3 But they are building up debts from BRI projects

But the theory is valid only if the infrastructure projects are in need, and money spent on project financing are used efficiently. We are concerned that money borrowed to build some infrastructure projects would yield low returns that limits BRI economies' repayment ability.

It is well known that an element of funding for BRI investment projects has come from China and funds participating in China. But it is less well known that most of the lending facilities have come from the China Development Bank and a group of Chinese banks.

The first well-known source of funds for the BRI is the Silk Road Fund. The Chinese government will make an estimated $40 billion of equity investments through its Silk Road Fund and is eager to earn a return on its investments. As of August 2017, the committed investment in the Silk Road Fund was $680 million, with equity investment accounting for nearly 80%.

The Asian Infrastructure Investment Bank (AIIB) will also be a major investor. While it was originally proposed by China, the bank has 56 member states and is renowned for its robust corporate governance. The creditworthiness of its investments will be thoroughly scrutinised. Such tight credit screening explains why the AIIB has only announced financing amounting to $3.7 billion for the BRI thus far.

Apart from the Silk Road Fund and AIIB, the China Development Bank had lent out $110 billion in loans to Belt and Road projects as of January 2018. On top of that, the China Development Bank and China Export Import Bank announced separate BRI funds, worth $36.2 billion and 18.8 billion, respectively, at the 2017 Belt and Road Summit.