Brazil became the second BRICS country, after India, to decide not to join China’s Belt and Road Initiative

Tags: International Relations

China’s Belt and Road Initiative:

Why in news:

• Brazil became the second BRICS country, after India, to decide not to join China’s Belt and Road Initiative. Brazil will cooperate with Chinese investors in alternative ways.
• The Brazilian government believes this decision will help avoid further complications in relations with the United States.

What is China’s Belt and Road Initiative:

• The Belt and Road Initiative (BRI) is a Chinese-led infrastructure project that aims to improve connectivity, trade, and economic growth across Asia, Africa, and Europe: 
• The BRI is also known as the One Belt One Road Initiative or the New Silk Road, a reference to the ancient Silk Road trade routes that connected China to the Mediterranean. 
• China's President Xi Jinping announced the BRI in 2013, and the planned completion date is 2049. 

How it's financed?

• The BRI is financed by the Asian Infrastructure Investment Bank (AIIB), Silk Road Fund, China Investment Corporation, policy banks, and other sources. 
• India’s concerns about China's Belt and Road Initiative (BRI):
• Sovereignty:India is concerned about the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-occupied Kashmir, a region India claims as its own. 
• Transparency:India has questioned the transparency and processes of the BRI. 
• Financial viability:India is concerned about the financial viability of the BRI projects, and whether they will create debt traps for smaller countries. 
• Environmental and social risks:India is concerned that the BRI projects may create environmental and social risks for the host countries. 
• Growing Chinese influence:India perceives China's growing influence in the Indian Ocean region as a security threat.