This book attempts to capture the tremendous growth in Chinese investment in the South Asian region in the recent past. It makes country-wise analysis of the factors that led to the growth of Chinese investment in the region and explores the nature and role of such investment in expanding trade in the region. It also discusses in detail the Chinese infrastructure investment through Belt and Road Initiative (BRI). Interestingly, despite being the major investor in several countries, Chinese investment has been seen with some level of doubt. Apprehension about Chinese investment has forced countries to suspend China-funded projects or amend their investment policies. This book tries to address these crucial issues while exploring and analyzing the causes and effects of the same.
Author(s): Rahul Nath Choudhury
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 215
City: Singapore
Acknowledgements
Contents
Abbreviation and Acronyms
List of Figures
List of Tables
1 Introduction
Chinese Investment in Afghanistan
Chinese Investment in Bangladesh
Chinese Investment in India
Chinese Investment in Nepal
Chinese Investment in Pakistan
Chinese Investment in Sri Lanka
China’s Growing Strategic Influence in the Region
References
2 The Belt and Road Initiative in South Asia: Benefit for China or Threat to Participants
China’s Trade and Investment with BRI Participants
Foreign Direct Investment
Chinese FDI in South Asia
BRI Projects in South Asia
Pakistan
Afghanistan
Bangladesh
Nepal
Sri Lanka
Maldives
BRI and China’s Trade Agreements
Why BRI Is Being Criticised?
The Debt Trap Diplomacy
Inflated Cost
Ambiguous Bidding Process and Widespread Corruption
Environmental Degradation
Slow Down of BRI
Reaction of Non-participants to BRI
Conclusion
Annexure 2.1
Select BRI Projects
BRI Projects in South Asia
References
3 China’s Conundrum in Afghanistan
Evolution of Diplomatic Ties
Sino-Afghan Economic Engagement
Sino-Afghan Trade Ties
Chinese Investments in Afghanistan
Chinese Development Aid to Afghanistan
Afghanistan as a BRI Partner
Challenges to BRI in Afghanistan
Concluding Thoughts
References
4 China in Bangladesh: Developing Infrastructure or Deepening Influence
Developing Diplomatic Ties Since Liberation
Extending Defence and Military Cooperation
Indian Influence on Sino-Bangladeshi Ties
Developing Economic Cooperation or Deepening Dependence
Current Scenario of Bilateral Trade
Foreign Direct Investment in Bangladesh
The Policy Milieu
FDI Inflows in Bangladesh
Capturing Chinese FDI in Bangladesh
Chinese Infrastructure Investment in Bangladesh
Navigating BRI in Bangladesh
Conclusion
References
5 Growing Sino-Indian Economic Ties: Under the Shadow of Border Tension
Sino-Indian Relation: Flourishing over Time
India-China Economic Relationship
Why Countries Are Apprehensive of Chinese Capital?
Trend of Chinese FDI Flows in India
Why India Did Not Participate in BRI?
Territorial Integrity
Security Concern
The AIIB Factor
Conclusion and Policy Implication
References
6 Chinese Investment in Nepal: Capturing the Himalayan Hills
Establishment of Diplomatic Relation
Nepal-China Economic Engagement
Nepal-China Trade in the Contemporary Period
China’s Aid and Assistance to Nepal
FDI Inflows in Nepal
Nepal’s Engagement in Belt and Road Initiative
Challenges to BRI in Nepal
Concluding Remarks
References
7 Chinese Investment in Pakistan: Approaching Towards Bankruptcy
Establishment of Diplomatic Relationship
Sino-Pakistani Military Ties
China-Pakistan Economic Relation
Sino-Pakistani Trade Relation in Twenty-First Century
China-Pakistan Investment Relations
Foreign Direct Investment in Pakistan
FDI Inflow in Pakistan
Chinese Infrastructure Investments in Pakistan
BRI in Pakistan: A Game Changing Opportunity or Threat to Pakistan?
Implementing Critical Projects Under CPEC
Gwadar Port and the Port City
Energy Cooperation Through Establishing Power Plants
Establishing Inland Connectivity
Challenges to CPEC
Conclusion
References
8 China’s Investment in Sri Lanka: Trap of Debt
Development of China-SL Bilateral Relationship
China as the Biggest Investor in Sri Lanka
Sri Lanka as FDI Destination
Volume of Chinese Investment in Sri Lanka
Strengthening Relations Through BRI
Critical Assessment of BRI in Sri Lanka
Burdening Sri Lanka with Chinese Loan
Hambantota Case Study
Colombo International Port City
Summary and Conclusion
References
