China’s experience of infrastructure megaprojects in Eurasia and Africa: Successes and contradictions

Tetiana Stoiian

China’s experience of infrastructure megaprojects in Eurasia and Africa: Successes and contradictions

Tetiana Stoiian

Abstract

The research relevance is determined by the unprecedented scale of Chinese infrastructure initiatives, their potential impact on regional development and the geopolitical balance of power, as well as the controversial nature of their socio-economic and environmental consequences in the context of current global transformations. The study aims to provide a critical analysis of the successes and contradictions of Chinaʼs infrastructure initiatives. Synthesis, comparative analysis, critical analysis, modelling, structural-functional and systematisation methods were used in the study. The results of the study demonstrate the significant potential of Chinese infrastructure megaprojects to stimulate economic growth, and infrastructure development and deepen regional integration in Eurasia and Africa. However, despite the declared benefits, these initiatives are characterised by several contradictions and challenges. Large-scale Chinese investments carry risks of debt dependence for recipient countries, as they are often provided on non-transparent and unfavourable terms. In addition, the implementation of megaprojects is accompanied by high corruption risks, a lack of proper accountability mechanisms, and limited involvement of local resources and companies. This minimises potential economic benefits for the countries involved and hinders technology transfer and local capacity development. Chinese infrastructure projects are also often associated with negative social and environmental impacts, such as forced resettlement of communities, ecosystem degradation, and pollution. To overcome these contradictions, recommendations have been developed to introduce mechanisms for transparency, accountability, active involvement of local companies and ensuring a fair distribution of economic benefits among all stakeholders. The practical significance of the study lies in the development of recommendations for optimising Chinese infrastructure megaprojects, given the interests of the participating countries, which can be used to improve cooperation strategies with China and ensure the sustainability, mutual benefit and inclusiveness of these initiatives

Keywords

investment projects; technology transfer; fair distribution of benefits; accountability; international cooperation; geopolitical influence

References

[1] Afzal, J., Afzal, M.A., & Nishtar, Z. (2023). Completion of the ten years of the China-Pakistan Economic Corridor (CPEC) and its economical goals. Inverge Journal of Social Sciences, 2(4), 23-29. doi: 10.1022/ijss. v2i4.58.

[2] Austvik, O.G. (2014). The Norwegian petroleum experience as an example? The International Shale Gas and Oil Journal, 2(2), 18-28.

[3] Basu, P., & Janiec, M. (2021). Kenyaʼs regional ambitions or Chinaʼs Belt-and-Road? News media representations of the Mombasa-Nairobi Standard Gauge Railway. Singapore Journal of Tropical Geography, 42(1), 45-64. doi: 10.1111/ sjtg.12350.

[4] Brautigam, D., Huang, Y., & Acker, K. (2020). Risky business: New data on Chinese loans and Africaʼs debt problem (No. 03/2020). Retrieved from https://www.econstor.eu/handle/10419/248244.

[5] Coenen, J., Bager, S., Meyfroidt, P., Newig, J., & Challies, E. (2021). Environmental governance of Chinaʼs belt and road initiative. Environmental Policy and Governance, 31(1), 3-17. doi: 10.1002/eet.1901.

[6] CSIS. (2023). Brief by Benjamin Jensen, Daniel F. Runde, and Thomas Bryja. The waterfallʼs shadow in the Mekong Region. Retrieved from https://www.csis.org/analysis/waterfalls-shadow-mekong-region.

[7] Ericsson, M., Löf, O., & Löf, A. (2020). Chinese control over African and global mining – past present and future. Mineral Economics, 33(1-2), 153-181. doi: 10.1007/s13563-020-00233-4.

[8] G20 Osaka Leadersʼ Declaration Preamble. (2019, June). Retrieved from https://www.consilium.europa.eu/ media/40124/final_g20_osaka_leaders_declaration.pdf.

[9] Gangte, L. (2020). The debt-trap diplomacy revisited: A case study on Sri Lankaʼs Hambantota port. Artha Journal of Social Sciences, 19(2), 53-66. doi: 10.12724/ajss.53.4.

[10] Heeks, R., Ospina, A.V., Foster, C., Gao, P., Han, X., Jepson, N., Schindler, S., & Zhou, Q. (2024). Chinaʼs digital expansion in the Global South: Systematic literature review and future research agenda. The Information Society, 40(2), 69-95. doi: 10.1080/01972243.2024.2315875.

[11] Infrastructure Transparency Initiative (CoST). (2024). Retrieved from http://surl.li/sppbw.

[12] Krykavskyy, Y., Fihun, N., & Nycz-Wojtan, S. (2019). The dependence of China belt and road initiative efficiency to the level of logistics infrastructure development. Economics, Entrepreneurship, Management, 6(2), 32-40. doi: 10.23939/ eem2019.02.032.

[13] Lin, K.C., & Kaplan, A. (2023). Great power competition and middle power strategies: Economic statecraft in the Asia- Pacific Region. New York: Springer.

[14] Lisinge, R.T. (2020). The Belt and Road Initiative and Africaʼs regional infrastructure development: Implications and lessons. Transnational Corporations Review, 12(4), 425-438. doi: 10.1080/19186444.2020.1795527.

[15] Liu, S.L., Fan, H.R., Liu, X., Meng, J., Butcher, A.R., Yann, L., Yang, K.F., & Li, X.C. (2023). Global rare earth elements projects: New developments and supply chains. Ore Geology Reviews, 157, article number 105428. doi: 10.1016/j. oregeorev.2023.105428.

[16] Liu, Z., Schindler, S., & Liu, W. (2020). Demystifying Chinese overseas investment in infrastructure: Port development, the Belt and Road Initiative and regional development. Journal of Transport Geography, 87, article number 102812. doi: 10.1016/j.jtrangeo.2020.102812.

[17] Local Content Digest. (2022). Retrieved from https://ncdmb.gov.ng/lcdm/LocalContentDigestH222.pdf.

[18] Lokanathan, V. (2020). Chinaʼs belt and road initiative: Implications in Africa. ORF Issue Brief, 395.

[19] Lymar, V.V. (2021). Chinaʼs geopolitical interests within the framework of the “One Belt, One Road” initiative. In Priorities of financial and economic management: Materials of the International scientific and practical conference (pp. 24-26). Odesa: East European Centre for Scientific Research.

[20] Malalo, H. (2018). Kenya arrests two top officials for suspected corruption over new $3 billion railway. Retrieved from https://www.reuters.com/article/idUSKBN1KW07G/.

[21] Mapping the Belt and Road initiative: This is where we stand. (2018). Retrieved from https://merics.org/en/tracker/ mapping-belt-and-road-initiative-where-we-stand.

[22] Morgan, P. & Ghiselli, A. (2023). Chinese workers on Africaʼs infrastructure projects: The link with host political regimes. Retrieved from http://surl.li/sppdv.

[23] Nepal scraps mega hydropower deal with China. (2017). Retrieved from https://www.aa.com.tr/en/energy/hydro/ nepal-scraps-mega-hydropower-deal-with-china-/14528.

[24] Oulmakki, O., Rodrigue, J.P., Hernandez Meza, A., & Verny, J. (2023). The implications of Chinese investments on Mediterranean trade and maritime hubs. Journal of Shipping and Trade, 8(1), article number 28. doi: 10.1186/s41072- 023-00157-6.

[25] Perminov, V.O., & Chihira, A.S. (2022). The African vector of Chinaʼs foreign policy: Tradition and modernity. Philosophy and Political Science in the Context of Modern Culture, 14(29), 93-99. doi: 10.15421/352211.

[26] Petry, J. (2023). Beyond ports, roads and railways: Chinese economic statecraft, the Belt and Road Initiative and the politics of financial infrastructures. European Journal of International Relations, 29(2), 319-351. doi: 10.1177/13540661221126615.

[27] Recommendation of the Council on Guidelines on Anticorruption and Integrity in State-Owned Enterprises. (2019, May). Retrieved from https://one.oecd.org/document/C/MIN(2019)5/FINAL/en/pdf.

[28] Shyrshova, Y.O. (2021). Chinese investment flows to Africa. In Economic, legal and managerial-technological dimensions of the present: A youth perspective: Materials of the international scientific and practical conference (pp. 225-229). Dnipro: University of Customs and Finance.

[29] Strange, A. (2023). Chinese Global Infrastructure. Cambridge: Cambridge University Press.

[30] The China Pakistan economic corridor facing serious difficulties. (2023). Retrieved from https://www.geopolitica. info/china-pakistan-economic-corridor/.

[31] Ugwu, V.U. (2020). Chinaʼs policy towards Africa. (Doctoral dissertation, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine).

[32] Weng, L., Xue, L., Sayer, J., Riggs, R. A., Langston, J. D., & Boedhihartono, A.K. (2021). Challenges faced by Chinese firms implementing the “Belt and Road Initiative”: Evidence from three railway projects. Research in Globalization, 3, article number 100074. doi: 10.1016/j.resglo.2021.100074.

[33] Wignaraja, G., Panditaratne, D., Kannangara, P., & Hundlani, D. (2020). Chinese investment and the BRI in Sri Lanka. London: Chatham House.

[34] Wong, T. (2023). Belt and Road Initiative: Is Chinaʼs trillion-dollar gamble worth it? Retrieved from https://www.bbc. com/news/world-asia-china-67120726.

[35] Yahaya, I.I. (2022). Nigeria-China relations and rail transport infrastructure development in Nigeriaʼs Fourth Republic. (Doctoral dissertation, Kwara State University, Malete, Nigeria).

[36] Yermekbayev, A., Sarybayev, M., & Suriguga, C. (2022). China-Kazakhstan strategic partnership and bilateral economic cooperation. Central Asiaʼs Affairs, 85(1), 18-27.

[37] Yu, H. (2020). Motivation behind Chinaʼs ʼone belt, one roadʼinitiatives and establishment of the Asian infrastructure investment bank. In Chinaʼs new global strategy (pp. 3-18). London: Routledge.

[38] Zakari, A., & Khan, I. (2022). Boosting economic growth through energy in Africa: The role of Chinese investment and institutional quality. Journal of Chinese Economic and Business Studies, 20(1), 1-21. doi: 10.1080/ 14765284.2021.1968709.

[39] Zhang, C., Zhang, M., & Xiao, C. (2022). From traditional infrastructure to new infrastructure: A new focus of Chinaʼs Belt and Road Initiative diplomacy? Eurasian Geography and Economics, 63(3), 424-443. doi: 10.1080/15387216.2022.2039740.

[40] Zhou, W. (2021). The essence of Chinaʼs “One Belt, One Road” strategy. In Collection of scientific papers LOGOS (pp. 22-26). Paris: La Fidelta. doi: 10.36074/logos-30.04.2021.v1.06.

Suggested citation

Stoiian, T. (2024). China’s experience of infrastructure megaprojects in Eurasia and Africa: Successes and contradictions. Foreign Affairs, 34(1), 88-97. https://doi.org/10.46493/2663-2675.34(1).2024.88