Interpreting Chinese Infrastructure Financing along the Belt and Road

The American Interest published on 4 April 2019 an analysis titled "Misdiagnosing the Chinese Infrastructure Push" by Deborah Brautigam, Johns Hopkins University School of Advanced International Studies.

The author argues that the focus of China's financing of infrastructure projects along the Belt and Road has an economic, not military, purpose. For developing countries that borrow from China, the challenge is to overcome the rent-seeking and cronyism. The Achilles Heel of China's bank financing model is that it relies heavily on Chinese companies to develop projects together with host country officials. This creates strong incentives for kickbacks and inflated project costs.