China’s Belt and Road 2.0: Expansion, Debt, and Geopolitical Leverage

By [Yash Rajpoot], International Affairs Correspondent

When China launched its ambitious Belt and Road Initiative (BRI) in 2013, it was heralded as a game-changer for global infrastructure. A decade later, the BRI is evolving into a more calculated and strategic tool of economic diplomacy — often referred to as “Belt and Road 2.0.” While still centered on infrastructure development, this new version raises fresh questions about sustainability, debt diplomacy, and the reshaping of global power.

A Shift in Strategy

Unlike its earlier phase, which focused heavily on mega-projects like ports, railways, and highways — many of which faced delays or poor financial returns — Belt and Road 2.0 is prioritizing quality over quantity. Projects are becoming more digital, green, and tailored to local economies. From the Digital Silk Road to renewable energy installations, China is repositioning itself not just as the world's infrastructure builder but also as a global tech and energy partner.

Economic Ties or Economic Traps?

Despite its rebranding, the BRI continues to draw criticism. Countries like Sri Lanka and Pakistan have struggled to repay Chinese loans, raising fears of "debt-trap diplomacy." In 2017, Sri Lanka handed over its Hambantota Port to China on a 99-year lease after failing to repay its debt — a cautionary tale that haunts many developing nations still considering BRI partnerships.

China insists that the initiative promotes "win-win cooperation." But the fine print of many of its agreements often lacks transparency, with vague clauses and high-interest terms. As a result, countries in Africa, Asia, and Latin America are becoming more cautious, scrutinizing BRI offers more closely than before.

The Global Response

Western nations haven’t been idle. In response, the U.S., EU, and Japan have launched competing initiatives like the G7’s "Build Back Better World" and the EU’s "Global Gateway" — both aimed at offering transparent, sustainable infrastructure financing. While these efforts are still in their infancy compared to BRI, they represent a growing recognition that China’s economic influence cannot go unchecked.

BRI and Geopolitical Leverage

Beyond economics, Belt and Road is also a geopolitical chess piece. Chinese-built ports in places like Djibouti, Myanmar, and Gwadar (Pakistan) have dual-use potential — for both commercial and military purposes. These developments are viewed with concern by countries like India, the U.S., and Australia, which fear encirclement and loss of strategic autonomy.

Looking Ahead

As the world becomes increasingly multipolar, the evolution of China’s Belt and Road will play a central role in shaping the balance of power. Belt and Road 2.0 is not just a facelift — it’s a strategic recalibration. For participating countries, the path forward requires a mix of opportunity, caution, and rigorous negotiation.