'Debt-trap diplomacy' a fabricated myth
6 months, 1 week ago

'Debt-trap diplomacy' a fabricated myth

China Daily  

Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. Editor's note: A recent editorial article on Guyana Times analyzed how the "Chinese debt-trap diplomacy" myth was created and twisted as the United States targeting at China. This is a term to describe an international financial relationship where a creditor country or institution extends debt to a borrowing nation partially or solely to increase the lender's political leverage. The term was introduced less than a decade ago by a global strategist in discussing China's loans to several African countries, and was quickly picked up by the US. Recent research shows that the "Chinese debt-trap" accusation is a myth, since there are no winners in such a strategy, as the debtor, trapped with unsustainable debt, leaves its creditor out of pocket.

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History of this topic

On the rails
3 months, 3 weeks ago

On the rails

China Daily  

Ethnic groups celebrate the departure of the second international passenger train in Xishuangbanna, Yunnan province, on April 13. Provided to CHINA DAILY Piti Srisangnam from Thailand's Chulalongkorn University told media that the China-Laos Railway is far more profitable than to be categorized as a "debt trap", given that freight volume — the railway's main revenue source — in 2023 doubled …

'Debt-trap diplomacy' a fabricated myth
6 months, 1 week ago

'Debt-trap diplomacy' a fabricated myth

China Daily  

Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. Editor's note: A recent editorial article on Guyana Times analyzed how the "Chinese debt-trap diplomacy" myth was created and twisted as the United States targeting at China. This is a term to describe an international financial relationship where a creditor country or institution extends debt …

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects
1 year, 1 month ago

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects

Firstpost  

China has pumped billions of dollars in grants and loans into developing countries over the last ten years. Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. China has granted about $1 trillion in loans to …

BRI a tool for development, not debt traps
1 year, 5 months ago

BRI a tool for development, not debt traps

China Daily  

The claims that the Belt and Road Initiative has been used as a tool to create debt traps for receptive countries are completely wrong, said Jin Keyu, associate professor of economics at the London School of Economics and Political Science. "The majority of debt in emerging markets is owed to Western institutions, multilateral institutions and financial institutions, including private creditors …

China is pushing poor nations like Pakistan into its debt trap, one at a time
1 year, 7 months ago

China is pushing poor nations like Pakistan into its debt trap, one at a time

Op India  

The People’s Republic of China has been pushing poor countries to the brink of economic ruin through its well-thought-out ‘debt trap’ and its unforgiving nature when it comes to the recovery of loans. An AP analysis found that countries heavily indebted to China are draining foreign currency reserves used to pay interest on loans, leaving some with just months before …

China left out of Sri Lanka debt talks amid angst over delays
1 year, 8 months ago

China left out of Sri Lanka debt talks amid angst over delays

Live Mint  

Sri Lanka and major creditors are set to formally launch talks to restructure the nation’s debt without China — its biggest bilateral lender — a signal of growing frustration with Beijing’s approach to debt woes in the developing world. Hanging over those wider talks have been concerns about China’s role in negotiations involving countries like Sri Lanka and Zambia, which …

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations
1 year, 8 months ago

China denies ’debt trap diplomacy’ amid $59.87 loan to African nations

Live Mint  

Chinese foreign ministry spokesperson Wang Wenbin clarified that China is not responsible for African countries' "debt trap," but rather a supportive partner in helping them and other developing nations break free from the "poverty trap," as reported by CCTV. As per the report, Wenbin stressed that those accusations have no factual basis and, "China attaches great importance to Africa's debt …

Irresponsible & unreasonable: China slams US over its debt trap accusation
1 year, 8 months ago

Irresponsible & unreasonable: China slams US over its debt trap accusation

India Today  

China on Thursday called remarks by US Treasury Secretary Janet Yellen "irresponsible" and "unreasonable" after the former said Beijing's lending activities leave developing countries "trapped in debt." "I am very, very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don't promote economic development," Yellen said …

Nepal’s economic ties with China raise concerns about ‘debt trap diplomacy’
1 year, 8 months ago

Nepal’s economic ties with China raise concerns about ‘debt trap diplomacy’

Live Mint  

China's ambition to establish its dominance in the South Asian region has been a long-standing strategy. As per a report by the Nepalese daily Pardafas, China, which is rooted in the "Middle Kingdom" complex, is using tactics to achieve its objectives by trapping Nepal in a debt cycle. The recently inaugurated Pokhara International Airport was funded by a loan of …

West's debt trap allegations don't stand up to scrutiny
1 year, 10 months ago

West's debt trap allegations don't stand up to scrutiny

China Daily  

Earlier this month, during his first official visit abroad since his appointment as China's foreign minister, Qin Gang vehemently denied allegations that his country's aid to African nations is a "debt trap". According to the World Bank's international debt statistics, by the end of 2020, the sovereign debt of 82 low- and middle-income countries held by commercial and multilateral lenders …

The inevitable geopolitical lens in Sri Lanka
1 year, 11 months ago

The inevitable geopolitical lens in Sri Lanka

The Hindu  

If it’s a conversation on Sri Lanka’s economy, talking points on China and India are inevitable. For Sri Lanka watchers, especially those based in the West or India, that’s a “Chinese debt trap”. The largest chunk of Sri Lanka’s foreign debt is owed to largely Western, private creditors holding International Sovereign Bonds, as a recent statement by global scholars, too, …

Unmasked: The face of the real debt trap maker
2 years, 3 months ago

Unmasked: The face of the real debt trap maker

China Daily  

An aerial view of the Padma Multipurpose Bridge and railway project in Louhajang, about 40 kilometers from Dhaka, capital of Bangladesh, in June. China is often accused by the US and others of exploitative behavior in developing countries but the facts point to the true source of the problem: the West The United States and other Western countries often accuse …

Unmasked: The face of the real debt trap maker
2 years, 3 months ago

Unmasked: The face of the real debt trap maker

China Daily  

An aerial view of the Padma Multipurpose Bridge and railway project in Louhajang, about 40 kilometers from Dhaka, capital of Bangladesh, in June. China is often accused by the US and others of exploitative behavior in developing countries but the facts point to the true source of the problem: the West The United States and other Western countries often accuse …

Debt trap smears smack of imperialist intent to keep poorer countries poor: China Daily editorial
2 years, 4 months ago

Debt trap smears smack of imperialist intent to keep poorer countries poor: China Daily editorial

China Daily  

An American flag flies outside of the US Capitol dome in Washington, US, Jan 15, 2020. They claim that China is forcing poorer countries into debt traps, by convincing them into taking on loans for infrastructure projects that they can't afford and that offer few benefits, so that Beijing eventually takes control of these assets when the countries can't repay …

Facts derail Africa 'debt trap' smears
2 years, 5 months ago

Facts derail Africa 'debt trap' smears

China Daily  

Photo taken on Dec 7, 2021, shows a section of the 27.1-km Nairobi Expressway which is being constructed by the China Road and Bridge Corporation in Nairobi, Kenya. Talk of a so-called Chinese "debt trap" burdening African countries is pure disinformation and, contrary to what those behind the smears say, China has always been dedicated to easing Africa's debt pressures, …

‘Entrapment’ or ‘ineptitude’? Sri Lanka debt crisis reignites debate on Chinese lending
2 years, 7 months ago

‘Entrapment’ or ‘ineptitude’? Sri Lanka debt crisis reignites debate on Chinese lending

The Hindu  

With the on-going debt crisis in Sri Lanka turning the spotlight on China’s lending practices, Beijing has been pushing back against allegations of what has been called “debt trap diplomacy”. Research by China scholars Deborah Brautigam and Meg Rithmire showed “Chinese banks are willing to restructure the terms of existing loans and have never actually seized an asset from any …

Sri Lanka and beyond, a Chinese hand that feeds crisis
2 years, 8 months ago

Sri Lanka and beyond, a Chinese hand that feeds crisis

India Today  

If you are in Sri Lanka, you are probably protesting or willing to join the protesters. Though China’s share in Sri Lanka’s debt officially stands at 10 per cent, the same as Japan, it is not an accurate picture of the situation. Simply put, to service off-the-book debts taken from the Chinese government companies, Laos sold a major asset to …

Laos opens picturesque railway built on a mountain of Chinese debt
3 years ago

Laos opens picturesque railway built on a mountain of Chinese debt

Firstpost  

The line will connect the capital Vientiane with the southern Chinese city of Kunming, and there are grand plans for a high-speed rail network running to Singapore through Thailand and Malaysia Laos opened a new $6 billion rail link with China to much fanfare this month, but analysts warn the party could be short-lived as the government grapples with a …

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report
3 years, 2 months ago

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report

Op India  

China has long been known for using its financial clout to further “debt-trap diplomacy”, a policy that encompasses saddling borrowing nations with excessive credit with the intention of extracting economic or political concessions from the debtor country when it finds it increasingly difficult to meet its debt repayment obligations. Now, a report published by AidData says China’s Belt and Road …

China demands secrecy in its loans to developing countries: Study
3 years, 8 months ago

China demands secrecy in its loans to developing countries: Study

Al Jazeera  

US researchers say Chinese lenders require borrowers to prioritise repayments to Chinese banks ahead of others. The terms of China’s loan deals with developing countries are unusually secretive and require borrowers to prioritise repayment of Chinese state-owned banks ahead of other creditors, a study of a cache of such contracts showed. The researchers at AidData, the Washington-based Center for Global …

Debt as Chinese weapon?
4 years, 4 months ago

Debt as Chinese weapon?

The Hindu  

Declared by the United States and its allies as the leading threat to global stability, China has been accused of transgressions varying from stealing hi-tech secrets, spying and interfering in domestic politics of other countries to spreading viruses. On the other hand, lending to overseas investment and construction projects that can be included under the BRI, is estimated at around …

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