Corruption Flows Along China’s Belt and Road
January 18, 2019
A version of this article was originally published by Nikkei Asian Review on January 18, 2019
China's Belt and Road Initiative (BRI) sprouted another sinkhole this month when the Wall Street Journal reported that Chinese officials agreed to help bail out Malaysia's state development fund 1Malaysia Berhad, known as 1MDB, by inflating the cost of infrastructure projects.
The story is still unfolding: Malaysian officials have announced a probe. Beijing has denied the report. Former Malaysian prime minister Najib Razak, who has been charged with corruption over 1MDB, denies the allegations against him.
What can no longer be denied is that the BRI is opaque by design. By limiting outside scrutiny, the initiative's lack of transparency gives Chinese companies an edge in risky markets, and it allows Beijing to use large projects to exercise political influence.
