The Intelligence from The Economist The belt buckles up: China’s grand plan slims
Mar 1, 2023
Kerry Richmond-Jones, a finance and economics writer, and Mathieu Favas, finance correspondent, delve into China's evolving Belt and Road Initiative, which is now focusing on profitable projects rather than sprawling infrastructure. They discuss how recent global energy shifts force a balance between urgent decarbonization and financial viability. Additionally, the success of the TV show 'The Chosen' is explored, highlighting its unique storytelling and mass appeal across diverse audiences, reshaping cultural conversations around faith.
AI Snips
Chapters
Transcript
Episode notes
Varied Projects
- China financed projects ranging from the Mecca Metro in Saudi Arabia to a new city in Malaysia.
- These were built by Chinese firms, often with a guaranteed profit.
Systemic Issues
- Chinese lending often involved state-run banks and construction firms.
- This system benefited both parties and gave China diplomatic influence, but lacked risk assessment for builders.
Construction Incentives
- Chinese construction companies profited regardless of project success, leading to unsustainable lending.
- This required China to halt bank lending to control its construction firms.