Kathmandu: China's Belt and Road Initiative (BRI) is facing significant challenges as several countries are reluctant to renew their deals with China due to the lack of outcomes and increasing tensions. The German Chancellor has also expressed frustration with the BRI and warned of a looming financial crisis. The sanctions against Russia and Western backlash against Beijing have further accelerated the demise of the initiative.

Moreover, Chinese companies are finding it challenging to find willing partners in host countries, resulting in a decline in the number of new projects signed under the BRI. Several BRI partner countries have expressed concerns about corruption, debt, construction flaws, and unsustainable projects.

According to a 2021 study, many countries have suspended or cancelled major projects worth billions of dollars, beset by corruption, labour abuses, environmental degradation, and public opposition. The negative sentiments against the BRI continue to build up against China as some projects fail to deliver their expected benefits, and debt piles up. For instance, Sri Lanka now faces debt distress due to Chinese loans.

The economic slowdown in China, along with a challenging global geostrategic environment, would adversely impact the BRI. Therefore, the Chinese leadership is attempting a course correction, and references to the BRI in Chinese leaders' speeches have become less frequent. Xi Jinping now speaks of it in terms of reforms, labeling the BRI as "increasingly complex" and in need of stronger risk controls and cooperation.

In conclusion, the BRI is losing its lustre amid a lack of outcomes, concerns of corruption and debt, and unsustainable projects. The increasing negativity and backlash against the BRI, coupled with China's domestic challenges, pose significant challenges for the initiative's future.