The Economics of China’s Enormous Belt & Road Initiative

This video was made possible by our Patreon community! ❤️
See new videos early, participate in exclusive Q&As, and more!
➡️ / economicsexplained
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
China's Belt and Road initiative is set to be the most influential economic development project in recent history. It’ll be an investment measured in trillions, connecting dozens of nations with roads, rail lines, shipping routes, and most important of all: trade deals.
But for all of the impressive figures, there’s an equally concerning list of problems centered around the nation that looks to be the ringmaster of this whole project.
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Enjoyed the video? Comment below! 💬
⭑ Subscribe to Economics Explained 👉 bit.ly/sub2ee
⭑ Enjoyed? Hit the like button! 👍
Q&A Streams on EEII (2nd channel) → / @economicsisepic
✉️ Business Enquiries → [e-mail]
Follow EE on social media:
Twitter 🐦 → / economicsex
Facebook → / economicsex
Instagram → / economicsex. .
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Sources & Citations: bit.ly/ee-sources3
#BeltAndRoad #ChinaBRI #China
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
EE Fan Exclusive Offer:
Sign-up for Acorns! 👉 www.acorns.com/ee (after registration, Acorns will deposit $5 in your account to help you get started with investing!)
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
ECONOMICS EXPLAINED IS MADE POSSIBLE BY OUR PATREON COMMUNITY 👊🙏
Support EE by becoming a Patron today! 👉 / economicsexplained
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Morgon Goranson, Andy Potanin, Wicked Pilates, Tadeáš Ursíny, Logan, Angus Clydesdale, Michael G Harding, Hamad AL-Thani, Conrad Reuter, Tom Szuszai, Ryan Katz, Jack Doe, Igor Bazarny, Ronnie Henriksen, Irsal Mashhor, LT Marshall, Zara Armani, Bharath Chandra Sudheer, Dalton Flanagan, Andrew Harrison, Hispanidad, Michael Tan, Michael A. Dunn, Alex Gogan, Mariana Velasque, Bejomi, Sugga Daddy, Matthew Collinge, Kamar, Kekomod, Edward Flores, Brent Bohlken, Bobby Trusardi, Bryan Alvarez, EmptyMachine, Snuggle Boo Boo ThD, Christmas

[@EconomicsExplained]

Thanks as always for watching :D See new videos early, participate in exclusive Q&As, and more! www.patreon.com/EconomicsExplained

[@Helpie114]

Thanks for the time and effort 😁👍

[@blanckgod9642]

really like your videos about the econimes of countries are you doing one about vietnam

[@zyansheep]

Hello! Love your videos!

[@lesleylee3755]

Hate to point out that, Taiwan should not be lightened up on the map on the cover,for the sake of comment section...

[@themongolsarecoming_9437]

I can't thank you enough during this time I was going to recommend you a list of how to grow your channel this was my top concern. The time had come that after the geopolitical mess of the pandemic ,people would circle back to the belt and road. I have not watched the video yet but I am praying saying to God that it should be neutral all videos take a side. If yours doesn't you would see the largest growth in history like the Chinese in 1995 .oh I speak A LOT

[@realdanksta2237]

You left out an important political aspect. China imports and exports a lot of material and products by sea but the problem with that is that those shipping lanes have to pass through or near countries that are allied with the US which makes the Chinese economy vulnerable to a naval blockade. The Belt and Road initiative can decrease the reliance of the chinese economy on those shipping lanes.

[@shaneben8745]

The problem with that though is that it is quite often cheaper transporting goods by sea then land. So it would be a back up option sure, but the majority of goods would still come by sea

[@dashua1735]

That's why China is expanding their navy

[@QuietJagung]

@@shaneben8745 Another important reason is speed. It takes 2 weeks by train versus 4 to 8 weeks by sea depending on which part of Europe. BRI is revival of the ancient silk road to return trades to vibrancy of the past (relatively speaking). With modern transportation, the trade between Europe, Middle East, Africa and China, Japan, Korea, etc will rival that of East and West coast of US. It's so obvious.

[@bobby1019]

I think he usually tries to avoid talking about things from a political angle.

[@bananesalee7086]

Anyway, with that crisis, we can see how this is not going to be publicly acceptable from the west as most consumer goods come from China. That will be a very bad PR move because consequenced can be directly felt by citizens unlike war on middle east

[@jacobarmour6325]

Europe: tries to colonise china China 150 years later: *uno reverse card*

[@shivanshna7618]

East European company.

[@triadwarfare]

The difference is that Chinese propaganda fuels hate towards foreigners

[@RaghunandanReddyC]

The difference is, Western Europe colonized China. China is going after Eastern Europe.

[@flaminmongrel6955]

Major difference they wanna colonise places that never harmed them I'm from India they make regular threats to my country and make new claim every decade on a different territory.

[@smokiedapoo2]

China colonized many other nations long before Europeans came in with bigger weapons. So don’t make past Europeans out to be the big baddies.

[@fosterslover]

I really appreciate the non-biased approach you take when talking about China.

[@simplefun471]

Yeah there is a lot of anti China bias on KZbin these days, I’ve seen some previously respectable channels turn into full on scaremongering clickbait in order to profit from the kind of neo- McCarthyism that trump is stoking

[@cottagegymfun]

@@simplefun471 these biases are expressed in English. Favorable nations to China are not English based

[@Liaomiao]

I still think calling

[@simplefun471]

Cottage Gym this is pretty true actually I think people in the Anglosphere / western world think it’s the world vs china but in reality it’s only the west + India + japan vs china

[@jifa17]

actually, it's still very biased

[@khanra]

It was Sri Lanka that proposed handing over control of Hambantota Port to China - it wasn't China's idea. Sri Lanka, having just lived through a Civil War, had an extremely high debt to GDP ratio too.

[@thearmchairyoutuber8669]

Loans Sri Lanka took from China

[@Rex-ww4cw]

Fun fact: Only 9% debt of Sri Lanka are from China. The rest are from other country. You can search it up

[@heinrichhimmler3781]

Thats true Im From Sri lanka

[@davidcooper5790]

@@Rex-ww4cw is that 9% of all of SL’s debt or 9% of the port debt? If all then what’s the percent of port debt to China? (What percent of port funds did China supply?)

[@Rex-ww4cw]

@@davidcooper5790 overall debt...

[@obsidianstatue]

3 general aims of the Belt and Road initiative. 1, in the short term, China can export the excess capacity in their infrastructure and construction industry. Chinese infrastructures like ports, airports, highways and highspeed rail is already the best in the world. so they need to redirect all that capacity, if not many workers in steel plants, and construction industry will have to change profession. 2, in the medium term, China will need to cultivate these countries into emerging consumer markets, Chinese telecommunication companies are already dominating Africa, so when Africans gets a little richer, they'll start to look for consumer products to buy. 3, in the long term, China will need to gradually move some of the low end manufacturing to these countries, which is already happening. and turn them into workshops for China. China can sell them technology products, machinery and capital goods. All the above will internationalize the Yuan, and shift the world economic center from the trans Pacific and tans Atlantic to Afro-Eurasia.

[@fenrirr22]

All of your points are spot on, however the most important for them is the first. Not only poor countries are in the Belt and Road project, but richer in GDP/capita as well. The country simply has to have a corrupt government, because the terms of the project are simply unbeneficial for the participating countries people. The only winners in this project are the Chinese government and construction industry and the corrupt government's and they oligarchs in the participating countries. The losers are the taxpayers in the participating countries so it is total bullshit in the video that these overpriced and many time unnecessary infrastructure projects can somehow benefit the participating countries and raise them from poverty. Your other 2 points will come as well through government-subsidized "private" companies, but later (of course already in progress) when the average Chinese citizen gets too high salaries.

[@whiplashwind2cornwallis562]

@@fenrirr22 Not every projects are for oligarchs! Power plants in Pakistan and trains in Kenya are useful for regular folk. He got all the points exactly right! Don't fall for propaganda just look up what they are doing!

[@vinniechan]

CNY is not a freely traded currency which is a huge archilles heel Besides if the countries far away decide to default and nationalise not much China can do It's a long shot

[@user-wc7uk8nv8o]

Close enough....so....Can you tell me where you from ?

[@1rjona]

Vinnie Chan they could nationalize those projects, I think whole nation will suffer as well as whoever stupid enough to do that will have a target on his back. Let us say some leader convince his nation that they can’t afford to pay for this completed Chinese construction project but still want to keep it. It would be like defaulting on a loan. The nation will not be able to trade with a very big country. One that makes a lots of goods. Even America got surprised when they found out a lots of their medical supplies came from China. So the country will get more isolated than North Korea who is a pariah but is still dependent on Chinese trade. About the misguided leader, well better he does not step out of his palace because for sure there will be a lot of money riding on him falling from power

[@hpaul2864]

Without infrastructure poor countries remain in a Poverty Trap of stagnation. Infrastructure is the essential platform for countries to grow and modernize.

[@ahsoontan1219]

H Paul well said, with the infrastructures, the under developed countries can moved their agriculture,and other natural resources to increase the availability to themselves as well for exports. Health care could be much better accessible.China aim is to make theses countries self sustainable for a better life, whether this initiatives be successful will depend on the locals

[@georgeomole14]

@@ahsoontan1219 No it doesn't depend on the locals it also depends on China not sending its people to take all the jobs that involve the infrastructure.

[@ahsoontan1219]

SirIdle14 apparently you did not factored in that these infrastructures need expertise and experiences that are required to build them in time without overruns of cost . It also obvious you are not aware that the locals are given the OJT ,some send to PRC for intensive training

[@georgeomole14]

@@ahsoontan1219 Does that include bringing a Chinese police force into a sovereign nation in Africa? Because they are doing that in South Africa.

[@georgeomole14]

@@ahsoontan1219 Also the illegal immigration of these workers is also happening, which is not right either. Some of these illegal and even legal immigrants have been found taking contraband, like leopard skins and other wildlife animals for trade. And of course the Chinese government will do nothing to punish and or stop its citizens from impeding local laws in Africa. Its like going from one set of classical oppressors in the West to the new modern oppressor in the East

[@ceylon5860]

As a. srilankan person i have to say this. yes.we may be unable to pay the debt. But china is always act in flexible manner in those cases. they are not like hey you unable to pay,give me the property then type. we can always keep the grip on the our property .lease method or share method is executed in that sort of scenarios.As a sri lankan person what i can see,china help to develop our country other than any one in the history. If this total project is succeeded ,sri lanka have a. good opportunity to share the success. Western world has their own issues with china.but those are not our issues.The value of china becoming a super power in the world ,they are going to the development with most of asian countries.Eventhough some asian countries have got own issues with china,they should understand it. Its the time of asia.

[@easter-nmgr4086]

Yes we are looking forward 🇨🇳🇳🇵

[@galaxyofvid2738]

Truth and it's LTTE indians who are making propagandas of hambantota port as debt trap they tried their best to on Pakistan cpec project too and we kicked them badly

[@iamrmdp17]

Nice! You’re insights are the same with mine. From Ph here!

[@AhuraMazdaAhriman]

@kunal prasad As opposed to unbridled American hegemony?

[@AhuraMazdaAhriman]

@kunal prasad Look, relations between China and India may be less than peachy at the moment but if on that basis, you claim that America is now India's best friend, well I can only urge you to get your head checked. Don't know what they are teaching in Indian schools nowadays - probably gomutra and little else - it's as though the whole of India have collective amnesia of all the unjust and imperialistic actions that America had taken on India, like for example the sanctions that followed the nuclear test in 1998, the decades of supporting Pakistan in the Indo-Pakistani conflicts, the Bhopal disaster where the American CEO got away scot-free while millions of Bhopal residents continued to suffer even to this day, and there are more atrocities that I could list out but I'll stop to keep the post from becoming a treatise.

[@the1onlynoob]

Why is China spending this money? When you have giant surpluses and a lot of capital, you get to hold US debt. High yield, fairly safe but it remains immaterial and vulnerable to US fluctuations. China is using th their money to realise actual assets, like ports, roads, rails, leases and licenses. Instead of leaving their money in the bank, they are using it to buy friends. And to get neighbours countries on their side.

[@nate7LP_my_dog_found_the_knife]

It's the ultimate power move.

[@the1onlynoob]

Nate Schultz Power? Sure, but if you had to pick a super power neighbour, buying influence sure does provide a lot of capital and opportunities, instead of imperialists and colonialists.

[@chrono-glitchwaterlily8776]

This is what they dominate in... US=media and propaganda China=money and economy Both countries do the same, but one holds power over another in that aspect

[@ogzapatah]

Mmm I am not sure US debt can be classified as "high yield" anymore...

[@vidzrswow]

@@chrono-glitchwaterlily8776 I understand logical thinking is not your strength therefore stop posting bullshit.

[@theteabagwan2109]

The Amazing original: Han China The decent sequel: Tang China The Questionable expanded universe: Mongols The crossover episode: Ming China The hEnTai spinoff: imperial Japan The reboot: Red China

[@themongolsarecoming_9437]

The fake copyright infringement case :Taiwan

[@dainironfoot5198]

Wouldn't the crossover episode be the Yuan and the expanded universe be the Ming?

[@williamma2147]

The prequel: Qin China. The fake: Qing China. The one that spun the prequel: Shang China. The poorly run sequel: Song China. The sequel that really fumbled the ball: Republic of China. The sequel that nobody wanted: People’s Republic of China.

[@dainironfoot5198]

@ATEVEN19688 What's the HMS Amethyst incident got to do with anything lol?

[@dainironfoot5198]

@ATEVEN19688 你说的是吃素吗？

[@Sapienz_Tuga]

China makes the loans with two possible outcomes: 1- country pays the debt and both win 2- country defaults and china wins win-win (for china) xD

[@carlosandleon]

what if we make them build the infrastructure but then refuse to pay them?

[@aspiringbillions8353]

@@carlosandleon then there will be a balance of payment crisis. The currency of the country doing so will fall sharply and freely which will make their economy like that of North Korea Edit: P.S. It starts with credit agencies downgrading their credit, then investors pull out their money that adds up to currency crisis

[@Sapienz_Tuga]

@@carlosandleon ww3 xD

[@Sapienz_Tuga]

@tyy klo thank you! xD

[@triggerwarning7662]

It's not that. Future investment is dependent on pro-China votes (e.g. at the UN). Also, the country which loans funds usually essentially loans the funds to itself (local companies and employees do the work).

[@BobbyAngmalaysia]

The countries that hand over the control of their ports in their country to be managed by China - still has their port to export their products, refuel ships, and hire their workforce. It still stays within their borders and still belongs to them. Just that China offered a way to help pay back the loans if the port itself couldn't generate enough value. This is a much better diplomacy to help other nations than to create tension amongst nations, make them both buy weapons and kill one another.

[@alichoudhary9156]

Chinese workers* reality fact.

[@alichoudhary9156]

Giving debt and using own companies to make infrastructure.. it's double win and single win situation

[@armineser2591]

If no Chinese naval ship had to turn up in Sri Lanka harbor I would agree.

[@tekashiii]

Your right but except the fact that there isnt a chinese owned company/corporations in the world that has no chinese employees

[@petergreen5337]

Finally someone knows what they are taking about.

[@jaredfauver7074]

"the freedom treatment." lol, love it

[@MichaelMisoi]

Freeeedom!!!🚀

[@malikialgeriankabyleswag4200]

I was just about to comment this 😂 If america reflected the principles of its constitution in its foreign relations.. They would most probably not have a China problem today.. They would also probably not have the problems in the middle east it has.. Its strange but its actually Americas expansionism and tyrany that has propelled China to the semi trusted position it has among these nations... 🤦‍♂️ And now the whole world has the tragedy of China to contend with

[@Melissa-zy6qi]

China debts effect will not as catastrophe as the US debts. For example Iraq Before Saddam was hung 1 dinar = USD 3.2. Their GDP has increased 1200x but after the WMD fake news was made, the US has right to embargo Iraq and hung Saddam. The result was 1 USD = 1100 dinar overnight even in the black market 1 USD = 3000 dinar. This means let say Iraq has foreign debts of USD 1 million, in Saddam era it was only 300K dinar but it jumped to 1.1 billion dinar overnight once WMD fake news were made. This jump will create higher risk for Iraq to be default on their foreign debts. If you were the US treasury minister, what will you grab if Iraq is default on payment? Will you grab Iraqi women? Lol How about if JP Morgan comes and 1 USD = 1100 T dinar? Let see from humanitarian scope. Let say you have twins and are iraqi. Your twins because of certain health problem have to drink the US imported milk 1 liter per month. Let say 1 liter = USD 1. In Saddam era, you only pay 0.3 cent a month but after the fake news of WMD had been made, you would spent 1100 dinar for the same milk that cost you only 0.3 cents in Saddam era. China on the other hand like other east asia countries such as Japan, will not make their currency manipulated as they prefer to sale cheap good quality products to run their economy. According to CNBC data, China debt has increased 2% in the last 10 years but in Iraq, the USA debts have increased 1100x overnight thanks to the fake news. So the cheaper the USD, the wealthier the world will be and the cheaper the world debts will be.

[@malikialgeriankabyleswag4200]

@@Melissa-zy6qi Thats until China becomes the sole hegemony with not even a superficial interest in Human Rights.. Anybody with a brain can see how destructive and almost evil the American Empire has conducted itself.. But you would have to be totally brainless to conclude that China is some harmless benevolent actor just because of how blood-soaked America is.. Two evils can exist at once.. And China with the hegemony America has right now would be a lot worse.

[@Melissa-zy6qi]

@@malikialgeriankabyleswag4200 China is not the USA. You can not generalized that.

[@Croz89]

I think China does want world domination. Now, that term sounds scary, but obviously we're not talking about holding the world to ransom with a giant laser on the moon, we're talking about having the power and influence to dominate global trade and politics, not some evil conspiracy. Back in the day, the best way you could do that was by conquest, as we saw in the days of European empires. As time moved on the world changed, and directly taking land from less developed nations was no longer acceptable, or in many cases economically the best option. So countries like the USA instead focused on trade, corporations, and cultural and political influence. I think China sees itself as Britain expanding its empire, or the USA spreading its money and culture. And it's hard to argue they are doing anything wrong when you are speaking from a country whose wealth was built on global domination. How is it fair to deny them the opportunity to become the next Britain or USA? But on the other hand, today we perceive many of the methods that Britain and the USA used to achieve world domination were by today's standards immoral or outright criminal (and some argue many current practices of these nations still are). It's a difficult balance to prevent exploitation or so-called "neo-colonialism" from new superpowers like China without looking like we're pulling up the ladder and being massive hypocrites.

[@asianthor]

I wanted to give you 10 thumbs up for your comment, but obviously, KZbin only allows one thumb up per comment.

[@theprettypetard2524]

just want to point out that being hypocrite doesn't mean you don't have point. that is a commonly used logical fallacy to justify bad behaviors instead of an actual argument. instead china keeps on doing things that are no longer acceptable and cause massive frictions between nations and risk on causing a war becaus they wanted to be an assholes kid that follows the footstep of their bigger brother that made it fairly clear they shouldn't follow the same path since they moved on from it. seeing things that way it's fairly clear china never wanted to learn how to be a part of the comunity and only wanted to dominate since their actions aren't those of someone wanting to be friends.

[@chaosXP3RT]

Well, I maybe biased because I'm American, but I think the US dominating the world is, in general, better for the world than China. I've never heard of a professional sport like China or E-sports having to issue an official apology to the USA because a player criticized it. Or having to disqualify a winning athlete for saying such things

[@davidt1645]

chaosXpert I am also American, but I disagree. America has been the world’s sole superpower for decades now. It’s fine and all for America’s close allies like the EU, UK, Australia, S. Korea, and Japan. But for the rest of the world, they really have no say if America truly wants something to happen. We also often forget that America has the most powerful military to ever exist. Even if all the world’s countries worked together, America would be able to fend them off for several months. I think that China become a new superpower alongside the US would be beneficial to the world and ensure “checks and balances”.

[@punctuationman334]

Tommy Lee 雷 “because of the USA” lol.

[@samuelkibunda6960]

When someone other than poly matter talks about china

[@bradm824]

Try China uncensored 😂

[@themanwiththepan]

Like China Uncensored

[@user-pz9sw6tq6b]

@@bradm824 China uncensored is a joke. I bet that guy never had been in China.

[@user-wc7uk8nv8o]

​@@user-pz9sw6tq6b NOnono...China uncensored is true , just watch China uncensored ,and do not watch others.

[@DanielNyong]

头脑开光 you’re probably from chAyyna

[@girasegina9725]

"If they get out of poverty, maybe they can afford more of our products." That's a win-win.

[@subbuvuyyuru04]

yeah they got rich by knocking of hgh tech from u . u think they will buy on u r terms then forget it u will have to beg them to buy u r products

[@y.z.6517]

@@subbuvuyyuru04 The fact is that China has more patents than any other country. Chinese technology in many fields (e.g. 5G, AI, high speed train) is the best in the world. Yet white supremacists still claim that "they steal our tech" (Lol, when did thieves understand someone else's techs better than the inventors?). Demagogues know that they have a very racist and ignorant audience. China had the largest economy in 1900 years out of the last 2000 years. It's just back to normal. Read your history. Trading with China was something European countries eagerly wanted in the past, until China lagged behind. Enlightened French philosophers before the French Revolution discussed Chinese constitution as a superior political model, over a tyrannical Bourbon absolute monarchy, in the 17th century.

[@SchnellTim]

*”get out of poverty”, meaning getting better infrastructure _and_ being indebted to Chinese state-owned corporations, right?

[@y.z.6517]

@@SchnellTim I think you overlooked the fact that better infrastructure brings more income. Why do people borrow money from the bank to go to college or buy house?

[@y.z.6517]

@@SchnellTim Also, western investors have been doing the same all the time. Why no one is accusing western countries of making developing countries "being indebted to greedy western corporations"? Because China offers a lower interest, doesn't invest with strings attached, and is more willing to comply with local regulations and to train local people? Or because the extra competition means that western neo-colonial capitalists can no longer exploit local resources and emit pollution without giving anything back to the local population?

[@damienchen178]

Nice Job, EE! This is quite a balanced perspective. The "debt trap" rhetoric portrays African leaders as somehow unable to see the risks involved in the loan arrangements. This underlying assumption reflects Western prejudices and stereotypes against Africans. After all, many African countries need loans to build infrastructures to prepare for the coming demographic booms. China is the only shop in town that provides low interests loans with relatively few strings attached. Whether or not the security-backed feature of the loan is worth it is up to the African countries to decide. Many finance ministers of African countries, who made such loan deals, regularly write column essays in mainstream media and have a presence on social media like LinkedIn and Twitter. Their positions are much more nuanced than the "debt trap" narrative; they are making rational decisions based on the options open to them.

[@averroesthecommentator2989]

Exactly. The whole debt trap argument is essentially underhanded racism against Africans.

[@Steveleecomedy]

I love this channel because you use logic rather than emotion to judge one's action. This is 1 of the few videos from western countries don't use fear on subject related to China.

[@ilkeracar6567]

It's what you should do in business and economics, no emotions.

[@danielbromwich1827]

And yet china still comes out looking terrible in this video.

[@danielbromwich1827]

@Jiayou Indonesia! Well, they do. the IMF and world bank follow statistics and economic orthodoxy. if they're charging your country (Which is almost certainly a shithole) 17% it's because it's a risky loan. China charges lower interest rates because it can economically bully countries into repaying rather than defaulting and because they usually have contract stipulations that would result in them acquiring collateral assets.

[@sweetrain9482]

@Engineer Markos Mataas which country's flag is that?

[@chrono-glitchwaterlily8776]

@@sweetrain9482 Philippines. I also come from there, but I don't really support China as their navy has been spotted near our territory in the West Philippine Sea. Though I do think they benefit the countries that they lend loans to by giving opportunities. It's poor handling on their part that gives China a bad rep. I think the US also lost part of their land to China which is why they keep attacking them in media

[@mememastodon69]

>traditional chinese medicine involving endangered species >shows footage of dried scallops used in soup

[@Typhy7]

Cause no one wants to see tiger testicles.

[@davecullins1606]

Get ready for Corona 2!

[@andoverite]

Since when was scallops considered endangered species? Where's your brain, dead brain!

[@lightonstillwaters6789]

@@Typhy7 Lol 👍. Have you? What do they look like? Ugh, forget I asked.

[@brainwashington1332]

BRI also helps develope markets that can eventually afford Chinese products, win-win.

[@samduncan683]

I really love your videos, learn heaps from them and hope you continue doing this! Thanks mate!

[@blaze3547]

Belt? Reminds me of my dad.

[@nicholasrevill6610]

Ooof

[@EconomicsExplained]

ohboi

[@daniellau3529]

Ikr, still gives me wood

[@blaze3547]

Guys... he didn't hit me with it... He only liked taking it off around me.

[@themongolsarecoming_9437]

@@blaze3547 I don't know if that's any better.

[@tetlamed]

I love how we Americans are SO WELL KNOWN for declaring war on countries for their resources that he can just say "Freedom Treatment" ( 6:57 ) and knows viewers will understand

[@grahamturner2640]

It's at 7:08 and I knew it was a reference to the United States. Those resource wars started in the 19th century.

[@SangoProductions213]

so well memed*

[@noahpolicarpio1530]

It's a running joke at this point. While American media says otherwise, their victims have long memories.

[@Alanixs2242]

Yhea idk what the US plan to stay in the race is, im just scared they might use the most powerfull military in the world in a desperation atempt to stay on the top :/

[@kavky]

@@Alanixs2242 You mean like China is doing right now with Vietnam? Or how Russia is doing right now in Ukraine?

[@nathaniellong4281]

I'm a simple man, I see Economics Explained has new video, I watch as soon as possible. Why? Because I know I'll not only learn, but also understand, more about economics in a single KZbin video than I did reading an entire chapter in a college economics textbook.

[@Simon-zan]

Amazing analysis, just as always! Would love to see your videos on the economies of Poland and Denmark. Both were among the most interesting countries in Europe before this crisis but now, given they both seem to have been much less affected than other European nations, they might come out as even bigger players.

[@olaf421]

1:18 'Healthcare Systems' Americans: You what?

[@styckykeys2200]

Cries in leftist American

[@SamuelNoaGreen]

Stycky Keys Leftist? ^^ You know that it’s the right that is afraid of a good healthcare system in that country? I mean I guess their left is right wing in comparison to the world xD

[@falk2009]

@@styckykeys2200 Bro in Germany people who support the healthcare system aren't called leftists they're just called people with common sense

[@aykay1468]

@@styckykeys2200 same. America's not a good place to be a leftist nowadays

[@jimmydyurko]

@@styckykeys2200 goes to show just how ridiculously right wing the US has become. Simply recognizing the pathetic condition of the health care system gets you labeled a leftist. Pretty sad. Try to explain medical bankruptcy to a Canadian, German, Brit, heck even Cubans... and you might as well be talking to them about aliens.

[@Toble0071]

China isn't stupid. They want these nations to succeed and set up the terms to put themselves in a position to succeed. If their loans pay out they get a much more powerful partner who you help built up, which can only help China. They are also setting up so if these loans fail they have real consequences for the borrowers, a port here, some piece of land there. They want the loans to succeed but they have set up the terms in a way where either outcome benefits them in some way. I suspect that the loans are somewhere between debt traps and idealistic loans which help the nation involved. Time will tell which are which but the loans are certainly a win win for china.

[@e7venjedi]

Unless of course [some of] the investments turn out to be relatively worthless [some might use the term 'sub-prime']? Then you've spent a bunch of capital on a liability rather than an asset.

[@jacoblau9355]

I never understand the whole "debt trap" thing. Rates are as low as 2% most of the time and China constantly wipes African debt at least. Some countries like Ethiopia for example got their stuff for free with no strings attached. Also, the whole Belt and Road thing is voluntary and can pretty much be terminated whenever, its hard enough to force someone into a trap, let alone when given a choice, that makes no sense. So how does it benefit China? Well, they care about long term prosperity and thus stability for her people. Its socialism at work thus the hate. My one dollar infrastructure donation today will generate 10 back tomorrow. Even if not, it'll help your people and at least keep you at bay. An unstable world leads to an unstable China, we've seen this throughout history. I mean its like if the government of most countries instead of giving money handouts donated foodstamps. Foodstamps means they've done their job and part and its literally no lost to them whatsoever unlike a money donation which can be used to buy drugs, cigarettes, alcohol, etc. But here in Australia, they'll rather lose money then lose business and sponsors.

[@yamyam2987]

LOL. Wrong

[@intelligentbodywork]

@@jacoblau9355 China is doing what the Soviet Union did to Afghanistan. Build the roads, railways, import/export hubs, celebrate the success of "friendship" and then put the guns to their heads. Speeding up consumption of resources is stupid. Long term consequences of this is not good.

[@taowang9735]

if this is so good, why has not USA started doing this?

[@weirdlyweirdweirdo]

You're an underrated KZbinr, your editing is very good. Nice info. Keep it up 👍

[@kierenzhou3925]

it's good to see an Australian channel making objective contents from economic prospective; so much better than those politicians, or so called news website and TV shows, where they never tell you the whole story and only say what they want you to see and hear

[@user-py1qb9mz5g]

You missed the most critical goal of China's BRI: National security. >90% of China trade and oil import goes via sea, and China's navy is not powerful enough to protect it from US navy, so China goes west to connect to EuroAsia continent which US won't be easy to block. All other goals are secondary.

[@ikonoklast3158]

I think he knows but it would make a short video lol

[@awijaya2116]

@Sam Aj Most of that navy is brown-water. At the moment, _India_ has more long-range naval power than the PRC. That is changing, of course, but the fact of the matter is that increasing military strength is both a money sinkhole and takes decades to do properly. Thus, the BRI.

[@Kongajinken]

You really think the most powerful military in the world would have trouble blocking a few key roads? If the US was going to blockade China at sea, a few roads won't help.

[@y.z.6517]

@@Kongajinken No sane country would attempt an open invasion against a big country with nuclear weapons. It's called Mutually Assured Destruction (MAD). WWIII would only happen, if the US thinks that their military is strong enough to block other countries' missiles. Then it's the end of the mankind.

[@fizkallnyeilsem]

@@y.z.6517 try replacing that scenario to China, then i assure you US and China will be responsible for the death of us all, both countries are having useless conflicts

[@botelliretro6165]

Belt and road initiative offers to the world a much easier access to materials and commercial goods to countries that lack infrastructure to do so.. its a win-win situation for all.. but ofc the country who is in charge for this kind mega-projects might benefit the most.. (there is no free breakfast)

[@Ayo-hf9xd]

Fantastic channel. Thank you for the hard work.

[@dumanimjo609]

China: I'm about to end the Western World's whole career...

[@catonpillow]

I mean, China has been the world leading economy for centuries prior to the Opium wars with the British Empire. So what you're witnessing is just a returning to the normality than anything else.

[@andyfriederichsen]

And the Western World's freedom...

[@goodbad-boy]

you mean the entire world

[@AdityaDeo-cg6eu]

It is just trading with the west. As for poorer countries it is driving them into devt traps, making them dependent on itself.

[@Sanddollar1]

You can try, but China is now showing who it really is... the Satan of regimes... The Enemy of the freedom and liberty... the Darkness descending upon the world.

[@eckmann88]

It’s a win-win for China. If the undeveloped nation defaults, China gets some great assets. If they undeveloped nation pays up, China gets remembered as the leader of their own version of the Marshall Plan.

[@randomnobody660]

if it's that win-win, why wouldn't literally any other country do it? In fact, why wouldn't big banks offer those loans?

[@kevinchen9677]

@@randomnobody660 Because Western Bank are not state own. They don't offer loans to Junk Rated countries. This juice isn't worth the squeeze for near term profit driven corporations.

[@questworldmatrix]

@@kevinchen9677 If they're junk rated then what does anybody care?

[@waterdrinkingexpert6797]

@@kevinchen9677 because western banks don't hand out cheap credit to anyone who wants it anymore (they used to).

[@kavky]

@Vlad the guru What really is? You realize USA has sent trillions of dollars to African nations as foreign aid for decades? Not buying their debt like China, but giving them literal free money to help with various humanitarian problems.

[@corentinfuller8053]

It seems unlikely China would want the borrowers to default on their debt, as it may discourage new countries from entering the BRI and makes the existing countries wary of China's inluence. However, in certain instances, where assets of strategic importance are in play (Kenya, Mombasa) it does appear that China is glad to have gained a new foothold in the region, regardless of the bad press it may attract.

[@owowow7509]

Those countries don't have too much choice. It's China's money or nothing.

[@howluk2901]

Not really, China has much more to gain trading with these nations, China need them to be successful. What's the point owning their asset (ports) if you can't do business.

[@Swail23]

One of the way these countries will fail is through misused of borrowed money. And you know what it is - CORRUPTION. This will never disappear and politicians will do everything to get what they want. But China know this. So they used their own companies to do the projects and hire Chinese workers as well. I know it is not a good idea but I guess China is trying to be sure and careful.

[@ABC-ABC1234]

@@Swail23 It's soo funny, how Western nations REFUSE to do business with corrupt African nations but when China actually invests in those nations with direly needed infrastructure it's suddenly " DEBT TRAP " ?! Europe had its chance to impress upon Africa and work with Africa as an equal partner instead all they could do is look down upon them and insult them! Sorry, not sorry, a BIG FAN OF BRI here for Africa! China is willing to work with Africa at a time nobody seems to do so!

[@Horible4]

@@howluk2901 Didn't even take 3 years for these comments to age like milk.

[@kkx7790]

Jack Ma philosophy: Make other people rich so that they can buy your products.

[@xandercorp6175]

Like Henry Ford and his workers.

[@nidhisingh-mx6ph]

That was British philosophy when they colonized . CCP is the new EIC .

[@roguegenesis7020]

That's actually Ford's philosophy There's an entire philosophy called "Fordism" based on that...

[@6th_Army]

There's also a strategic reason for China to do this that I haven't yet seen anyone talk about. When no-one else in the world would even look they're way, China did. China did allot more than just look at these nations in major need of help. China actually did help. China is the reason these once poor nations are now respected wealthy nations. If China is in need of help, these nations will have a reason to support China. After all, China is the one who helped them when they needed it most, when no one else even tried. If the governments won't help China, the people will. After all, It's them who see's the difference the most. From what's considered terrible living conditions of 100 years ago to moderate living conditions of today. The people are the ones who have the most reason to support China. This is a theory of course.

[@tuan2352]

I agree on this!

[@Kongajinken]

The western world has been sending donations to Africa for decades. Just look at Bill Gates as an example of some one that has dedicated their life to doing so. China helping out Africa is noble. But they aren't the first country to do so.

[@6th_Army]

@@Kongajinken True they've been sending donations. But they've yet to actually help them like China has. The western world is too busy censoring itself to actually do anything meaningful.

[@Bob-om9md]

@@6th_Army i don't mean to be a Debby downer, but Soviets, Americans and colonists before them did they same thing to strengthen soft power. Their actions aren't even a new thing in the indo-pacific region, as countries like Australia have been funding and building infrastructure in poorer countries so that their trade routes are strengthened and secure. Australia's main reasoning for doing this is essentially the same as china's i.e. building ties and loyalty. It just so happens that China is doing this on a larger scale.

[@6th_Army]

@@Bob-om9md Exactly.

[@spergelord8401]

China is giving trillions of dollars for construction for many reasons: Basic industries is what lead to China's rise, basic industries need a developing nation to thrive, not a developed one. They give these loans to poor nations who buy cement, pipes, paint etc from china. These industries otherwise would have seen a fall in demand within china because china is now well developed. Also these loans make country politically bound to china. That's why its such big loans.

[@marcusaureliusregulus2833]

Also we gotta keep in mind that China is known to do schemes with extremely long-term objectives, like 50+ years even. It would also get more countries on their side. Just my opinion though. Open to other ideas

[@irvingchies1626]

Ironic because China is only developed in the big cities which hold less than 15% of the population, go just outside and you'll find a lot of poverty, lacking roadways and low levels of education

[@floridaman318]

@@irvingchies1626 So the American South?

[@vanillasnowx]

It is an attempt, but the money that china is giving for these projects are loans, not grants. this misunderstanding has soured relationships with china and these countries. these are poor countries to begin with who probably wont be able to pay back the loan anyway. this is also an attempt for them to move labor to other countries because of their aging population thanks to the one child policy that has been for about 25 years? this has resulted in labor becoming more expensive in china. the one child policy has severely brought china into its near future demise, because fast forward in 10 20 years, the ratio old ppl and young ppl in china will be roughly 2 - 1. this will have enormous burden on its young people. let alone asking to wage war. China has navy that is bigger than the us fleet, but they have only a handful of ships that go into deep waters. they have 0 battle experienced officers let alone soldiers (shooting drills can only give so much with no one shooting back). They are surrounded by countires who dont like them, save for North Korea. To get to the oil fields they will have to pass Japan, taiwan, india, singapore, sail 5,000 miles (a guess) to and back, with an escort convoy... to maintain 1 BILLION PEOPLE. im not even gonna mention their credit system. if usa removes itself as the policeman of the world, and stops trading with china. they will have trouble

[@punctuationman334]

vanillasnowx yes, we know it’s loans for Christ sakes, he literally said it was.

[@jsplit9716]

Don't chinese companies also own a lot of the mining rights in these developing nations?

[@huanhuang311]

Not as much as the west owns.

[@denisflorian2431]

kinda,more in africa,but America (not the government) owns more

[@mmmk6322]

I don't mind getting along with my Chinese overlords. They elect engineers and scientists into their political position. No bs government.

[@geoffreycharles6330]

@@mmmk6322 where are the Chinese going to be your overlords, if I may ask?

[@mmmk6322]

@@geoffreycharles6330 Saudia Arabia

[@360greece4]

A very fair and interesting analysis. Thank you.

[@henrynack]

It is a dominant strategy in terms of game theory: Either the trades succeeds and china gains more wealth and influence or trade fails with china own some new real estate.

[@aquaticnstuff7666]

Yes and my question is who does the dirty work when the country defaults?

[@aussieboy4090]

Not exactly a debt “trap” when even ordinary people know the debts. It’s an example of governments being greedy.

[@adeimantus4224]

You mean by fed right, it's a western style system. Why they seems so rich is because they has access to get bonds to boost the economy at first but mismanaging it and then they took another bond to pay the first one. When the time is up again the ask for another bond and so on and on.

[@alexandrub8786]

@@adeimantus4224 nit all people reffere to the government or the national bank as "fed",only (us)americans.

[@adeimantus4224]

IMF too, sorry to say this but it's already in the movies. btw the fed is not apart of the government or is it a corporation from jackyll Island

[@Otzkar]

The main problem is that the money that flows into the country doesn't stay there but goes to chinese contractors

[@drunkensailor3736]

Let's also not forget that the Belt and Road initiative is a major motivation for the clearing of a path through Xinjiang and is this a factor in what China is doing to the Uyghur people. There's a great video which explains the situation there with the "re-education" camps: kzbin.info/www/bejne/fYGvm6CEgMRgj68 Ethnic cleansing?

[@weaboo837]

Mongol Empire 2: electric boogaloo

[@lubu2960]

economy of the mongol empire (?

[@erniecole2957]

Hey I got that reference

[@ondrapsenicka4762]

I have to admit, I didn't expect many people would watch both macroeconomics and Minecraft videos. Glad to see I am not a rare specimen.

[@user-sq1nc5ot8m]

Ondra Pšenička electric boogaloo is not a minecraft reference.

[@Thedumone3235]

@@user-sq1nc5ot8m it's a reference to Grian's tag 2: electric boogaloo game on hermitcraft which is Minecraft so yes it's a Minecraft reference

[@justzach253]

If China helps these 3rd world countries pull out of poverty then I think it's a overall gain.

[@arminius6506]

Africa is massively growing and at the end of century they would surpass Asian population, with poor economy they would flock to EU, if europe wants to stop mass imigration than they need to invest in Africa

[@akintoye-ilori]

Zeeshan Niazi that went off the rails fast...and what makes you think that the whole continent wants to move to Europe? And if they do not it will be thanks to the people trying to better themselves and some help from China. In any case you should try and write more coherent sentences.

[@arminius6506]

@@akintoye-ilori well I think you should better have a look at Mediterranean and the caravans of refugees flocking to Europe. Reality is reality no matter you write in coherent sentences or not.

[@akintoye-ilori]

@@arminius6506 and how exactly does this concern the belt and road topic of this video? Or do you just project your fears unto everything.

[@moman225]

@@akintoye-ilori They are right though. If European Countries want to stop Africans from immigrating, the optimal solution would be to help make sure African countries prosper so that immigration, legal or not, is less appealing.

[@edparker1143]

Genuinely had an economics lesson about this topic today and didn't really understand it. Convenient that.

[@nicholasrevill6610]

Last time I was this early, EE replied to my comments.

[@EconomicsExplained]

This is a reply....

[@SD-tj5dh]

Replied**

[@SD-tj5dh]

Last time**

[@nicholasrevill6610]

리주민 m8 you weren't early

[@jadefalcon001]

Senpai noticed you!

[@flarklar2371]

The not only give out the loans, they also build the infrastructure payed by the loans, employing chinese workers and installing chinese thechnolgy. They litarally get their money twice back.

[@user-hj8ch1fd5q]

When you criticize pls give a better solution or advice first

[@chrisjlee2013]

理智的脊梁 He’s not criticising? Your Chinese ego is getting to you. It’s very common

[@brianyang5075]

They’re basically turning Africa and other countries into Tibet, all that left is to build military bases there and export ethnic Chinese to replace that country rich class.

[@lendarko7871]

@@brianyang5075 no different from what the west has done. It's an amoral world.

[@bige3269]

@@chrisjlee2013 That guy is a nutcase. I watched some of his videos and he believes the USA is going to start the Chinese-Taiwan war and that China's extremely low reporting of the death toll of the coronavirus is true. He put random "probabilities" for stuff in his videos backed up by no evidence besides what his government tell him.

[@rusticbox9908]

I liked your analysis, I would've explored the market potential in developing countries are tremendous. If these nations don't screw up internally (ie; civil war), and just grow a few % per year, their combined new found wealth in purchasing power is incalculable. For the past 300 years, European powers have only conquered to exploit without giving these places any real long term benefits. These Chinese infra structure will benefit locals immensely by offering opportunity for other trade to happen, a much needed breather IMO.

[@realtissaye]

^ THIS! European powers have done much, much worse over the course of literally thousands of years, including exploiting China as well (Opium wars and subsequent events).

[@kathri1006]

The most important thing is to understand how the West controls the world order and manipulate prices of goods in the world markets in their favour. That way they can sweet talk you and destroy the economy at the same time. People in por and rich countries other than US, learn, learn, learn about economics and how the world runs. The best way to avoid wars is to make people educated and prosperous.

[@ephraimboateng5239]

"All roads lead to Beijing" is replacing the "All roads lead to Rome"

[@jacoblau9355]

The irony that both times it involves China. I never got the whole "All Road's lead to Rome" as a good thing. Even back then China was primarily an exporter. Now they're going to be huge importers as well as export.

[@stephenchan7398]

Roads are bi-directional. It depends on who is using them wisely.

[@y.z.6517]

@@stephenchan7398 Let's say all roads from Alice, Bob, Charles, Danes leads to Emily. Emily gets 4 times the traffic, whereas everyone else gets only 1. It's beneficial to all, but mostly to Emily.

[@y.z.6517]

@@stephenchan7398 BTW, this is why helping others is a better strategy than MY COUNTRY FIRST demagogy.

[@markchan8110]

@@y.z.6517 Your thinking is single dimension. Alice can trade with Bob, Bod with Charles and Danes and vice versa among all of them.

[@kylewilliams8114]

It really just reminds me of how the US did the same thing in the '80s through the IMF and other institutions. What are your thoughts on the book, "Confessions of and Economic Hitman"?

[@macculu501]

Don't know if China would have these Jackals & definitely cannot rely on the brute force of the Chinese military, unlike what happened in Grenada and Iraq

[@thegreatwesternbengalproje2863]

@@macculu501 grenada? I haven't heard of such, what happened in grenada?

[@williamaseng]

I feel like China has different mind set than the old wester capitalism where they want to maximize profit by sucking up resources of the other party. China is more growing together and become win-win for both sides. No country has ever thought of going into poor countries to develop roads there let alone giving loans.

[@nothing9220]

Man it's the world if nuclear weapons... Thats not gonna happen here... Its all about business

[@stephen7yu]

Realtively unbiased among most of such videos, thanks!

[@augusthoglund6053]

This video does much to explain the economic implication of the OBOR project as a whole; I would be interested to see the same cost/benefit analysis applied to each individual development of the project on its own. The first would be the non-commercial uses of foreclosed ports, which are consistently becoming PRC overseas military bases, the most famous being the base in Djibouti by the Gulf of Aden. It would bring clarity to find the the extent to which this base stands to protect ships from piracy, versus the current cost of piracy on PRC shipping.

[@edwardscrase6136]

As said below China wins regardless. Get's money back, happy days and most likely more loans. Default on debt, either get assets or alter terms and look generous hooking in more borrowers. But also think about which currency these loans are in? Guessing it's all Yuan?

[@tdoge]

I thought those loans are mainly denominated in USD, at least currently

[@evankurniawan1311]

There is the bad part too though. Developing nations is plagued with corruption. So if they loan 1 billion dollars, the infrastructure might just worth 700 million. And those infrastructure won't even guaranteed to generate profit. And there were already sign that some of Chinese investment in Africa go bust, netting them half finished stuff

[@alid.p.1983]

@@evankurniawan1311 Personally I think that is why China is issuing these loans and doing all the work. They know that if they let the country do its own thing with handouts it will inevitably be plagued with faults out of their control, which has happened with comparable US/EU development programs in those regions. I think they are basically paying the country's to just sit back and earn moderate cash because not paying them is like colonialism and that would make China look bad and China is trying to be the next major, modern developed economy. Plus in 50-100yrs time China will now have a whole set of moderate income partners with similar standards to them to trade with.

[@godessworshipper4663]

@@alid.p.1983 Spot on. But still, they would accuse the Chinese of not providing jobs to the locals.

[@ihl0700677525]

Exactly like post-WW2 "Marshall Plan", which is the exact reason why the US is so apprehensive about it.

[@25usd94]

The best thing about the belt and road initiative is that it may prove that rich nations can drive global economic development with an "infrastructure first" approach for everyone's benefit. The worst thing is that the Chinese government is the one doing it

[@noopyx3414]

Only China can do it...

[@ssrbgangimaribotan6thofthe12]

@@noopyx3414 only they want to do it. no one else wanted. other than ancient rome

[@ssrbgangimaribotan6thofthe12]

better worst than nothing. no any other nations are willing to do it for us without ruining our economy or making unfair deals that heavily favors the corporations of other nations. those unfair deals basically have taken most golds from our country, like 90% to them 10% to us for like 2 or 3 decades. Until recently we nationalize them by buying 51% of the stock of the our country's branch of the gold mining company after a very long negotiations, we also ratified the agreement to be more balanced. remember this is after around 2 or 3 decades of exploitations.

[@madensmith7014]

The reality of this is that the governments in most rich nations have no real control in the companies that can engage in foreign markets. Governments are funded by tax payers which are not really interested in paying for the benefit of some place they've never seen. Most cases where you see infrastructure projects funded by richer nations, its typically the poorer nations doing everything they can to convince those foreign companies to get into their countries. There is also the factor that infrastructure are not really profitable, that's why it's usually subsidized by the government. Private companies don't really care much about the overall development of the region if it doesn't directly translate to them gaining sales. Funding roads and trains just so people there can buy an iphone is too much of a detour for profit driven companies.

[@gilsonrogeriolimaoliveira2807]

Maybe China learned with the mistakes of the US. US didn't allow other countries to develop, now people all over the world are flocking to their shores trying to get better luck, or outright hate them, and will do everything to destroy them.

[@ThePorschefan]

George Friedman: "so you are telling me that they are going to build a road accross the most unstable parts of the world without military ocupation? "

[@kkdirafung1489]

you will learn someday

[@faizakhalid-khan467]

Wow. A westerner can only think in one way..

[@ThePorschefan]

Jay Leong no it’s not. It’s like their naval force or their currency in international markets. it’s physically there but it’s not operating neither it’s taken seriously or represents a threat, it’s just a chess(political) move

[@tylerwaxman7512]

All I can tell is that you have a pinhead without brain.

[@alone-tt8dg6ic6f]

I need information of built and road initiative regularly as a student of world economics and development. Your chennel is greatly informative and unbiased.

[@itschrisuphere]

EE, you missed a really important part regarding how China benefits from this. After the standard 'China fiscal stimulus' -> which largely involved building core infrastructure within China, stimulus spending on infrastructure in China started to be less effective post-2009, and particularly mid 2010s as the infrastructure internally was pretty built and in some instances over built. Just like how these 'commercial banks' providing loans are state owned enterprises, the firms doing the engineering, construction and procurement of equipment in these countries are also China state owned enterprises. Additionally, another point of criticism is that most of the construction workers on these projects are actually from China. This means that when China is issuing a loan, a large proportion of that money is funneling back into China through both the firms doing the work, and the pay of the Chinese workers who may otherwise not have projects to work on. So in many ways, it's a debt fueled 'stimulus' that is taking place outside of the country.

[@WangGangOr]

itschrisuphere thank you! I was waiting for him to say it, he got so close to making that point too

[@bettyray9220]

What happens to the construction when Chinese workers are unable to get visas after the COVID-19. Right now all construction on the Belt and Road have stopped?

[@bread90210]

In Jamaica , the workers are 50/50 half Chinese and half Jamaican. I think that's fair. They built and repaired the main highways across the country

[@y.z.6517]

OK, why don't you do a ton of voluntary (unpaid) jobs to help the poor to give yourself a job? Spending your time to do work is as good as giving money.

[@patters.]

This comment section will definitely be civil and not at all controversial 😊

[@EconomicsExplained]

you know, I have actually always been impressed by my audience. Especially when you consider it is still the YT comment section.

[@themongolsarecoming_9437]

Look at the America and developed section it is a freaking war there.

[@drunkensailor3736]

Let's also not forget that the Belt and Road initiative is a major motivation for the clearing of a path through Xinjiang and is this a factor in what China is doing to the Uyghur people. There's a great video which explains the situation there with the "re-education" camps: kzbin.info/www/bejne/fYGvm6CEgMRgj68 Ethnic cleansing?

[@christopheralesund8165]

@@drunkensailor3736 its more of sinicization than ethnic cleansing, they get let out, its just the controversy of them being there to begin with

[@drunkensailor3736]

@@christopheralesund8165 Well yeah its akin to forced assimilation (i.e. cultural genocide), rather than physical extermination. They're also swamping the area with Han Chinese to dilute the population.

[@dowskivisionmagicaloracle8593]

I don't see this as "debt trap diplomacy", just mutually beneficial business. If a country defaults, the infrastructure built with their loans gets repossessed. How is this unfair or any different than what happens to any western citizen?

[@jbrandonf]

Countries aren’t citizens.

[@sammosaurusrex]

(it's no different from Western development loans, but that doesn't make it not nefarious...) There's a book titled "Confessions of an Economic Hit Man," the Autobiography of an American consulting engineer, who alleges he was pressured by his firm (who he believes was in cahoots with the NSA) to paint rosy development projections to governments of developing nations so that they would take out unreasonably large loans from the World Bank or USAID, hire American firms to construct their infrastructure, and fall into the same debt traps that China is setting up now, forcing them to stay on America's (and more broadly, Western leaders') good side or risk having their debts called in. The book has a mixed to bad reputation, and some of the stuff is unverifiable - in particular the book prominently alleges a connection between the NSA and corporate America that seems a little sketchy, given that the NSA is more interested in cryptography and electronic surveillance than CIA-like political machinations. He also definitely alleges unproven CIA involvement in the assassination of Panamanian and Ecuadorian political leaders. But the overall outlook - that the goal was to get developing countries hooked on these large infrastructure loans, that it's worked, and that it's a tool for American hegemony - largely checks out. No real difference between this and what China is doing - there's just two world powers vying for dominance now.

[@noeswantra2295]

​@HMS Blackprice ??? I live not far from a BRI project and what you say about 80% projects being built by natives is certainly BS. I'd say it's more like 50:50 and yes, China also give not just supervisors but also even the manual workers especially for more questionable, high-risk stuffs like for mining & smeltering. And it is cheaper to hire Chinese workers than our native ones because frankly, Chinese workers are often more mistreated than ours (since authorities here would entertain some sort of domestic worker complain, but foreign worker complain? They wouldnt dare do so. It's a very top-down relation between the company and the workers themselves where the workers obviously does not have any bargaining power) Do you have personal experience like this? Or again, it's just news you read from Chinese sources? Western propaganda is real, but that doesn't mean Chinese ones aren't.

[@isaacleigh2185]

A video that is balanced and informed. Thanks for putting this out.

[@dailyrant4068]

A lot of comments seem to come from people who didn't actually watch the video. Will China profit from the project? Yes, and why would they invest in a project that isn't profitable? As the video points out, it's a 1% interest rate loan. Who else is doing this? Will the host countries profit from the project? Yes, as the video explained. What is the alternative? Developed countries aren't going to do these types of development out of generosity. If you are truly a global humanitarian, as if you care about the well being of everyone, you would actually want the western power (who supposedly are righteous and want to protect the world) to participate and force China to play fair. To sit there and criticize an infrastructure plan, while offering very little else to help the poor countries is very dishonest. If you are just a capitalist, well, then you are just another China, hungry for money. If you take a deeper look, what benefit does China have to own a port in the middle of Ethiopia if their economy fails? There would be nothing to transport. The only way this works out to be profitable in the long term is if Ethiopia grows economy and has more trade with China. It's funny that most of time, when Americans talk about businesses, they are very pro-business and always call profits a fair thing. But it seems like it only applies if they are the ones profiting from it. I not only think China should do this type of project, I think India should do this kind of project too. I also think North and South Korea have a lot of potential if they can develop together more. Too bad, most people will never see beyond identity.

[@leolau5026]

muzzzeeeek Can’t see it coming in the near future

[@zheyuanying1533]

@muzzzeeeek if human stop hating each other and work together,,,,,,what a amazing world.

[@arnowisp6244]

If Ethiopia fails in its economy in your example that China could easy take over Ethiopia thanks to the easy access offered by the belt and road initiative. In fact, if they do fail than they can't pay back the Chinese loans forcing them to lease all the infrastructure built by China back to the Chinese. From a logical standpoint, China has everything to gain from the belt and road initiative. Your country does well? More trade for China. Your economy failed and you can't pay back the Chinese loans? Great! You'll be forced to lease all the shiny new infrastructure to China! It's a win-win for China either way.

[@arnowisp6244]

@muzzzeeeek And lease their Shiny new port for 99 years. China still wins.

[@dailyrant4068]

@@arnowisp6244 It's not that simple though. If Ethiopia fails, then China doesn't gain much by having all the infrastructure, does it? Assuming the economy fails, by owning the infrastructure it actually becomes a liability. The only way a "colony" makes sense to a conquerer is if they can profit from it. Or look at it this way, what good is owning a port in a country where there is no demand for goods? I'm not saying China doesn't stand to benefit, but they are also incentivized to make Africa succeed as well as a whole. This is the same reason why the west invested so much in China in the early days, because their cheap labor and eventually their supply chain capability benefits their companies. It's a win-win there too.

[@ImJustAoife]

Silk Road Part 2 lets go

[@EconomicsExplained]

Electric Boogaloo

[@shivanshna7618]

With brand new plaque.

[@lazergurka-smerlin6561]

I wonder if they'll also use bitcoin

[@dickenstham5075]

Lazergurka - Smerlin The one on dark web did

[@livethefuture2492]

sounds like black death...

[@spinmouth4114]

Read the book "Confessions of an Economic Hit Man"

[@chigga76]

Brilliant and fair assessment. Both good and bad motives. Appreciate a sane discussion.

[@lukecarroll4080]

I think the belt and road project is a better way for developing countries to get money, opposed to mega corporations or just getting the "freedom treatment"

[@cjmhall]

Luke Carroll the money ain’t free though. China is becoming the developing world’s payday lender.

[@clemenswittmann4852]

@@cjmhall except it basically is at 1% interest rate. that is literally below the annual rate of inflation, so in essence they are indeed getting "free" money

[@cjmhall]

Clemens Wittmann so China is just doing this from the goodness of their heart? Please.

[@rasho2532]

@@cjmhall didn't you watch the video? He literally gave reasons why China would do what it's doing and how it benefits China.

[@cjmhall]

Rasho my point is, the money may be “free” but China will own them the minute they default. It’s like giving a gambling addict a loan at 1% and if they miss a repayment you get their house.

[@choopa1670]

I would have studied economics in high schoool if my teachers had presented it such a way as you do to make it interesting. Great channel

[@darkhorseman8263]

You should do a video on flight capital - particularly illegal capital flight, which is unique from money laundering, and is how most countries get their assets stripped. Also "trust havens" which are unique from tax havens, and have a much more detrimental effect, globally. In fact, they like when tax havens are shut down, as they capture the resulting capital.

[@kamwaichan8048]

When i started to invest in buying a house for my family, i know they are risk and my terms are for 25 years. 1st i asked myself, will i be able to pay off my mortgage within the 25 years term and if I can't what will be my alternatives. Do I rent, if I rent. That means I will be paying for someone else mortgage for the rest of my life times, sad to say i will have to pay until I die. Then if I will to buy, i will be happy to take up a mortgage. Is a big gamble, then within the 25 years term. Will i be able to keep a job to keep the roof over my family head, if I can't then I will lose my house and me and my family will be homeless. Therefore if I take out a mortgage, my full intention is to repay my debts and if I can't. I will have to work harder or to extend the mortgage for another few more years. So when it comes to borrowing my to finance a big infrastructure, i will make sure the country will make use of the infrastructures to export goods and services to the world. Most of all invest in education to educate the citizens, plus others. Likes business investment, building investment schools, hospitals, factories, research and development to support the nation etc 😆😆😆😆😆

[@johndoe5432]

There's another aspect you didn't cover in this video as it was geared primarily towards the economic component. The military and political application of these roads and ports, not necessarily for the purpose of creating invasion corridors. But, if China forecloses on a port and decides to say, I don't know station naval assets there suddenly they wield massive influence over said nation, even more so than their prior economic influence. They're quietly performing their own form of colonization in Africa as we discuss this.

[@iTuber012]

A fair video on China from someone from 'the West' ? Wow I am impressed

[@liselottehildegarde5367]

kzbin.info/www/bejne/aHaTqneso5Wrn7c

[@livethefuture2492]

he's from Australia, (which is sort of 'west' but not really)

[@AdityaDeo-cg6eu]

Indians would give you more biased answers than the westerners.

[@zakaryloreto6526]

Live The Future it’s western politically and culturally just not geographically

[@catch.22]

I like to call it "pandering to communist propaganda debt traps designed to steal from the underdeveloped rest of asia that they have threatened for years"

[@LockedArtz]

i would love it if you could make an episode about the economy of finland :)

[@edwardtumbaking2189]

The first step...to use yuan internationally..ridding dollars..eventually...this strategic move is understandable...good one!

[@madgoblin464]

After hundreds of years of Western influence in the African plateau, look at how much the countries there have actually developed? Western imperialists have been mining and profiting of the said natural resources in African countries but noone bat an eye. During those times, how much have the western companies have actually built infrastructures and cared for the well-being of the people? Did the westerners treat those people fairly? Remember slave trades, mine ownership, military unrest? Now China has built roads, ports, airports in those nations, strike trade deals, and has yet to enslave a single soul. But all of a sudden, the western countries are thousand times more care for the wellfare of the African people, where were you all these times? And now China is the one 'exploiting' . You see the logic?

[@Miki-fl9ez]

Africa developed with the West as much as it will develop with China Thinking that the West didn't build any infrastructure And that China looks your good instead of buying your raw materials Is absolute stupidity

[@wuqinghui8199]

Mmiikkii As a matter of fact, China has technically built more infrastructure in the last decade than the west had build in Africa for 3 centuries. And most of the infrastructure built by western countries were to fight wars.

[@e7venjedi]

Comparing current Western Nations with their past is silly from the moral standpoint you're taking. The globalized world has changed so rapidly and exponentially in the last 100 years that within a lifetime or two the rules have completely changed. Racism was ubiquitous and "normal" almost everywhere only 70 years ago. China scares me personally for a few reasons: Very '1984' 'Big-Brother'-esque political system with the control over free speech and flow of information to its citizens. Having an economic [and thus eventually military] superpower being controlled by a very small political elite who is very ideological. A lot of unknowns. It's very hard to know what the Chinese leadership's ultimate goals are and what means they are willing to use are/would be. They don't have a very good track record of treating their own citizens as anything other than fodder for the elite, other nations sovereignty, human rights, the environment etc. It's very opaque what they would be willing to do to get what they want should they acquire more power than they already have. This might sound overly dramatic, but a worst case-scenario thing that I see as a possibility is something similar to Nazi-Germany. It's hard to prove, but I get a weird vibe from true-believers of China in its current state that they think they are a master race -- that they are a superior human/nation. They seem to take getting ahead and being on top as a primary goal. Sure we all like to be a little proud of our homelands, but the way they pursue dominance is just creepy to me. Potentially the worst part of all this speculation is that there's seemingly no way for it not to be precisely that because it's such a shadowy nation: they actively suppress or twist the truth almost everywhere you look. We can't ask normal Chinese citizens what they think of 'X' because they are either brainwashed or we literally aren't allowed to talk to them. And of course we have zero idea what the aims of the Chinese elite would be other than the comic-book villain goal of world domination. Highly recommend the documentary "The China Hustle" [can be found on Netflix] to learn more about the way their culture does business.

[@wuqinghui8199]

The Elven Jedi personally I don’t think so though, Chinese leadership is not an “elite” system. Most of the the political leaders are from the poor or middle class, with only some exceptions like Xi Jing Ping being born an elite, but even he had to work decades in villages and towns in rural areas. In fact personally I think China is the direct opposite of an elitism based society, because Chinese government don’t care about getting votes from them, they only need to improve the standards of living. I mean as of now they have lifted 1 billion people out of poverty and if they are truly an elite society, they won’t do that. Chinese middle class is also expanding and getting richer by day, being one of the last middle class in the world which actually see income growth outside of inflation. Chinese people don’t think it’s a master race, it deeply fear the west, fear the USA, that’s why you have anti western sentiments there. Well freedom of speech is a thing in China, it just have three basic rules that the west do not have though: 1. No comment should spread hate for the purpose of spreading hate 2. No comments that will openly disrupt social order 3. No comments which openly insult the current president aka Xi. Now to you it might think this is a lot of oppression, but it is definitely not something as serious as Nazi Germany, you are allowed to speak up and expose party leaders for failures and in fact you are encouraged to expose party officials for poor conduct. You can also openly talk about Indian conflict and how you think India is stronger than China which is quite a hot topic right now. You can talk about Taiwan, about Hong Kong, about USA, about a lot of stuff online. In fact recently you have the wu Han mayor removed because of Chinese social media. China seem to be closed up because people outside of China because people already have their bias and prejudice set. There is south China morning post on KZbin, but when non Chinese watch it, they have the mindset that it is all propaganda and biased information, and therefore they don’t listen to any information it says. And it is true that it is biased, but I don’t think cnn or Fox News is any better in that regard. I don’t think free media’s are less biased. Accurate Content about China is out there, but people need to actually bother to watch it.

[@danielbromwich1827]

@@wuqinghui8199 Built infrastructure invented by the west and using the infrastructure the west built there. and care to provide any evidence that "most of the infrastructure built by western countries were to fight wars."? Not only does your hypothesis not make sense, it's also obviously not true.

[@LudosErgoSum]

My own belt and road initiative has failed: I'm out of holes in the my belt so I can't go outside without my pants falling down.

[@livethefuture2492]

*belt and hole initiative

[@drunkensailor3736]

Let's also not forget that the Belt and Road initiative is a major motivation for the clearing of a path through Xinjiang and is this a factor in what China is doing to the Uyghur people. There's a great video which explains the situation there with the "re-education" camps: kzbin.info/www/bejne/fYGvm6CEgMRgj68 Ethnic cleansing?

[@King-bx4ch]

Glue your belt around you

[@KayyHong]

Get a loan from China, build a longer belt and put in more holes!

[@Astigmatisism]

I'm so incredibly relieved that you took a neutral stance on the matter

[@bhattkishan9]

At times I feel like Economics Explained videos are like those exemplar reports that your lecturer gives you. 🤣

[@makhosimpofu9327]

You’ve made me fall in love with economics, keep doing ur thing!

[@EconomicsExplained]

Glad to hear it, more people out ther that understand the world around them can only be a good thing :)

[@livethefuture2492]

this channel has definitely taught me a lot and i love the videos, but his video on modern monetary theory really made me question my worth...

[@furiouschicken1]

In my country, it doesnt matter how much you explain economics. Most peeps in social media will just talk about their "truth" and everyone else is wrong.

[@eshawn____2373]

China’s key goal is to benefit from the expansion of its trading partners and its international influence. The payoff from the debt instruments is negligible. Full debt payment or repossessed assets? It doesn’t matter. The trading pipeline and influence will still exist.

[@georgia2727]

We must promote the Belt and Road Initiative as a way to spur competition between the west and China in terms of building infrastructure across the world. This is much better than an arms race. If there is a going to be a global race between the west and China it better be an infrastructure and science race instead of a weapons race. This is something where China is setting a great precedence.

[@zatoichiable]

Well done... eye opener...

[@austinjk]

It is amazing how active Economics Explained is in the comment section compared to other KZbinrs

[@mr.factoid105]

"Nefarious" is a relative term. You are right that this is mostly a economic endeavor aimed at creating a economic sphere revolving around China, and that definitely ruffles feathers in Moscow, Washington, and New Delhi. However, there are some relatively minor strings attached as always. China has a habit of placing punitive economic measures on nations that aggravate them, again nothing unique there. What I and others what to know is "does the economic sphere lead to military interventionism?": history and current events point to yes but we don't know.

[@drunkensailor3736]

Let's also not forget that the Belt and Road initiative is a major motivation for the clearing of a path through Xinjiang and is this a factor in what China is doing to the Uyghur people. There's a great video which explains the situation there with the "re-education" camps: kzbin.info/www/bejne/fYGvm6CEgMRgj68 Ethnic cleansing?

[@TKUA11]

PappaOwl not only that but the host countries will be exploited for their resources, get paid pennies on the yuan, and won’t have fair and humaine labor standards

[@davineves8529]

@@TKUA11 well what has changed?

[@matrinaortiguesa5876]

Yes this is my concern as well!!!

[@fadefaker3486]

@@drunkensailor3736 There is re-education chance given to them. US would straight nuc the whole xinjiang and wipe them clean just like when some afghanistan starts using soap.

[@ichbinluis2343]

“Most of you are on developed countries” *laughs in Venezuelan*

[@zakibou8012]

it's laughs in moroccan for me

[@beatsbyvinny5951]

You are a millionaire

[@AdityaDeo-cg6eu]

Laughs in india

[@1000xtati]

laughs in Brazilian XD

[@matthewalvis9729]

JAJA OYE MI CHAMOOO 🇻🇪🇻🇪

[@beautifulworld4455]

Huawei , TikTok, the French alstom , Japanese Toshiba .... . Victims of a merica power attack

[@marvelv212]

Everyone should sanction US and be done with it. Drop US dollar. UN should all vote to kick US out.

[@roguegenesis7020]

TikTok sucks tho

[@WineZ22]

This will become a debt trap for those countries that can not use the money wisely. In my opinion China itself is not evil here. They want their resources with cheap price and less hustle. The western countries start to give them trouble due to the fact that they listen to the US and US wants to stop China dominance. So going to underdeveloped nation with good resource capability is a choice for China. This process can be compared to how big investment is given to startups. The good startups can manage their investment and turn them into profit while the bad ones use those money to buy private jets. So just consider China as a bigger version of SoftBank with their Trillion dollar vision funds. If those countries can manage those money and develop their infrastructure properly it's a win-win solution. The evil here is the government of each nation that receive the funds. Be like Neumann or Jack Ma. It's up to those government to decide the future of their people. Thanks for explaining this investment with the parable of Home loans. It really helps me realize the nature of this deal.

[@Dango428]

"Fortunate enough to be in developed nations" Me watching from Pakistan: :'( Though to be fair, he did say "for most of you"

[@saleh.hashmi]

Pakistan is fkd bro tbh... we all know this ... PPP & PMLN took their bribes and signed the deal

[@AlohaBlockchain]

One word: religion

[@omarayadi5097]

AlohaEigo nope just corruption

[@SebAnders]

What it's like to live in the West: kzbin.info/www/bejne/aKureZ6JqpaVqJY

[@tdoge]

@@AlohaBlockchain religion is a vehicle for corruption

[@dsl201]

Great video!

[@sammy50001]

"freedom treatment" -- I saw what you did there.

[@mikewassef8172]

First of all, love your videos. You really make economics, an inherently dry subject, actually fun. In terms of the Belt and Road Initiative (BRI). Having grown up in a former European Colony, Egypt, I can't help but see ominous similarities to the past. When the French and British proposed the construction of the Suez Canal, it was a great infrastructure project that would improve our trade and bring us prosperity and development. In reality, it killed over 100,000 workers (low estimate) in forced slave labor camps, ended up bankrupting Egypt, and led to direct military occupation by the British for 70 years when the Egyptian people tried to rise up and depose the dictator that caused all this to happen. The only ones benefiting were the industrial powers that got their raw materials transported faster and cheaper (sound familiar?). In my opinion, it's a win-win-win for China: 1) They get to export their excess manufacturing capacity and employ a lot of their people (most of these contracts force other countries to hire Chinese Engineers, contractors...etc). So, less unemployment i.e. social instability at home for the Chinese 2) They improve their energy security and access to essential natural resources that they lack away from countries more aligned with Western ideals like Australia, Canada, and Brazil as u mentioned (less headache about human rights, freedoms....etc) 3) They get unlimited political backing from these nations in international forums so no one dares question Chinese actions (see how Greece, Serbia and Italy are protecting them in the EU) much less how others are in the UN 4) Their banks get to loan out more money possibly making a small profit to balance the huge amounts of loans they are ordered to give at home to SOEs at a loss. So, basically, other countries pay for the Chinese expanding their political and economic power. Most of the costs for these projects are extremely inflated (see how Malaysia forced the Chinese to lower the costs by billions when they renegotiated the contracts) 5) If the countries default, the Chinese get prime, well-developed real estate, partially paid for by other countries that they can even convert to militarily use (see Hambantota port) And what do the other countries get: 1) They become barrels of oil, cobalt, copper or whatever raw material China needs from them. 2) They'll never be able to create their own industry to compete with cheaper, better developed, state-backed Chinese firms (and won't be allowed to protect their industries the same way) 3) Their dictators get a steady source of income that needs only few workers so their stranglehold on their people is even stronger. They might even import Chinese expertise and surveillance equipment from the world's most brutal police state (How is this any different from the way the West propped up Autocratic monarchies in the Persian Gulf?) I do agree with your title, if this works, all the roads WILL lead to China, but we probably won't like what awaits us at the end of those roads

[@g43654]

Wow, this is a very thorough critical analysis of the situation, even better than the channel's (which missed many of the points you outlined). Beware of a hidden dagger under a welcoming smile.

[@noahpolicarpio1530]

Nice analysis. It's always good to remember that countries are always acting in their national interests, not in the goodness of their hearts.

[@minna6557]

Another benefit didn't mention. It is that more economic cooperation opportunities, mean more job opportunities, higher employment, and result in a harmony and peace in the Economic Zone. China has the largest population, but along the automation and technology, the machines and robots are taking over people's jobs. If such large labor losing jobs, there will be conflicts inside the nation, and in order to divert the conflicts or problems, one common way other big countries do is initialing wars with other countries to export their large working/labor force for compensating the lower employments and to use wars or conflicts outside its country to balance the economy and labor force.

[@vincenttso249]

Very fair and unbiased presentation!

[@TheSidyoshi]

I think it's a mistake to distinguish "influence" and "economic incentives", they are one and the same. Influence is the control of resources, so having influence is equivalent to having real resources. You can't always know the dollar value of every resource in advance, unless you're an accountant. Since economics is not accounting, you have to factor in this notion of "influence". This is the core idea that exporting jobs seems to miss. You keep mentioning this idea that every nation should maximise its productive potential, by specialising and producing only what they can sell on the global market. However, this notion of productive potential is vague. If one nation can make something and no one else in the world knows how to make it, then is that a monopoly or just "maximizing economic potential"? On the one hand you say that a nation should stick to what they do best, which, for developed nations is to sit around and look busy in unnecessary service jobs that are only there to keep the economic engine warm - which is apparently good? Then, on the other hand, you praise the idea that the productive capacity of another nation is fueled by industrial activity that causes standards of living to rise - traditional ideas. Both are not sensible simultaneously. The high living standards and the high cost of labour are two sides of the same coin. The same is true vice versa. The relinquishing of the control over the resources necessary to produce the goods and services that a nation is reliant upon, to maintain high standards of living, is fundamentally bad, from an economics point of view, for any nation. It's like having a large corporation (or a few) undercut prices till they have monopolised a market and then allowing them to dictate prices thereafter. No one will be able to reenter a monopolised market, it's a fundamentally difficult, markets can be locked up in many ways, through patents, or legal loop holes, or simply controlling a vertically integrated supply chain. Laissez Faire economics only works in narrow situations, the real world doesn't work that way. At least, not for the majority of economic phenomena. Perhaps, I'm missing something crucial in my ramblings above. Sacrificing tomorrow to live large today is just another kind of suicide, economically speaking.

[@theprettypetard2524]

that third paragraph is such a good argument nicely put that i would like to ask if you are okay with me stealing it for potential later use. it highlight perfectly the fundamental problem with china's belt and road without going to much into politics by simply pointing out the massive flaw that can be exploited.

[@Lorax_Tribe]

No. In a free market, there would be no monopolies, because everyone would be free to develop better ideas. That's why monopolies are bad and illegal. Someone is cheating to take over a market, which doesn't just happen naturally.

[@somethingelse9228]

@@Lorax_Tribe No market is perfect and economic theory or predictions relies on several assumptions that sometimes (imo, most of the time) break in the real world

[@TheSidyoshi]

@@theprettypetard2524 Sure no worries :-)

[@krinkovakwarfare]

This is what bugs me sometimes. Economists often view things in a vacuum and discarding historical, sociological, or political analysis as noise or irrelevant.

[@joaquincimas500]

-Going to check a video about China. -KZbin: Allow us to introduce you first about a new Xiaomi mobile phone...

[@kaelanirevyruun1676]

Joaquin Cimas don’t forget the ads for Yong Heroes with actors that have heavy Chinese accents in them... “We have new patient coming in! 200 millon power, 250 heartbeat...” “What is wrong with him?” “Why she do this to me? We make appointment to get legendary ! And then she top up 1USD! Now she top one in server!” >.>

[@livethefuture2492]

China: allow me to destroy the rest of the world economy while i go on and take over the world.

[@drunkensailor3736]

Let's also not forget that the Belt and Road initiative is a major motivation for the clearing of a path through Xinjiang and is this a factor in what China is doing to the Uyghur people. There's a great video which explains the situation there with the "re-education" camps: kzbin.info/www/bejne/fYGvm6CEgMRgj68 Ethnic cleansing?

[@ssrbgangimaribotan6thofthe12]

@@drunkensailor3736 idk why does this reminds me of American interment camp of American Japanese lol

[@hendrikdependrik1891]

@@drunkensailor3736 Do the Chinese that after Xinjiang they end up in Afghanistan? You know, the place where empires die.

[@AustiuNoMatterWho]

I subbed as one of the 1000 subscribers who can say we were a part of the 420,000 subscriber count lol

[@Mike-fn4ti]

United States :you can't defeat me Japan: I know, but he can China:

[@chrono-glitchwaterlily8776]

I thought they hated each other lol

[@timsuniverse9364]

@@chrono-glitchwaterlily8776 it is just sibling rivalry.

[@chrono-glitchwaterlily8776]

@@timsuniverse9364 so it's not that severe? I thought it was

[@chrono-glitchwaterlily8776]

@@hulucas7841 how

[@chrono-glitchwaterlily8776]

@josh I meant like what's the difference

[@guillaumenoire7059]

One of the primary goals of the initiative is to make China less susceptible to the crippling economic effects of a US-led oceanic blockade. China depends on shipping for its prosperity, and it wants to be less dependent. To do this it needs to develop overland trade routes.

[@Birnasuc]

"the freedom treatment" :))

[@mrlittleclone]

Yooo did this dude happen to do voiceovers for Atomi's HSC business studies cource?

[@BobBinghamNZ]

The USA holds naval exercises to block all maritime traffic through the Straits of Malacca which of course puts a strangle hold on China's trade to the rest of the world. In response China has opened up a rail route to Europe which goes across Asia and is beyond the reach of the USA and this route gives China access to the resources throughout the centre of Asia. It also enables goods to flow two ways along the rail route to the benefit of all, just as the railroads opened up the West in the USA and in Europe 150 years ago. Belt and Road rail and sea routes reach about four billion people, many of whom are very poor and need trade to raise their standard of living. The USA could do the same with a rail or road route to South America but chooses to interfere in South American politics and not help the countries prosper.