of the region grows and our trade and our investment grow," he said.

But there is a problem right now in the Indo-Pacific, Wong said. In the developed world, for every one dollar in state financing that goes to infrastructure, one gets two dollars in private capital. But in the Indo-Pacific, for every one dollar in state financing, one only gets 30 cents of private capital into these projects.

"There's a gap there, and we need to help the nations of the region ensure that they can access that private capital, craft the projects in a way that does attract investment money, ensure that their regulatory environments and their bidding processes are attractive to private capital.

"Then if we can do that, we can fill that infrastructure gap, provide the alternatives that are needed by the nations of the region, so that infrastructure is done right and truly ensures economic growth," Wong said.

In an apparent dig at China's Belt and Road Initiative (BRI), the US today voiced its concern over the financing structure of connectivity projects

In an apparent dig at China's Belt and Road Initiative (BRI), the US today voiced its concern over the financing structure of connectivity projects, cautioning nations may compromise their sovereignty if they could not sustainably pay back their loans. "We're concerned, with the financing structures for connectivity projects," Alex Wong, Deputy Assistant Secretary of State for East Asian and Pacific Affairs told reporters during a news conference here when asked how the Trump administration is going to really propose the alternative for the infrastructure support as against those by China. "Because if they're not structured in a way in which the nations of the region can sustainably pay them back, over time, you will see that tends to compromise their sovereignty," Wong said. "We're concerned with how projects are conceived of and implemented because we want these projects to be economically feasible. We want them to be connected with the economies of these nations in a smart way that increases their GDP, truly drives regional integration, and doesn't weigh them down," he said. The American interest, he said, is in infrastructure and connectivity throughout the Indo-Pacific. "We're less concerned with where the financing or from which country financing for infrastructure across the region comes from. We are more concerned with how that financing for infrastructure is structured, and how the particular infrastructure projects are conceived of and implemented," he said. For decades, the US has been advocating for strong connectivity principles, facilitating good connectivity projects, preparing the investment frameworks and the investment environments in the region to drive private capital to these types of projects, he said. "In the Indo-Pacific, the Asian Development Bank says that there's about a $1.7 trillion per year investment gap for infrastructure, what they truly need to encourage the type of GDP growth been seen for a number of years in the Indo-Pacific. But that gap won't be filled by only state-backed financing, he said. "It can only be filled by getting private sector money off the sidelines," Wong said. Currently, there is $50 trillion in private sector capital and cash instruments that are uninvested around the world. "If we can get that into the Indo-Pacific to invest in quality best-value infrastructure, that'll be to the benefit of many of the countries in the region, to our benefit, as the GDP of the region grows and our trade and our investment grow," he said. But there is a problem right now in the Indo-Pacific, Wong said. In the developed world, for every one dollar in state financing that goes to infrastructure, one gets two dollars in private capital. But in the Indo-Pacific, for every one dollar in state financing, one only gets 30 cents of private capital into these projects. "There's a gap there, and we need to help the nations of the region ensure that they can access that private capital, craft the projects in a way that does attract investment money, ensure that their regulatory environments and their bidding processes are attractive to private capital. "Then if we can do that, we can fill that infrastructure gap, provide the alternatives that are needed by the nations of the region, so that infrastructure is done right and truly ensures economic growth," Wong said.

Connectivity projects in Indo-Pacific could compromise nations' sovereignty: US

Aligning with India&#39;s posture, a top American general today said China&#39;s Belt and Road Initiative could improve the Communist country&#39;s &quot;military posture&quot; while Gwadar Port has the potential increase its strategic presence in the Indian Ocean. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;

&quot;China is pursuing long-term, steady economic growth that bolsters its international influence and access to energy resources,&quot; General Joseph Votel, Commander of the US Central Command, told members of the Senate Foreign Relations Committee during a Congressional hearing. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;

&quot;Its Belt and Road Initiative (BRI), which includes the China Pakistan Economic Corridor (CPEC), could serve as a stabilising, profit-generating project in the region, but could also improve China&#39;s military posture,&quot; he said.

Votel said the collection of infrastructure projects provides China access to Gwadar Port in Pakistan which has the potential to increase its strategic presence in the Indian Ocean. Indian has been raising the same concern repeatedly.

&quot;China also recently established its first overseas military base adjacent to the Bab al Mandeb (BAM) in Djibouti. &nbsp;While Beijing claims both locations support peacekeeping and humanitarian operations, the new military base and port allow China to project forces more permanently within the region and influence strategically valuable trade waterways,&quot; he said.

China, Votel said, also seeks to increase its economic and diplomatic cooperation with Iran.

The lifting of &nbsp;UN sanctions under the Joint Comprehensive Plan of Action (JCPOA) opened the path for Iran to resume membership application to the Shanghai Cooperation Organisation, a Eurasian political, economic, and security organization. This, along with the existing BRI cooperation between the two nations, increases China&#39;s ties to Iran, he said.

China considers its relationship with the GCC states critical for its current economic needs, he added.

The Gulf States provide approximately one-third of China&#39;s oil, and Qatar is its single largest supplier of natural gas, Votel said.

The general said like Russia, China has sought to arbitrate some conflicts in the region, offering to mediate between Saudi Arabia and Iran. While China will continue to develop its relationships with nations in the Middle East, Beijing will likely maintain its stance of avoiding a major role in ongoing conflicts, he noted.

Votel said an increasingly assertive China is not only testing Russia&#39;s dominance in the economic and security arenas of Central Asia but also posing challenges to US influence.&nbsp;

&quot;China seeks to capitalise on regional concerns over what it perceives as waning US influence and support,&quot; he said. &nbsp;Toward this end, Beijing is building and strengthening trade, infrastructure, defense, and political relationships across the Middle East, Central and South Asia, he added.&nbsp;

The lifting of UN sanctions under the JCPOA opened the path for Iran to resume membership application to the Shanghai Cooperation Organisation, a Eurasian political, economic, and security organization

Aligning with India's posture, a top American general today said China's Belt and Road Initiative could improve the Communist country's "military posture" while Gwadar Port has the potential increase its strategic presence in the Indian Ocean. "China is pursuing long-term, steady economic growth that bolsters its international influence and access to energy resources," General Joseph Votel, Commander of the US Central Command, told members of the Senate Foreign Relations Committee during a Congressional hearing. "Its Belt and Road Initiative (BRI), which includes the China Pakistan Economic Corridor (CPEC), could serve as a stabilising, profit-generating project in the region, but could also improve China's military posture," he said. Votel said the collection of infrastructure projects provides China access to Gwadar Port in Pakistan which has the potential to increase its strategic presence in the Indian Ocean. Indian has been raising the same concern repeatedly. "China also recently established its first overseas military base adjacent to the Bab al Mandeb (BAM) in Djibouti. While Beijing claims both locations support peacekeeping and humanitarian operations, the new military base and port allow China to project forces more permanently within the region and influence strategically valuable trade waterways," he said. China, Votel said, also seeks to increase its economic and diplomatic cooperation with Iran. The lifting of UN sanctions under the Joint Comprehensive Plan of Action (JCPOA) opened the path for Iran to resume membership application to the Shanghai Cooperation Organisation, a Eurasian political, economic, and security organization. This, along with the existing BRI cooperation between the two nations, increases China's ties to Iran, he said. China considers its relationship with the GCC states critical for its current economic needs, he added. The Gulf States provide approximately one-third of China's oil, and Qatar is its single largest supplier of natural gas, Votel said. The general said like Russia, China has sought to arbitrate some conflicts in the region, offering to mediate between Saudi Arabia and Iran. While China will continue to develop its relationships with nations in the Middle East, Beijing will likely maintain its stance of avoiding a major role in ongoing conflicts, he noted. Votel said an increasingly assertive China is not only testing Russia's dominance in the economic and security arenas of Central Asia but also posing challenges to US influence. "China seeks to capitalise on regional concerns over what it perceives as waning US influence and support," he said. Toward this end, Beijing is building and strengthening trade, infrastructure, defense, and political relationships across the Middle East, Central and South Asia, he added.

BRI could improve Chinese military posture, says top US general

Chinese President Xi Jinping today said he pays &quot;high attention&quot; to strengthening strategic ties with Sri Lanka, as Beijing beefed up plans to build a Maritime Silk Road project in India&#39;s backyard -- the Indian Ocean.

In a message to congratulate Sri Lanka on its 70th anniversary of Independence from British rule, Xi told his counterpart Maithripala Sirisena that China is willing to work with it for better development of strategic cooperative partnership between the two countries.

&quot;I pay high attention to the development of China-Sri Lanka relations, and I am willing to make concerted efforts with President Sirisena to push the China-Sri Lanka strategic cooperative partnership of sincere mutual assistance and long-standing friendship to keep achieving greater development in the better interest of the two countries and its people,&quot; he said. 
 
Xi also said that China and Sri Lanka have achieved &quot;fruitful results&quot; by their display of &quot;pragmatic cooperation&quot; within the framework of the joint construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road (MSR).

India has expressed reservations over MSR as it has security implications for it in Indian Ocean. MSR is part of the Belt and Road Initiative (BRI).

Proposed by China in 2013, the BRI aims to build trade and infrastructure networks connecting Asia with Europe and Africa based on ancient land and maritime trade routes enhancing China&#39;s global influence.

Chinese Premier Li Keqiang too congratulated his Sri Lankan counterpart Ranil Wickramasinghe on the occasion.

Within the framework of the initiative on construction of the Silk Road Economic Belt and the MSR, China wishes to consolidate the traditional friendship with Sri Lanka, strengthen mutual political trust, deepen practical cooperation and push bilateral relations to a new level, he said in the message.

China has invested over USD eight billion in Sri Lanka over the years for various projects, including Hambantota port which it acquired on 99 years lease as a debt swap. It is also building?the Colombo port city project, where Sri Lanka plans to establish an international financial city.

China is in the process of firming up its presence in the Indian Ocean with a string of ports which included Hambantota and Djibouti in the Horn of Africa.

Beijing is also watching warily the developments in Maldives since it recently plunged into a crisis following a Supreme Court ruling which ordered the release of opposition leaders including former President Mohamed Nasheed.

The Supreme Court&#39;s decision has put a question mark on incumbent President Abdulla Yameen who is widely regarded as pro-China and signed several key deals including a Free Trade Agreement (FTA) with Beijing.

Xi Jinping told his counterpart Maithripala Sirisena that China is willing to work with it for better development of the strategic cooperative partnership between the two countries

Chinese President Xi Jinping today said he pays "high attention" to strengthening strategic ties with Sri Lanka, as Beijing beefed up plans to build a Maritime Silk Road project in India's backyard -- the Indian Ocean. In a message to congratulate Sri Lanka on its 70th anniversary of Independence from British rule, Xi told his counterpart Maithripala Sirisena that China is willing to work with it for better development of strategic cooperative partnership between the two countries. "I pay high attention to the development of China-Sri Lanka relations, and I am willing to make concerted efforts with President Sirisena to push the China-Sri Lanka strategic cooperative partnership of sincere mutual assistance and long-standing friendship to keep achieving greater development in the better interest of the two countries and its people," he said. Xi also said that China and Sri Lanka have achieved "fruitful results" by their display of "pragmatic cooperation" within the framework of the joint construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road (MSR). India has expressed reservations over MSR as it has security implications for it in Indian Ocean. MSR is part of the Belt and Road Initiative (BRI). Proposed by China in 2013, the BRI aims to build trade and infrastructure networks connecting Asia with Europe and Africa based on ancient land and maritime trade routes enhancing China's global influence. Chinese Premier Li Keqiang too congratulated his Sri Lankan counterpart Ranil Wickramasinghe on the occasion. Within the framework of the initiative on construction of the Silk Road Economic Belt and the MSR, China wishes to consolidate the traditional friendship with Sri Lanka, strengthen mutual political trust, deepen practical cooperation and push bilateral relations to a new level, he said in the message. China has invested over USD eight billion in Sri Lanka over the years for various projects, including Hambantota port which it acquired on 99 years lease as a debt swap. It is also building?the Colombo port city project, where Sri Lanka plans to establish an international financial city. China is in the process of firming up its presence in the Indian Ocean with a string of ports which included Hambantota and Djibouti in the Horn of Africa. Beijing is also watching warily the developments in Maldives since it recently plunged into a crisis following a Supreme Court ruling which ordered the release of opposition leaders including former President Mohamed Nasheed. The Supreme Court's decision has put a question mark on incumbent President Abdulla Yameen who is widely regarded as pro-China and signed several key deals including a Free Trade Agreement (FTA) with Beijing.

Xi says improving China-Lanka ties have his 'high attention'