A new American-led effort to counter China’s use of infrastructure subsidies to purchase influence in the Indo-Pacific drew a derisive response from the Asian power.
“It is a good thing that the U.S., Japan and Australia are willing to increase their input in the infrastructure building of the region,” Chinese Foreign Ministry spokesman Geng Shuang said during Tuesday’s press briefing. “If my memory serves me correctly, this is not the first time for them to make this statement. As a Chinese saying goes, talking up big is not as good as rolling up sleeves.”
Secretary of State Mike Pompeo pledged that the United States would “seek partnership, not domination” while facilitating government-backed and private sector investment in the region. The event, the Indo-Pacific Business Forum, was a clear effort to offer countries in the region an alternative to accepting loans and subsidies from their wealthy communist neighbor, which has used the investments to gain control over key ports and other strategically significant infrastructure.
“Like so many of our Asian allies and friends, the United States fought for its own independence from an empire that expected deference,” Pompeo said during Monday’s event. “We thus have never and will never seek domination in the Indo-Pacific, and we will oppose any country that does.”
Geng brushed off the rebuke. “The Chinese side is willing to continue to follow the principles of openness, inclusiveness and win-win cooperation to maintain communication and coordination with all relevant parties and make concerted efforts with them to enhance the connectivity and promote the economic growth of the region,” he said. “All like-minded countries are welcome to take part in the Belt and Road Initiative.”
U.S. officials regard the Belt and Road Initiative as an example of “predatory economics,” a model in which China funds infrastructure projects for its neighbors, only to claim sovereignty over the project when the cash-strapped country fails to keep up with the debt repayments. Most notably, China gained control over a port in Sri Lanka, an island southeast of India near some of the most valuable shipping lanes in the world.
“Within 12 miles of the coastline of Sri Lanka passes an extraordinary amount of the world’s commerce,” Rep. Peter Roskam, R-Ill., told the Washington Examiner in 2017. “Geopolitically, the Chinese have loaded up the Sri Lankans with all kinds of debt, and they’ve built a number of white elephant type infrastructure projects. A stable Sri Lanka, a westward-looking Sri Lanka, a Sri Lanka with a stable democracy is important to U.S. national interests.”
Pompeo argued that Indo-Pacific countries need to reform their politics in order to attract private investment, which could exceed any funding level China might provide.
“For that [investment] to happen, Indo-Pacific leaders must prioritize transparency, anti-corruption, and responsible financing,” he said. “The U.S. government’s Indo-Pacific initiatives will be shaped by these values and buttressed by partnerships with American companies.”
Geng leaned implicitly on China’s willingness to offer more direct funding. “If the U.S. and other countries are willing to increase their input in promoting the infrastructure building and connectivity of the region, we welcome that with an open and inclusive attitude,” he said. “We hope that they can make substantial financial contributions and take more concrete steps to truly contribute to the welfare of the people in this region.”
