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LAND HUNGER OF CHINA
China has been trying to grab the land in its neighbourhood through its Coercive Diplomacy against its SMALL neighbouring countries.
China grabs the offshore lands and ports of developing countries through DEBT TRAP diplomacy.
cc - @Chellaney
LAND HUNGER OF CHINA
China has been trying to grab the land in its neighbourhood through its Coercive Diplomacy against its SMALL neighbouring countries.
China grabs the offshore lands and ports of developing countries through DEBT TRAP diplomacy.
cc - @Chellaney
Modern Colonialism.
China is gradually swallowing the country after country.
After Sri Lanka's Hambamtota port, Nepal's Entire Politics, Pakistan's 19+ Billion dollars debt trap,
Loans to Kyrgyzstan, Maldives, Tajikistan, Djibouti & Mongolia.
Now #Laos falls to China’s Debt Trap
China is gradually swallowing the country after country.
After Sri Lanka's Hambamtota port, Nepal's Entire Politics, Pakistan's 19+ Billion dollars debt trap,
Loans to Kyrgyzstan, Maldives, Tajikistan, Djibouti & Mongolia.
Now #Laos falls to China’s Debt Trap
China never provides loan for those projects which will be successful in future,
they ONLY provide loan to those projects which will be a big failure in future.
So that China can trap these countries & due to which gave some or the other ACCESS TO THEIR ASSETS & STAKE to china
they ONLY provide loan to those projects which will be a big failure in future.
So that China can trap these countries & due to which gave some or the other ACCESS TO THEIR ASSETS & STAKE to china
1. Recently China's debt-trap diplomacy claims another victim,small landlocked nation of Laos
Laos's ambition was to become "battery of Southeast Asia" by exporting power.
Instead, China is taking power by gaining majority control over Laos's electric grid https://www.bangkokpost.com/business/1980027/chinese-firm-to-run-lao-electric-grid
Laos's ambition was to become "battery of Southeast Asia" by exporting power.
Instead, China is taking power by gaining majority control over Laos's electric grid https://www.bangkokpost.com/business/1980027/chinese-firm-to-run-lao-electric-grid
2. China had given loan to Sri Lanka for building airport& Hambantota port
Sri Lankan government failed to recover loan amount & on that basis gave access of Hambantota port to China for 99 YEARS ON LEASE.
Revenue part will be taken care by China. https://www.nytimes.com/2018/06/25/world/asia/china-sri-lanka-port.html
Sri Lankan government failed to recover loan amount & on that basis gave access of Hambantota port to China for 99 YEARS ON LEASE.
Revenue part will be taken care by China. https://www.nytimes.com/2018/06/25/world/asia/china-sri-lanka-port.html
3. Pakistan is at high risk, and currently projects an estimated $62 billion in additional debt. China reportedly finances about 80 percent of that.
In Pakistan - China got access to GWADAR PORT due to FAILURE OF PAKISTANI government to REPAY loan amount. https://thediplomat.com/2018/10/gwadar-emerging-port-city-or-chinese-colony/
In Pakistan - China got access to GWADAR PORT due to FAILURE OF PAKISTANI government to REPAY loan amount. https://thediplomat.com/2018/10/gwadar-emerging-port-city-or-chinese-colony/
4. Zambia is a textbook case of the Chinese debt trap that affects 15 African countries, including Djibouti and the Democratic Republic of the Congo.
Zambia's government gave its stake to China in the PSU - Zesko Copper when it FELL INTO DEBT TRAP. https://www.theguardian.com/global-development/2019/dec/11/china-steps-in-as-zambia-runs-out-of-loan-options
Zambia's government gave its stake to China in the PSU - Zesko Copper when it FELL INTO DEBT TRAP. https://www.theguardian.com/global-development/2019/dec/11/china-steps-in-as-zambia-runs-out-of-loan-options
5. According to IMF assessment, it stresses an extremely risky nature of Djibouti’s borrowing program.
The public external debt increased from 50 to 85% of the GDP.
The debt consists of government-guaranteed public enterprise debt owed to China Exim Bank. https://www.washingtonpost.com/world/africa/in-strategic-djibouti-a-microcosm-of-chinas-growing-foothold-in-africa/2019/12/29/a6e664ea-beab-11e9-a8b0-7ed8a0d5dc5d_story.html
The public external debt increased from 50 to 85% of the GDP.
The debt consists of government-guaranteed public enterprise debt owed to China Exim Bank. https://www.washingtonpost.com/world/africa/in-strategic-djibouti-a-microcosm-of-chinas-growing-foothold-in-africa/2019/12/29/a6e664ea-beab-11e9-a8b0-7ed8a0d5dc5d_story.html
6. Kyrgyzstan - A relatively poor country, China Exim Bank has been the largest single creditor, with reported loans totalling more than US$1.5 billion, or roughly 40 percent of its total external debt. https://thediplomat.com/2017/12/can-central-asias-poorest-states-pay-back-their-debts-to-china/
7. The Maldives is considered by the IMF and the World Bank to be at a high risk of debt distress.
Maldives owes Beijing about US$3.5 billion in loans, and China has grabbed more land than the East India Company had done. https://thediplomat.com/2019/12/chinese-envoy-in-maldives-pushes-back-on-debt-trap-free-trade-agreement-concerns/
Maldives owes Beijing about US$3.5 billion in loans, and China has grabbed more land than the East India Company had done. https://thediplomat.com/2019/12/chinese-envoy-in-maldives-pushes-back-on-debt-trap-free-trade-agreement-concerns/
8. Tajikistan -Considered to be one of the poorest countries in Asia, Tajikistan is assessed by World Bank & IMF to be at ‘high risk’ of debt distress.
Debt to China currently accounts for more than 80% of the total increase in Tajikistan’s external debt. https://eurasiantimes.com/china-tajikistan-relations-deepen-has-beijing-debt-trapped-another-country/
Debt to China currently accounts for more than 80% of the total increase in Tajikistan’s external debt. https://eurasiantimes.com/china-tajikistan-relations-deepen-has-beijing-debt-trapped-another-country/
9. Venezuala - China has pledged to invest US$5 billion in Venezuela, a once-rich country, which is currently in the throes of an economic crisis.
This country has not been able to make interest payments on US$50 billion in international bonds. https://foreignpolicy.com/2017/06/06/venezuelas-road-to-disaster-is-littered-with-chinese-cash/
This country has not been able to make interest payments on US$50 billion in international bonds. https://foreignpolicy.com/2017/06/06/venezuelas-road-to-disaster-is-littered-with-chinese-cash/
Now that, this country will increase oil exports to China by a million barrels a day.
China’s dysfunctional relationship with Venezuela makes it clear that it counters to the dominant narrative about the Chinese debt ensnaring several other countries.
China’s dysfunctional relationship with Venezuela makes it clear that it counters to the dominant narrative about the Chinese debt ensnaring several other countries.
All these show that small and developing countries get trapped by accepting China’s offer to construct infrastructure, which China later sets the terms of future engagement.
For several poor countries, the collateral large enough at hand is their land.
There are ripples of concern about Chinese loans which later overburden borrowers and end up in undermining local sovereignty through settlements.
There are ripples of concern about Chinese loans which later overburden borrowers and end up in undermining local sovereignty through settlements.
Belt and Road initiative would also become a reason of DEBT TRAP DIPLOMACY IN FUTURE.
As well as China dominancy on SOUTH CHINA SEA where it is exploring natural resources like crude oil amd minerals so that it will not depend on other countries and AVOID SANCTIONS BY WEST.
As well as China dominancy on SOUTH CHINA SEA where it is exploring natural resources like crude oil amd minerals so that it will not depend on other countries and AVOID SANCTIONS BY WEST.
WHY COUNTRIES TAKE LOANS FROM CHINA?
IMF, WORLD BANK and other institutions give loans with high rate of interest as compare to China’s rate of interest.
Plus these bodies have quite TOUGH CRITERIA for loans.
Criteria of loans given by China is easy and can easily get loans.
IMF, WORLD BANK and other institutions give loans with high rate of interest as compare to China’s rate of interest.
Plus these bodies have quite TOUGH CRITERIA for loans.
Criteria of loans given by China is easy and can easily get loans.
China never provides loan for those projects which will be successful in future,
they ONLY provide loan to those projects which will be a big failure in future.
So that China can trap these countries & due to which gave some or the other ACCESS TO THEIR ASSETS & STAKE to china
they ONLY provide loan to those projects which will be a big failure in future.
So that China can trap these countries & due to which gave some or the other ACCESS TO THEIR ASSETS & STAKE to china
