The China's International
Cooperation Policy and The
Belt and Road Initiative
(BRI);
A Latin American Perspective
Roberto Hernández Hernández
University of Guadalajara
Introduction
 China's international cooperation is clearly related with
its foreign policy and the nation's project of its leaders.
 It is a way of defining their identity in the international
system domain.
 In recent years China has significantly increased
international aid and investment, especially in Asia,
Africa and Latin America.
 Currently the Belt and Road Initiative (BRI) is the
backbone of China's international cooperation.
International Cooperation: Key Concepts
 Definition of the UN: (Article 55 of the OC) ... create the conditions of
stability and well-being necessary for peaceful and friendly relations
between nations, based on respect for the principle of equal rights
and self-determination the villages…
 ... is a collaborative tool that supports development processes
through the transfer of technical and financial resources among
various actors of the international system …
 International Development Cooperation (ICD):
 Traditional
 Recent
 Official Development Assistance (ODA). Coordinates: OECD.
 In the framework of the UN:
 Millennium Development Goals (2000-2015).
 Sustainable Development Objective (2015-2030).
Top 10 Largest Donors of Foreign Aid in the World (ODA)
(Billion US$)
Country
2012
2015
23.53
31.8
2
United States
United Kingdom
12.46
18.7
3
Japan
11.19
9.32
4
France
10.6
9.23
5
Germany
10.44
17.78
6
5.45
5.81
7
Netherland
United Arab Emirates
5.2
4.39
8
Sweden
3.95
7.09
9
Canada
3.9
2.29
Rank
1
10 Spain
3.81
Sources OECD: official development assistance (ODA)
1.6
China’s Perspective
- China participate in the schemes described above... but
also:
- It defines its own scheme of International “Cooperation”;
called, foreign aid.
- Foreign aid --- has been designed by Chinese
government to assist poorer countries, in the context of
South-South cooperation.
- CID - for public goods issues, China accept the
double track.
The China’s foreign aid official data
 "The White Paper of 2014": 14,410 million dollars from
2010 to 2012.
 $ 4,657.3 million (36.2 percent): creation of small-scale
social welfare projects; Technical cooperation and
development of human resources, material assistance
and humanitarian emergency assistance.
 1,046.2 million dollars (8.1 percent) of interest-free loans
to build public facilities and other projects to improve the
people's living conditions.
 $ 7.17 billion (55.7 percent) to carry out large and
medium-scale manufacturing and infrastructure projects,
as well as to supply complete equipment, machinery and
electronic products.
Figure 1. Distribution of China's Foreign Assistance Funds according to Projected Fields, 2010-2012
Industry
3.6%
Agriculture
2%
Human resources
development cooperation
5.8%
Humanitarian aid
0.4%
Others
0.8%
Social and public
infrastructure
27.6%
Good and materials
15%
Economic infrastructure
44.8%
Source: The People’s Republic of China. Information Office of the State Council. 2014. China's Foreign Aid (2014).
[http://news.xinhuanet.com/english/china/2014-07/10/c_133474011.htm] Accessed in May 2016.
Figure 2. Distribution of China's Foreign Assistance Funds according to the Income Level of Recipient
Countries, 2010-2012
Upper-middle-income
countries
12.3%
Others
5.4%
Least Developed countries
52.1%
Lower-middle-income
countries
21.2%
Other low-income
countries
9%
Source: The People’s Republic of China. Information Office of the State Council. 2014. China's Foreign Aid (2014).
[http://news.xinhuanet.com/english/china/2014-07/10/c_133474011.htm] Accessed in May 2016.
Figure 3. Geographical Distribution of China's Foreign Assistance Funds, 2010-2012
Oceania
4.2%
Latin America and the
Caribbean
8.4%
Others
3.4%
Asia
30.5%
Africa
51.8%
Europe
1.7%
Source: The People’s Republic of China. Information Office of the State Council. 2014. China's Foreign Aid (2014).
[http://news.xinhuanet.com/english/china/2014-07/10/c_133474011.htm] Accessed in May 2016.
Belt and Road Initiative (BRI)
One Belt, One Road (OBOR)
Economic Belt of the Silk Road and
The Route of the Silk Maritime of the XXI Century
 To Chinese Government, the BRI has become the main
platform for international cooperation. This includes
more than 60 countries on three continents; Its roads
depart from China, pass through Central Asia and reach
Africa and Europe. The Maritime Silk Road could
connect 20 countries of Asia, Africa, the Middle East and
Europe.
 Construction of major infrastructure works, including
ports, railways and highways
 Financing: $ 40 billion, more AIIB with an initial capital of
100 billion dollars raised from 57 founding members.
BELT AND ROAD INITIATIVE
(BRI)
 In addition, the BRI (OBOR) cooperation scheme does
not only support infrastructure projects; But also
considers the economic development more
comprehensive that include the chains of supply that
relate the global markets; For long-term projects such
as superhighways and railway lines, China raises the
need for numerous technical arrangements (as basic
as unifying the width of railway lines), as well as
administrative and security arrangements.
BRI and Cooperation
 Cooperation is a fundamental concept to BRI’s; it gives
meaning and unity to the project.
 In the joint communique of leaders round table (Beijing
May,15), the concept is referred 44 times, in the main forms of
international cooperation, such as:
 - Development and cooperation;
 - Multilateral, Bilateral, North-South, South-South, and
Triangular cooperation;
 - Conectivity cooperation;
 - Economic, industrial and financial cooperation;
 - Besides deepen, promoting, strengthen cooperation
cooperation.
Financial Support
 At the recent Belt and Road Forum (The Beijing Miting,
May 14-15), Xi Jingping, announced an additional $124
billion in funding for the OBOR initiative, including loans,
grants and $8.7 billion in assistance to developing
countries.
 According to Chinese state media, some $1 trillion has
already been invested in OBOR, with another several
trillion due to be invested over the next decade.
Ongoing BRI projects
 The effort has already made some practical achievements:
 - A 260-mile railway to conect eight Asia Countries: $6 billion. The
new rail links with Laos and Thailand and high-speed-rail projects in
Indonesia.
 - Building power plants in Pakistan to address chronic electricity
shortages: $46 billion worth of investment .
 - China-Pakistan Economic Corridor (CPEC): 57 billion. This project
includes the modernization of Gwandar Port, which offers China a
shortest parth to the oil-rich Middle East, Africa and mosto of
Westerner hemisphere, besides promising to open up remote
landlocked Xinjiang.
 The Andhra Pradesh State power plant (India): 160 million with AIIB
resources.
Ongoing BRI projects
 - China has signed bilateral cooperation agreements related
to the BRI project with Hungary, Mongolia, Russia, Tajikistan,
and Turkey.
 - A number of projects are under way, including a train
connection between eastern China and Iran that may be
expanded to Europe.
 - China’s Ningbo Shipping Exchange is collaborating with the
Baltic Exchange on a container index of rates between China
and the Middle East, the Mediterranean, and Europe. More
than 200 enterprises have signed cooperation agreements for
projects along BRI’s routes.
 - Chinese planners are mapping out train lines from Budapest
to Belgrade, Serbia, providing another artery for Chinese
goods flowing into Europe through a Chinese-owned port in
Greece.
Ongoing BRI projects
 Through these projects China creates new markets for
its contruction companies and firms producing
industrialized goods, sufering industrialized productive
overcapacity. Besides, and no less important,Beijing
creates strong diplomatic relationships.
 The massive infrastructure projects, along with others
related to foreign aid projects, are the backbone of the
geo-economic and geopolitical Chinese agenda.
Chinese Overseas Foreign Direct
Investments
 According with China’s Ministry of Commerce
(MOFCOM), China’s OFDI is mainly concentrated in
Asia (largely in Hong Kong), although invest has
increased significantly in Latin America and Africa over
the past years.
 The official Chinese statistics only indicates the initial
destination of investment. Like many companies from
many countries, some Chinese firms initially invest in
tax havens or offshore financial centers where there is
minimal or not tax, such as Hong Kong o Cayman
Islands, Then these companies reinvests this some
money in other destinations, such as Africa and Latin
America, through their subsidiaries in these offshore
BRI… Latin America Perspective
 In the face of BRI Chinese project, what could be the
options for regions that are not specifically mentioned in
this proposal, as is the case in Latin America?
 In this respect it should be noted that the BRI (OBOR) is
not a fixed plan, but is an open and flexible initiative,
from which it can be interpreted that projects in any
region or country would be able to anchor with the
resources available in the Chinese financial institutions.
Nowadays, Chinese sources includes a railroad
construction in South America, as part of BRI.
BRI… Latin America Perspective
 The Asian Infrastructure Investment Bank (AIIB),
announced to mid May, 2017, its approval to the
incorporation of Chile as a member of the entity.
 Besides Chile, the Bank announced the entry of Bolivia,
Bahrain, Cyprus, Greece, Romania and Samoa; bringing
the total number of members up to 77.
China-Latin America Trade
 In 2016, trade relations between China and Latin
American countries reached a total value of 216,600
md, a reduction of 8.4% compared with the previous
year (China Customs Administration).
 Exports: 113,900 md.
 Imports: 102,700 md.
 Surplus: 11,200 md.
Conclusions
 Such as the great powers in other stages of capitalist
development, China is currently seeking international
leadership based on its economic rise.
 China’s international cooperation does not follow the
criteria of international organizations, as such as the
OECD. China, without opposing directly to
international practices, is generating its own
institutional structure through which can directly
allocate its financial and technological resources to
the ICD. An example is the BRI.
 China gives aid, as a support to combat poverty in all
its manifestations, but it considers it is not a definitive
solution. The Chinese leadership believes that the
development must be based on the policies of each
country; for this reason, China alludes to its own
experience: poverty is an internal issue that China has
been solving itself.