China's Belt and Road Finds Southeast Asia a Tough Slog ; ISEAS Perspective ; Issue: 2020 No. 95

Abstract

China has faced enormous problems getting projects off the ground in the countries that need the investment most. Negotiating the interest rate that a country will pay for a loan from a Chinese bank and/or how large a local government or company will take on is often the subject of years of negotiations. Forced or poorly compensated relocation of farmers to make way for a project has prompted endless protests and complaints and has driven many into poverty. The lack of concern by Chinese contractors about environmental damage caused by a project has resulted in governments abandoning some projects. Land acquisition particularly in more democratic countries has prompted some farmers to refuse to move. Corruption and hefty kickbacks have dented Beijing's image and caused delays.