The Indonesian consortium that controls 60% of the route inaugurated two years ago recorded losses of over 0 million in 2024. This year, losses are expected to increase further. The project is part of the Belt and Road Initiative, but from the outset it appeared to be economically unsustainable. It is not the only case among the major railway projects in Southeast Asia. Nevertheless, Prabowo is intensifying his embrace of Beijing.
The two giants of the Asian continent have always been close, but they have never communicated as intensely and amicably as they have in recent times. China's position continues to strengthen despite all the mistrust surrounding Russian projects. The scenario of a ‘reverse colonisation’ compared to the times when Moscow was the ‘big brother’.
After focusing on the opportunities opened up by the US withdrawal, China now has to contend with the new winds of war between Kabul and Islamabad, which are also affecting the thousands of Chinese working on one of the most important routes of the Belt and Road Initiative. Meanwhile, the Taliban are recruiting contingents from the Uighur diaspora.
In recent years, Beijing has moved from mass production of generic drugs to investing in advanced biomedical research. Thanks to a growth model very similar to that adopted for electric cars, it now controls 80% of global active ingredients. The Fentanyl case has shown the importance of this card, described as a “nuclear option” in trade wars. But China still needs the West to hold its own in this market.
A voice from China comments on three attention-grabbing cases involving fellow Chinese abroad caught up in extremely serious transnational crimes related to fraud, drugs, and human trafficking. “In our textbooks, the Opium War of two centuries ago is presented as a national tragedy,” so why when “we are rich and strong,” are we “installing slot machines in the poorest areas of Africa”?
Nepal's anti-corruption commission has indicted 55 former politicians and officials and the state-owned China CAMC Engineering of inflating the costs of Pokhara International Airport, built with a Chinese loan as part of Beijing’s Belt and Road Initiative, but currently without regular international flights. The investigation is testing the new caretaker government, which does not want to jeopardise ties with Beijing.