- to implement measures to prevent foreign infiltration. In July 2023, the PRC adopted an amended counter-espionage with a broader scope. The amended law expanded the definition of espionage from covering state secrets and intelligence to any documents, data, materials, or items related to national security, without defining these terms.
CHINA’S BELT AND ROAD INITIATIVE (BRI)
Key Takeaways
- The PRC uses BRI to support its strategy of national rejuvenation by seeking to expand global transportation and trade linkages to support its development and deepen its economic integration with nations along its periphery and beyond.
- In 2022, BRI projects saw mixed economic outcomes, experiencing both growth and decline. However, overall spending on BRI projects remained consistent with the previous year and Beijing continued to prioritize public health, digital infrastructure, and green energy opportunities.
- Overseas development and security interests under BRI will drive the PRC towards expanding its overseas security relationships and presence to protect those interests.
First announced in 2013, the PRC’s BRI initiative is the signature foreign and economic policy advanced by Xi that rebranded and further expanded China’s global outreach. Beijing uses BRI to support its strategy of national rejuvenation by seeking to expand global transportation and trade links to support its development and deepen its economic integration with nations along its periphery and beyond. The PRC implements BRI by financing, constructing, and developing transportation infrastructure, natural gas pipelines, hydropower projects, digital connectivity, and technology and industrial parks worldwide. As of 2022, at least 147 countries had signed BRI cooperation documents, up from 146 in 2021, 138 in 2020, and 125 in 2019.
In support of its national strategy, Beijing leverages BRI to strengthen its territorial integrity, energy security, and international influence. The PRC aims to improve stability and diminish threats, for example, by investing in projects along its western and southern periphery. Similarly, through BRI projects associated with pipelines and port construction in Pakistan, it seeks to become less reliant on transporting energy resources through strategic choke points, such as the Strait of Malacca. It also attempts to exploit the relationships it builds through BRI to pursue additional economic cooperation with participating countries.
Since 2022, two distinct trends have developed relative to BRI. First, the share of PRC financial investment relative to construction increased to its highest levels, with investments almost doubling. Beijing experienced strong growth in their East Asian and the Middle Eastern investments but a decline in their Sub-Saharan Africa efforts. Conversely, spiraling construction costs over the past three years have resulted in $78 billion in bad loans which needed to be written off or renegotiated in 2022. Second, Beijing began to replace previous BRI rhetoric with language
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
