China's Belt and Road meets resistance

THE Belt and Road is an important Chinese economic diplomacy initiative which should boost development and reduce risks of terrorism in partner countries. Some have called it "China's Marshall Plan", likening the initiative to the multi-billion-dollar US aid programme which helped rebuild Western Europe after World War II. China's total investment in the Belt and Road over the next decade is expected to reach US$1.6 trillion.

Many have welcomed China's bold initiative, which promises to address Asia's massive infrastructure deficit and could provide a boost to economic growth through market integration. But according to some analysts, countries should avoid China's infrastructure investment model.

Poorly managed infrastructure investments are one of the main causes of China's current economic problems. Unless China shifts to a lower volume of higher-quality investments, the country is likely to suffer an infrastructure-led financial crisis.