n the first half of this year, Commerce Ministry data show, Beijing signed about $64 billion in new, mostly construction contracts, a jump of 33% from 2018
International News: China’s Belt and Road Initiative is seeing a revival lately, after a year of rumblings from developing nations that President Xi Jinping had set them a debt trap in the guise of funding massive infrastructure projects.
In the first half of this year, Commerce Ministry data show, Beijing signed about $64 billion in new, mostly construction contracts, a jump of 33% from 2018. Back then, Malaysia was complaining of deals reached under a scandal-stricken ousted leader and Indonesia was gearing up for elections in which both sides played up nationalist credentials….
What caused this change of heart?
For a start, financial conditions in emerging Asia, which still follows the Federal Reserve’s easing cycle, have improved to a one-year high. With the Fed cutting interest rates again, emerging markets can feel a bit more relaxed about taking on more debt.
More importantly, as world trade growth plunges to a decade low, infrastructure spending is the only way left to lift emerging economies. Where will the money come from? China is offering…
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