Rep. Ami Bera Suggests U.S. Alternative to China's BRI

The Facts -

U.S. Offers an Alternative to China's Belt and Road Initiative

Today, U.S. Representative Ami Bera, M.D. (CA-06), Ranking Member on the House Foreign Affairs Indo-Pacific Subcommittee, shared his views in an op-ed in The Indian Express. He suggests how the U.S. can provide a reliable alternative to China's Belt and Road Initiative and enhance strategic partnerships for global prosperity and security.

Read Representative Bera's full op-ed here.

China’s Belt and Road Initiative (BRI) promotes a China-centered development model lacking terms on human rights, transparency, or market principles. While it offers flexible cooperation, this model carries risks for participating nations. The U.S. must present a compelling alternative emphasizing transparency, legal frameworks, and sustainable economic models.

BRI projects often result in significant financial obligations, creating dependencies on China and granting it leverage over host countries. China prefers renegotiating loans over debt forgiveness, unlike the World Bank and IMF, which offer more lenient terms for debt-ridden nations.

The Hambantota Port in Sri Lanka illustrates China's lending practices. In 2017, Sri Lanka leased a 70% stake in the port to a Chinese company for 99 years for $1.12 billion, which was used for short-term debt repayments. This deal highlighted the economic strain and sovereignty concerns arising from such agreements.

The Hambantota Port, part of China's strategy to secure trade routes in the Indian Ocean, is among 101 port projects globally. Ten of these are strategically located in the Indo-Pacific, potentially usable for naval purposes, thereby extending China's geopolitical influence.

To counter China's influence, the U.S. International Development Finance Corporation (DFC) plays a crucial role. It committed $500 million to develop the West Container Terminal in Colombo, boosting Sri Lanka’s economy and creating over 40,000 jobs. Unlike China-based projects, DFC focuses on strategic and transparent investments.

The U.S. investments prioritize transparency and strategic interests, avoiding the opaque terms of some China-backed projects. However, the DFC must be reauthorized by Congress next year to continue its efforts. This reauthorization is essential to maintain the momentum in promoting sustainable investments and conveying America's commitment to transparent and mutually beneficial development worldwide.

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