• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Silk Roads: Chinese Project or Economic Burden for Africa?

user avatar

by Giorgi Kostiuk

10 months ago


  1. The Silk Roads Project
  2. Operational Methods
  3. Construction Quality and Consequences

  4. The Silk Roads project, initiated by China in 2013, aimed to invest in infrastructure around the world. It was supposed to strengthen economic ties and increase China's influence.

    The Silk Roads Project

    The Silk Roads project was one of Chinese President Xi Jinping's first major initiatives. Its goal was to invest in infrastructure projects globally to stimulate the economies of recipient countries and open new business opportunities for China. Such spending was expected to strengthen China's friendship and geopolitical ties, while ensuring access to essential natural resources.

    Operational Methods

    China typically lends money to countries to build infrastructure, with Chinese contractors handling most of the work. This is beneficial for China in the short term, as the contractors earn significant revenues, and the government gets repaid when the borrowing country repays the loan. However, for borrowing countries, this often poses high risks. If infrastructure projects fail to generate sufficient revenues, these countries must repay China with taxpayer money or relinquish the built structures to China, adversely affecting their international credit ratings and potentially leading to economic crises.

    Construction Quality and Consequences

    The construction quality of many projects is subpar. In Uganda, over 500 defects were found in a 183-megawatt hydroelectric plant built by China. In Angola, residents complain of cracked walls and moldy ceilings in a social housing project. Even the supposed success, Indonesia's high-speed rail, faced major cost overruns and delays. Such issues lead to higher costs for borrowing countries and worsened economic situations.

    China's Silk Roads initiative, initially intended to strengthen economic and political ties, is increasingly seen as a form of neocolonialism and economic pressure on participating countries. The poor quality of many projects and high debt levels make this initiative more beneficial for China than for the borrowing countries, potentially affecting China's global image in the future.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Bitcoin Rises Above $108,000: Market Impact

chest

Bitcoin reached $108,000, affecting market fluctuations and growth expectations among institutional investors.

user avatarGiorgi Kostiuk

Technical Analysis of XRP: Significant Price Change Expected

chest

Analyst Cantonese Cat discusses XRP price movement based on Bollinger Band squeeze.

user avatarGiorgi Kostiuk

Upbit Limits Withdrawal for Suspected Fraud Accounts

chest

Cryptocurrency exchange Upbit has enforced withdrawal restrictions starting March 20, 2025, for accounts suspected of financial crimes.

user avatarGiorgi Kostiuk

Ethereum Fund Inflows Double Bitcoin's

chest

Ethereum attracts $226 million in a week, showing rising interest from institutional investors.

user avatarGiorgi Kostiuk

The Smarter Web Company Invests in Bitcoin: $24 Million Purchase of BTC

chest

The Smarter Web Company has acquired 226 BTC for $24 million, confirming its strategy to integrate Bitcoin into its financial policy.

user avatarGiorgi Kostiuk

BlockDAG Raises $330 Million Ahead of Launch

chest

The crypto market focuses on BlockDAG, which has raised $330 million during its presale before launch.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.