China's Belt and Road Initiative

No stranger to political controversy, the International Monetary Fund may soon find itself embroiled in one that pits China’s interests against those of the United States. Beijing’s hugely ambitious international development project, known as the Belt and Road Initiative, is raising fears of debt crises in the developing world, and the IMF may be called in to clean up the mess. The U.S. is poised to oppose any IMF deal providing funds that would ultimately go to pay off Belt and Road-related tabs. How the IMF handles this situation could give clues about how the institution will deal with competing [...]

It is revealing of current American political obsessions that a recent book about the Marshall Plan’s relationship to the Cold War might be seen first and foremost as having lessons for today’s troubled ties between the United States and Russia. In that book, Benn Steil, a senior fellow at the Council on Foreign Relations, argues that with the Marshall Plan’s launch in 1947, the U.S. and the Soviet Union “became irrevocably committed to securing their respective spheres of influence.” Yet despite widespread concern about Russia, the most consequential great power struggle today is the one between the U.S. and China. [...]

Last month, Japanese Foreign Minister Taro Kono traveled to Sri Lanka, where he announced Tokyo’s plans to invest in several infrastructure projects, including a natural gas terminal. It was the first visit to Sri Lanka by a Japanese foreign minister in 15 years. Following similar Japanese investment projects in India and elsewhere in the region, the Sri Lanka trip appeared to be the latest sign of a growing strategy aimed at countering China’s massive Belt and Road Initiative, also known as One Belt, One Road. In an email interview, Shihoko Goto, the senior Northeast Asia associate at the Wilson Center’s [...]