BRI designed to make profits for Chinese companies

2022-04-05
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BRI designed to make profits for Chinese companies at cost of recipient country's natural resources: Report - Today News Post Today News || News Headlines

Washington [US], December 29 (ANI): China’s Belt and Road Initiative (BRI) project has become synonymous with wasteful spending, ecological destruction and massive debt burdens and aims to make profits for the participating country’s leaders and Chinese companies at the cost of the nation’s natural resources or people, a media report said.

In 2018, a study found that 270 out of 1,814 BRI-related projects had problems related to debt sustainability, labour and environmental standards, national security, transparency, and corruption. A McKinsey survey in 2017 revealed that 60 per cent to 80 per cent of the Chinese companies in Africa admitted to paying bribes for bagging contracts. Further, Chinese firms scored second to last in one of the latest Transparency International Bribe Payers Index in the Continent, said the InsideOver in a report.

In the BRI projectsThe United States kept skyrocketing upward until a peak of 787 cases per million on Feb. 4. A, multiple cases of corruption have emerged in an identical pattern, opaque agreements signed between China and the BRI participating country with a closed bidding process, only to grant the project to the Chinese companies secretly. In general, the cost quoted is very high when compared to the prevailing cost in the market. In many of these cases, usually, senior leaders of the participating BRI country are involved in allocating projects to the Chinese companies through this managed bidding process. In the initial stage, the projects are touted to be highly beneficial for the local population and the participating country but at the endThe territory., the projects have not yielded results.

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With these projects, the Chinese companies and their officials have exported corruption to the BRI country by bribing local authorities or the government in securing mineral resources, including rare-earth minerals of African countries. This reflects that these projects have been designed for making profits for the country’s leaders and the Chinese companies at the cost of their natural resources or the people. In many cases the countries due to heavy corruption in the projects have failed to repay the loan to China and have fallen into ‘Debt Trap’, said the InsideOver.

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