Mapping Chinese Investment in South Asia

Description

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. 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