PRIME Minister Dr Mahathir Mohamad’s five-day visit to China attracted very intense scrutiny from local observers, our immediate neighbours, and worldwide, including big powers. Depending on who and where these observers were from, comments had been mixed.

Local opposition leaders were quick to denounce the trip as a failure with regards to the primary purpose of the trip. The Straits Times was also quick to comment with a tinge of sarcasm and the constant reminder of having to pay huge compensation for rescinded contracts with Chinese parties. This is understandable, as Singapore still harbours much displeasure on the unilateral announcement to cancel the high-speed railway (HSR) project and the frequent reminder of the water issue.

Comments from western media had been lengthy and fair, but the bulk of the comments emphasised China’s hegemony using its vast economic and financial power, and warned of countries succumbing to a debt trap. The Global Times, the unofficial mouthpiece of China’s foreign policy, made neutral comments – so unlike its tantrum-like attack when the scrapping of the HSR project was first announced.

More than five years ago, Beijing exuded nostalgic appeal with the idea of reviving the ancient Silk Road cutting across Central Asia to Europe, and the maritime passage across South East Asia, the Middle East, and Africa. It became known as President Xi Jinping’s signature Belt and Road Initiative (BRI) strategy.

The idea was hatched at the peak of China’s two decades of continuous economic growth, watched in awe by the West. Almost all countries wanted to ride the bandwagon of China’s economic success. The United States’ economic woes of the last decade starting in 2008 allowed China to exert its economic and financial prowess without competition.

Early euphoria among several nations participating in the BRI soon turned into a dilemma. Cynics questioned if the projects were economically and financially viable, and if the countries involved could service the loans. This prompted the IMF to warn a number of countries of excessive debt, where the debt to GDP became more burdensome. Countries at risk include the Maldives, Kyrgyz Republic, Laos, Tajikistan, and Pakistan.

In 2011, Tajikistan had to give up thousands of square kilometres of territory in exchange for a debt write-off. Last year, Sri Lanka had to hand over the Hambantota port on a 99-year lease for failure to settle debt.

Aware of what happened to nations overly ambitious of developing infrastructure projects they could barely afford, Dr Mahathir had gone to China set to explain why we could not afford to repay the loans and the non-viability of the projects.

Right in the heart of the middle kingdom, he told their leaders, and all leaders of the world, that he supported free trade. But “free trade should also be fair trade”. Even more bluntly, he emphasised, “we do not want a situation where there is a new version of colonialism happening because poor countries are unable to compete with a rich nation”.

This is the prime minister who in his first tenure dared to tell off leaders of the first world in the early 1990’s and decided on the “Look East Policy”. Desperate for the need of foreign aid and also to remain in the list of preferred trading nations, other third world leaders chose to remain silent, but quietly cheered our great leader. This same prime minister, now in his second tenure, again told world leaders what they needed to be told. He once was, and now still is, the toast of other world leaders.

China realises it has to maintain goodwill in the BRI participating countries. Other countries might grumble about unfair deals. But none would speak up the way Dr Mahathir did.

Hence, agreeing to Dr Mahathir canceling the projects, or at least deferring them to a later date, is expected. Any hard demand for full compensation is foolish as the state-linked corporations are incriminated in connivance of corruption, money laundering, contravening the laws in the country, and contravening the norms of good business ethics.

Playing hardball with Malaysia will create a diplomatic vacuum that the US is happy to fill. In fact, it is more China, less Malaysia, in a quagmire eagerly watched by the US.

This saga of Malaysia’s involvement in the Silk Road of the 21st century has unwittingly put our country in the middle of a tripartite romance, perhaps a Romance of the Three Kingdoms of a modern kind. – August 29, 2018.

* Wong Ang Peng is a researcher with an interest in economics, politics, and health issues. He has a burning desire to do anything within the means to help the new government in rebuilding our nation and promote national harmony.  Wong is a member of the National Patriots Association.

* Captain Dr Wong Ang Peng is a researcher with an interest in economics, politics, and health issues. He has a burning desire to do anything within his means to promote national harmony. Captain Wong is also a member of the National Patriots Association.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.