The Red Sea Region and the Belt and Road Initiative of China

Abstract

This thesis looks at the sequential ripple effect of China’s Belt and Road Initiative (BRI) on Red Sea countries, emphasizing Djibouti, Egypt, and Sudan. In line with the above research questions, the study uses qualitative and quantitative data to establish the impact of the BRI on the economy, geopolitics, and socio-political systems. The study incorporates the big picture of the Red Sea's strategic value; the Red Sea is a critical shipping lane between Europe, Asia, and Africa that is vital for commerce and energy. The study places the BRI in this context, looking at how Chinese investments in ports, railways, and free-trade zones are intended to increase interconnectivity and boost economic activity. The study reveals a strong positive impact on GDP growth rates, the volume of trade, and FDI inflow in the analyzed countries. However, these benefits are accompanied by severe problems, including high debt and economic dependence on China. This thesis explores the political consequences of the BRI and how, through its strategic investment and military foothold in the region, it could shift the power dynamics, threaten Western dominance, and stir tensions about security in the region. First, as indicated in the analysis of crucial BRI investment areas, there is an analytical focus on the economic-development aspect of the BRI. In contrast, there is silence about a second more political aspect of BRI. This is because the BRI represents both an economic-development initiative and a geopolitical power play, indicating China’s desire to alter the global trade map and consolidate its position. This thesis analyzes three countries: Djibouti, Egypt, and Sudan. These case studies of the BRI show both the positive outcomes and the negative outcomes for the nations. These case studies underscore the efficiency of debts, the disclosing of policies, and the cooperation within the region to avoid issues detrimental to the achievement of the goal of sustainable development. The last chapter provides policy implications for rebuilding regional stability and suggestions for future work focusing on using the BRI’s economic opportunities and mitigating the BRI’s geopolitics and socio-economic concerns. The findings of this thesis help to enhance knowledge about the BRI’s impact on the Red Sea region and provide valuable recommendations for various actors.