6 China’s digital Silk Road
In analysing the IT infrastructure developments of BRI countries, research-
ers at the International Institute for Strategic Studies in London have put DSR
projects in three categories:
19
over-the-top platforms, services and infrastruc-
tures. Over-the-top platforms consist of e-commerce, e-governance and finan-
cial technology. Services include smart cities, security information systems
and data centres. Infrastructures cover fibre optic cables, telecommunication,
5G networks and satellite-tracking ground stations. The following chapters of
this book will discuss some of these projects.
Dezan Shira & Associates, a consultancy firm that focuses on business in
China and Asia, reports that, as of early 2020, China had spent $4 trillion on
3,164 infrastructure projects. Of these, 1,590 valued at $1.9 trillion were BRI
projects, while the other 1,574 with a combined value of $2.1 trillion have been
classified as ‘projects with Chinese involvement’.
20
Refinitiv, another business
consultancy, estimated that, as of mid-2020, over 2,600 projects costing $3.7
trillion were linked to the BRI.
21
To make some sense of the scale of these investments, some comparisons
would be helpful: the world spent almost $2 trillion in defence in 2020;
22
the
Pentagon spent $1.6 trillion in building F-35 fighter jets,
23
at $100 million
a piece;
24
and President Joe Biden signed a Covid relief bill in January 2021
worth $1.9 trillion (the American Rescue Plan).
25
He also unveiled in March
2021 an infrastructure plan worth $2 trillion (whittled down to $1.2 trillion
in June 2021 and approved by Congress in November 2021) to revitalise
the country’s economy (the American Jobs Plan).
26
To mark 100 days of his
presidency in late April 2021, Biden proposed a family relief plan worth $1.8
trillion (the American Families Plan),
27
yet to be approved by Congress as of
November 2021. In August 2021 he put an end to America’s longest (20 years)
war in Afghanistan costing $1 trillion.
28
In contrast, the amount needed but
found wanting to provide enough Covid-19 vaccines for the poor in the world
would come to a relatively small sum of $45 billion, according to the World
Health Organization.
29
Dezan Shira & Associates also reports that, from 2013 to 2020, the total
volume of trade between China and BRI countries amounted to $9.2 trillion,
while the combined investments by Chinese enterprises in these countries have
reached $136 billion. China now trades with 147 countries and territories as
BRI members. This is a big rise over the years from 70 countries in 2013 when
the BRI was launched.
30
Global Times, a Chinese news media, has reported
that, in the first half of 2021, China’s trade with BRI countries and regions
achieved a staggering year-on-year growth of 27.5 per cent, reaching 5.35
trillion yuan ($0.83 trillion).
31
During the same period, China’s agricultural
imports from these markets jumped by 30.9 per cent year on year.
32
These
records were made while Covid-19 was still raging.