According to ChinaPower, China places importance on the railway projects it sponsors worldwide as part of the Belt and Road Initiative to deepen its ties with partner nations on the economic, political, and cultural fronts. As of 2020, 138 nations, including 29 of the 34 that signed rail construction contracts with China, are a part of the BRI, with a total GDP of about USD 29 trillion and 4.6 billion citizens.
Since 2013, most of China’s rail construction contracts have gone to middle-income nations. Of all warranties, lower-middle-income countries received 41.7% (or USD 25.7 billion), while upper-middle-income countries received 29.1%. (or USD 17.9 billion). According to ChinaPower, the remaining was distributed among other economies. Asia accounted for around 46.9% (or USD 28.8 billion) of China’s rail construction contracts when broken down by continent. Nine Southeast Asian nations received the majority (61.1%) of the contracts in the area.
China is building the East Coast Rail Link, which will run for 640 km and cost a total of USD 10.6 billion, in Malaysia, the top receiver in the area, according to ChinaPower. From 2013 to 2019, Africa earned the second-most rail contracts. This accounted for 33.8 per cent of the total with a USD 20.8 billion total. The largest contracts in Africa are concentrated in a small number of nations, much like Asia.
China is building several lines in Nigeria as part of the 1,300 km-long Lagos-Kano Railway Modernization Project, with contracts totalling about USD 7.5 billion (or 36.1% of the total in Africa). According to ChinaPower, this enormous project has made Nigeria the top beneficiary of Chinese rail construction contracts worldwide from 2013 to 2019.
Chinese policymakers have prioritised rail construction as part of the BRI. Chinese President Xi Jinping said in a speech in 2014 that his country “attaches great importance to the railway and highway projects linking China to neighbouring countries” and that these projects “will enjoy priority consideration in the planning and implementation of the “Belt and Road” Initiative.”
China would contribute to a USD 6.8 billion project to upgrade 2,655 kilometres of Pakistan’s existing railway lines as part of CPEC. China is undertaking one of its most ambitious BRI projects in Southeast Asia, the Kunming-Singapore Railway (also known as the Pan-Asian Railway). According to ChinaPower, if the railway were finished, it would have three main corridors spanning about 3,000 km from the southern Chinese province of Kunming down to Singapore, going via Laos, Thailand, and Malaysia.
Suppose these and other train-building projects are completed successfully. In that case, connectivity between China and its neighbours will greatly increase Beijing’s geopolitical and geoeconomic clout while bolstering China’s internal economy. The Kunming-Singapore route, for instance, is anticipated to boost two-way commercial and tourism flows between southern China and mainland Southeast Asia once it is finished. As a result, China would have more economic sway over the nations of Southeast Asia, giving Beijing more clout there. Meanwhile, the BRI’s primary objective of promoting economic growth in China’s border regions with less developed economies would be furthered by the increased cross-border activity, according to ChinaPower.
Importantly, railway-building projects also assist Chinese businesses in expanding into new markets. Two Chinese SOEs, in particular, according to CGIT data, have benefited from overseas rail construction projects. From 2013 to 2019, China Railway Construction Corporation signed 21 rail construction contracts totalling USD 19.3 billion, or around one-third of the global total. According to ChinaPower, China Railway Engineering Corporation signed 19 contracts totalling USD 12.9 billion, or about one-fifth of all contracts.
Although building a railroad could be advantageous for Beijing politically and economically, various projects have encountered difficulties and opposition. Surveys show that rail and other infrastructure initiatives have affected China’s foreign reputation differently. Several rail projects have also come under fire as “debt-trap diplomacy” tools. China allegedly tries to acquire power over developing nations by piling unmanageable debt on them.
