China BRI - Caribbean Belt & Road Initiative
By ASCF Senior Analyst Laurence F. Sanford
The Belt & Road Initiative (BRI) is a Chinese imperial strategy to colonize the world economically and militarily. Imperialism occurs when a strong nation takes over a weaker nation and dominates its political, economic, and cultural life. Colonialism is the acquiring of partial or full control over another country and exploiting it economically.
Often called “debt trap diplomacy”, BRI has largely focused on low interest predatory opaque loan investments in infrastructure and port development. Included in the agreements are provisions for developing trade relationships, sourcing natural
resources for export to China, expanding fishing rights, and influencing political leadership and culture through Confucius Institutes.
China has become a major global lender to developing countries with total cumulative loans worth more than $800 billion. A significant portion of the loans are hidden from public view and are linked to kickback schemes of political leaders and elites. The loans are often built on risky foundations for repayment which leads to loan default and Chinese forfeiture seizure of assets such as was done in the Sri Lankan port of Hambantota.
BRI in the Caribbean
Antigua and Barbuda - Joined the BRI in 2018 after Hurricane Irma devastated properties. A major project was modernizing the deep water port of St. John’s utilizing China Civil Engineering Construction Company and financed by the Export-Import Bank of China. Other investments are in tourism and road building. An estimated $1 billion has been invested to date.
Bahamas
The Bahamas have not yet signed up for the BRI but Chinese Hutchison Whampoa has invested over $2.6 billion into the Freeport Container Port and currently manages the port.
Another port, North Abaco, which is slightly over 100 nautical miles from Cape Canaveral, Florida, was modernized at a cost of $39 million and is close to a U.S. Navy submarine training area. China is negotiating for fishing rights. China invested over $2.5 billion in Baha Mar, the largest resort and casino in the Caribbean. A lawsuit for $2.5 billion was filed by former owner, peanut billionaire Sarkis Izmirlian, for massive fraud by China Construction America and China Export-Important Bank which forced the resort into receivership. Mr. Izmirlian is reported to have lost $800 million.
Barbados
Joined BRI in 2019 after recognizing China and severing diplomatic relations withTaiwan. Since then, Barbados has received $490 million from China for investments in prefab housing, roads, resorts, Covid vaccine, and establishment of a Confucius Institute. In conjunction with the Caribbean mobile phone company Digicel, Huawei has agreed to expand 5G coverage.
Cuba
China wrote off $6 billion of Cuban debt in 2011. Write offs of Cuban debt by all countries now total over $40 billion. On December 25, 2021 Cuba and China signed a joint BRI promotion. Chinese businesses are heavily involved in Cuban telecommunications, mining, energy and resorts. The Santiago port received $120 million for construction by the China Communications Construction Company.
Dominica
Since signing a Memorandum of Understanding (MOU) with China in 2004, English speaking Dominica has received funding for a new stadium, new roads, bridges, and schools. Public disclosure of the MOU has not been forthcoming. With Chinese largess, Chinese nationals move in providing cheap labor and begin to transform local businesses and culture by importing Chinese goods and replacing local industries.
Dominican Republic (DR)
China was recognized by the DR in May 2018 and signed 18 MOU’s in areas ranging from the BRI, agricultural cooperation, financial integration and interchange of peoples including the establishment of a Confucius Institute. Over one million Sinovac Covid 19 doses were provided. China offered a $3.1 billion loan and investment package. It included $1.6 billion for infrastructure, $400 million for a freeway and $300 million for a natural gas power plant.
Other projects include a stadium, hospital, bridges, Huawei facial recognition systems and agricultural support. Public disclosure of the loan was not made public thus fueling cries of corruption. A special “China Office” was established in the Dominican presidential palace but it has since been closed.
Grenada
A MOU was signed in September 2018 between China and Grenada promoting collaboration between the two countries.
Grenada Ambassador David said it is an opportunity for Grenada to plan long term development and access to financing not otherwise available in traditional markets. Chinese monies have been used for agricultural development and the upgrading of the Maurice Bishop International Airport. ($67 million). Also the Chinese yuan currency is now a component of Grenada’s external portfolio.
Haiti
China has pledged billions of dollars to Haiti to revamp infrastructure but requires
“One China” which means as long as Haiti recognizes Taiwan, and not China, it will not receive monies.
Jamaica
A BRI agreement was signed in November 2019. China has invested $2.7 billion in Jamaica which includes the $299 million Alpart Alumina refinery which was later closed due to environmental and health issues. Jamaica has extensive bauxite deposits and the export of bauxite ore is a major industry. A North/South highway was built primarily with Chinese labor and financed by a $730 million loan. It is largely under- used since the $32 toll fee collected by a Chinese developer is beyond the reach of the average Jamaican. A $5 million Confucius Institute facility was built at the University of the West Indies. In Montego Bay, China gifted a new children’s hospital built by Chinese workers.
Trinidad and Tobago (TT) - The first Caribbean country to formally join BRI, TT has increased economic, political and security relationships with China. Work projects (with questions about the economic viability) include a $500 million Chinese built drydock and a $102 million industrial park with the purpose to attract Chinese companies.
Gifts include hundreds of police motorcycles, police stations and cultural venues. In the energy sector, China invested $850 million to acquire a 10 percent interest in Atlantic LNG. A Confucius Institute was established at the University of the West Indies. Huawei dominates the telecommunications market thus all TT data passes through Huawei hardware.
In transportation, China’s COSCO shipping company has service to the Port of Spain; the Piarco airport was modernized; and Chinese Hainan Airlines has signed a
cooperation agreement with Caribbean Airlines. With the influx of Chinese workers, TT businesses are being negatively impacted. Money laundering, prostitution and gambling are on the rise.
Summary - The Cold War is back with China filling and expanding the role of the Soviet Union in challenging the United States militarily, economically, and culturally.
It is fruitless and counterproductive for the United States to try to prevent Caribbean countries from doing business with China. Money talks and the U.S. has not been aggressive in countering Chinese threats here and elsewhere in the world. After all, the United States recognized China in 1979 and does billions of dollars a year in trade.
China has strong monetary relations at the highest levels of the U.S. Government. The BRI offers poor nations financial aid for infrastructure projects with monies that are not available otherwise.
The U.S. needs to step up its diplomatic and economic statecraft efforts and counter China’s aggressions. It should increase “grey zone” activities such as promotion of freedom, ease access to capital, and improve trade relations.
