Politics
How Chinese Financing is Fueling Megaprojects Around the World
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How Chinese Financing is Fueling the World’s Megaprojects
On a mountaintop a few miles north of the bustling streets of Harare, Zimbabwe, a curving, modern complex is beginning to take shape. This building, once completed, will be the home of the African country’s parliament, and the centerpiece of a new section of the capital city.
Aside from the striking design, there’s another unique twist to this development — the entire $140 million project is a gift from Beijing. At first glance, gifting a country a new parliament building may seem extravagant, but the project is a tiny portion of China’s $270 billion in “diplomacy spending” since 2000.
AidData, a research lab at the W&M Global Research Institute, has compiled a massive database of Chinese-backed projects spanning from 2000–2017. In aggregate, it creates a comprehensive look at China’s efforts to grow its influence in countries around the world, particularly in Africa and South Asia.
Beijing has ramped up the volume and sophistication of its public diplomacy overtures, […] but infrastructure as a part of its financial diplomacy dwarfs Beijing’s other public diplomacy tools.
– Samantha Custer, Director of Policy Analysis, AidData
Below, we’ll look at three diplomacy spending hotspots around the world, and learn about key Chinese-funded megaprojects, from power plants to railway systems.
1. Pakistan
In 2015, Chinese President Xi Jingping visited Islamabad to inaugurate the China-Pakistan Economic Corridor (CPEC), kicking off a $46 billion investment that has transformed Pakistan’s transportation system and power grid. CPEC is designed to cement the strategic relationship between the two countries, and is a portion of China’s massive One Belt, One Road (OBOR) initiative.
One of the largest projects financed by China was the Karachi Nuclear Power K2/K3 project. This massive power generation project is primarily bankrolled by China’s state-owned Exim Bank which has kicked in over $6.6 billion over three phases of payments.
Billions of dollars in Chinese capital has also funded everything from highway construction to renewable energy projects across Pakistan. Pakistan’s youth unemployment rate sits as high as 40%, so jobs created by new infrastructure investments are a welcome prospect. In 2014, Pakistan had the highest public approval rating of China in the world, with nearly 80% respondents holding a favorable view of China.
2. Ethiopia
Ethiopia has seen a number of changes within its borders thanks to Chinese financing. This is particularly evident in its capital, Addis Ababa, where a slew of transportation projects — from new ring roads to Sub-Saharan Africa’s first metro system — transformed the city.
One of the most striking symbols of Chinese influence in Addis Ababa is the futuristic African Union (AU) headquarters. The $200 million complex was gifted to the city by Beijing in 2012.
Though Ethiopia is a clear example of Chinese investment transforming a country’s infrastructure, a number of other African nations have experienced a similar influx of money from Beijing. This financing pipeline has increased dramatically in recent years.
3. Sri Lanka
In the wake of political turmoil, Sri Lanka is increasingly looking to China for loans. From 2000 to 2017, over $12 billion in loans and grants have poured into the deeply-indebted country.
Perhaps the most contentious symbol of the relationship between the two countries is a port on the south coast of the island nation, at a strategic point along one of the world’s busiest shipping lanes. The Hambantota Port project — which was completed in 2011 — followed a now familiar path. Eschewing an open bidding process, Beijing’s government financed the project and hired a state-owned firm to construct the port, primarily using Chinese workers.
By 2017, Sri Lanka’s government was burdened by debt the previous administration had taken on. After months of negotiations, the port was handed over with the land around it leased to China for 99 years. This handover was a strategic victory for China, which now has a shipping foothold within close proximity of its regional rival, India.
John Adams said infamously that a way to subjugate a country is through either the sword or debt. China has chosen the latter.
– Brahma Chellaney
Playing the Long Game
Africa’s economic rise will likely be a major contributor to global growth in coming years. Already, six of the 10 fastest growing economies in the world are located in Africa. China is also the top trading partner on the continent, with the United States sitting in third place.
OBOR spending has also earned China plenty of influence in the rest of Asia as well. If the ambitious megaproject continues along its current trajectory, China will be the central player in a more prosperous, interconnected Asia.
Public Opinion
Charted: How Democrats and Republicans View Government Agencies
Predictably, results diverge when both Democrats and Republicans are asked to rate key government agencies in the United States.
How Democrats and Republicans View Government Agencies
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Forget the presidential race, the partisan divide in America can also be seen by how Democrats and Republicans feel about key government agencies.
We visualize the net favorability ratings of 16 federal government agencies, based on respondent party affiliation.
To find this data, Pew Research Center surveyed more than 10,000 adults, between March 13-19, 2023. View their methodology page for more details about the survey, the questions asked, and the results obtained.
Republicans Don’t Like How the CDC Handled the Pandemic
The division in net favorability is deepest for three federal government agencies. While the CDC garnered a net favorability rating of 65 from Democrats, more Republicans rated the agency unfavorably, leading to a net favorability rating of -32.
Similarly, with the EPA and the Department of Education, the difference in net favorability between the two voting sides is as high as 70–80 points.
Federal Agency | Republican Net Favorability Rating | Democrat Net Favorability Rating |
---|---|---|
🔬 CDC | -32 | 65 |
🌿 EPA | -15 | 62 |
📚 Department of Education | -36 | 32 |
🚗 Department of Transportation | -18 | 46 |
💉 Health and Humans Services | -8 | 55 |
💰 Federal Reserve | -20 | 31 |
🕵️ FBI | -15 | 43 |
💼 IRS | -35 | 13 |
💼 Social Security Admin | 14 | 52 |
🕵️♂️ CIA | -8 | 30 |
⚖️ Justice Department | -10 | 23 |
🛡️ Homeland Security | 4 | 27 |
📮 USPS | 48 | 67 |
🚀 NASA | 58 | 73 |
🏞️ Park Service | 72 | 80 |
🎖️ Veterans Affairs | 25 | 32 |
Pew Research Center notes that Republicans didn’t always view the CDC quite so unfavorably, though a direct comparison is impossible.
Nevertheless, per the source, in March 2020, 84% of surveyed Republicans expressed positive views of the CDC’s performance. By October 2022, just 32% said the CDC had done an excellent or good job of handling the pandemic.
Meanwhile, there are a few agencies the two sides do agree on: the National Park Service, the Postal Service, and NASA.
And they both agree on Veterans Affairs as well: though neither share a particularly high opinion of the organization.
Finally, Democrats consistently rate all sixteen agencies on the survey more favorably than Republicans, showing consistency about how each side views the government in general.
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