China’s Belt and Road Initiative, Building Global Infrastructure Regarding Trade, It’s a Major Competition

In 2024, China’s Belt and Road Initiative (BRI) saw significant financial engagement. Preliminary data indicates that China invested approximately $92.4 billion in various projects across the 149 countries involved in the BRI. China’s Belt and Road Initiative (BRI) encompasses numerous large-scale infrastructure projects across the globe. Here are some of the most significant ones:

1. China-Pakistan Economic Corridor (CPEC): This is one of the flagship projects of the BRI, connecting Gwadar Port in Pakistan to China’s Xinjiang region. It includes highways, railways, and energy projects. It’s China’s largest investment via the Belt and Road Initiative involving an estimated investment of over $62 billion. 
2. East Coast Rail Link (ECRL) in Malaysia: This project aims to connect the east and west coasts of Peninsular Malaysia, significantly enhancing trade and transportation
3. Mombasa-Nairobi Standard Gauge Railway (SGR) in Kenya: This railway line connects the port city of Mombasa to Nairobi, improving cargo and passenger transport
4. Port of Piraeus in Greece: Managed by COSCO Shipping, this port has become a major hub for maritime trade between Europe and Asia
5. Yamal LNG Project in Russia: This project involves the development of liquefied natural gas facilities in the Russian Arctic, with significant Chinese investment
6. Khorgos Gateway in Kazakhstan: This dry port on the China-Kazakhstan border is a key logistics hub for the BRI, facilitating trade between China and Europe

In 2024, the United States invested approximately $60 billion  in global infrastructure projects. This investment was part of the broader effort to counterbalance China’s Belt and Road Initiative and to support sustainable development in various regions. The investments focused on key areas such as renewable energy, digital infrastructure, and transportation networks. Notable projects included expanding renewable energy facilities in Southeast Asia and enhancing digital connectivity in Africa. One of the largest infrastructure projects the United States is involved with abroad is the Power Africa  initiative. Launched in 2013, this initiative aims to double access to electricity in sub-Saharan Africa. The U.S. government has committed over $7 billion to this project, leveraging more than $54 billion in private sector commitments. Power Africa focuses on developing renewable energy sources, improving energy efficiency, and expanding access to electricity across the continent. Back home, one of the largest infrastructure projects currently underway in the United States is the Gordie Howe International Bridge. This massive project, with an estimated construction cost of $4.5 billion, will connect Detroit, Michigan, to Windsor, Ontario, Canada. Once completed, it will be the longest cable-stayed bridge in North America, significantly enhancing cross-border travel and trade.

Another notable project is the Southeast Connector in the Dallas-Fort Worth area, (where this author lives) which aims to widen and improve major highways to ease traffic congestion and promote trade.

For China, the new kid on the block is the Chancay mega-port which is a significant new shipping terminal located in Chancay, Peru, about 60 kilometers north of Lima. This port was developed by Cosco Shipping Ports Chancay Perú S.A., a collaboration between the Chinese state-owned company COSCO Shipping Ports and the Peruvian company Volcan. The port is part of China’s Belt and Road Initiative and aims to enhance trade between South America and the Asia-Pacific region.  It was officially inaugurated on November 14, 2024, in a virtual ceremony attended by Chinese President Xi Jinping and Peruvian President Dina Boluarte. The project represents a significant investment of approximately $3.5 billion. The Chancay port is expected to boost economic growth by facilitating more efficient trade routes. However, there have been concerns from local residents about the lack of opportunities for them and potential environmental impacts.

Also worth noting, in 2024, China continued to make substantial investments in Africa under the Belt and Road Initiative (BRI). Key areas of investment included:

1. Infrastructure: China invested heavily in building and upgrading over 10,000 kilometers of railways, nearly 100,000 kilometers of highways, and numerous bridges and ports1. Notable projects included the Standard Gauge Railway in Kenya and the Mambilla Hydroelectric Plant in Nigeria2.
2. Green Development: There was a significant focus on renewable energy projects, such as the expansion of the Kariba Hydroelectric Station in Zimbabwe2. These projects aim to diversify Africa’s energy portfolio and promote sustainable growth.
3. Digital Economy: China also invested in building a backbone communications network of 150,000 kilometers in Africa, enhancing digital connectivity across the continent.
4. Healthcare and Livelihood Projects: Investments were made in healthcare, biogas promotion, greenhouse cultivation, and other projects aimed at improving the quality of life for local communities.

These investments are part of China’s broader strategy to foster economic growth and strengthen trade ties with African nations.

Over the past decade, the United States has also invested significantly in Africa’s infrastructure. The U.S. government, through various initiatives and programs, has allocated around $8 billion annually for assistance to Africa.  This funding supports a wide range of projects, including infrastructure development, health programs, agricultural productivity, and economic growth. 

In the news lately, the Panama Canal. China has made significant investments in the Panama Canal area, primarily through the Hong Kong-based Hutchison Ports company, which operates the ports of Balboa and Cristobal at either end of the canal, which the U.S. sees as a threat.  Hutchison Ports, a subsidiary of CK Hutchison Holdings, secured a 25-year lease extension in 2021 to continue managing these ports. Although there is no concrete evidence to date that China has a major influence over the canal, there are concerns within the Trump administration that things could develop for the worse if conflict between China and the US came into play. The United States originally invested around $375 million to construct the Panama Canal, which was completed in 1914. Since then, the U.S. has continued to invest in the canal’s maintenance and expansion, though specific recent investment figures are not readily available. The canal remains a critical asset for U.S. trade and national security, handling about 40% of U.S. seaborne container trade.

As the tit-for-tat on tariffs in the ongoing trade war between the U.S. and China keeps center stage with no reprieve in sight, or anything remotely resembling an olive branch from either government, it will be crucial to both Beijing and Washington to find ways to not only keep but continue to build allies. As China uses its deep pockets to secure global allies via improved infrastructure, Washington on the other hand is choosing to close the bank accounts in various global initiatives like USAID, which has helped to secure allies around the world for decades. The U.S. rebuilding the “Riviera of Gaza” is not predicated upon reality,  nor is the purchase of Greenland, taking back the Panama Canal, making Canada the 51^st U.S. state, or colonizing Mars in 2025. (Musk is too busy right now anyway dismantling the U.S. government) Four years from now, February  9^th, 2025, when the new reign of geopolitical terror is over, it will be interesting to see who the remaining allies are to the U.S.