Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Fearing debt trap, Pakistan rethinks Chinese 'Silk Road' projects
Reuters ^ | 30 Sep 2018 | Drazen Jorgic

Posted on 09/30/2018 1:34:18 PM PDT by BeauBo

The cooling of enthusiasm for China’s investments mirrors the unease of incoming governments in Sri Lanka, Malaysia and Maldives, where new administrations have come to power wary of Chinese deals struck by their predecessors. Pakistan’s new government had wanted to review all BRI contracts. Officials say there are concerns the deals were badly negotiated, too expensive or overly favored China.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; communism; debttrap; onebeltoneroad; pakistan; rop; silkroad
President Trump has changed the world's perception of communist China. It is no longer viewed as a smart place to invest. Chinese infrastructure projects are no longer seen as smart shopping for low prices, but as the rip-offs that they are (and as evidence of the corruption of the politicians involved).

2019 will be a sharp adjustment for the communist Chinese economy.

1 posted on 09/30/2018 1:34:18 PM PDT by BeauBo
[ Post Reply | Private Reply | View Replies]

To: BeauBo

[The cooling of enthusiasm for China’s investments mirrors the unease of incoming governments in Sri Lanka, Malaysia and Maldives, where new administrations have come to power wary of Chinese deals struck by their predecessors.]


Of course they’re wary. Their predecessors got the bribes, but the new governments got the bills. A lot of these projects were essentially huge bribes dressed up as viable projects. The Chinese will discover, as others have before them, that loan documents to these countries are not worth the paper they’re printed on. These debtors will default or outright renege.


2 posted on 09/30/2018 2:00:11 PM PDT by Zhang Fei (They can have my pitbull when they pry his cold dead jaws off my ass.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BeauBo
I saw a show on China's re-establishing the "Silk Road".

Two reasons were brought up.

1. Trump, Japan, and Taiwan cause "uncertainties" for China's shipping exports,

and

2. Shipping to Europe takes on the order of two months. A land route would cut that down.

3 posted on 09/30/2018 2:03:01 PM PDT by Calvin Locke
[ Post Reply | Private Reply | To 1 | View Replies]

To: BeauBo

Pakistan doesn’t have too many alternatives for saviors outside of China - the US is finally getting tired of bankrolling this failed state, and Pakistan’s only fallback is China. They’ll play the game by China’s rules, or they will disintegrate.


4 posted on 09/30/2018 2:03:21 PM PDT by AnotherUnixGeek
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnotherUnixGeek

Yes.


5 posted on 09/30/2018 2:13:41 PM PDT by caww
[ Post Reply | Private Reply | To 4 | View Replies]

To: Calvin Locke

There are already many ways to drive from China to Europe, and several rail routes. Google maps can show them.

What China’s One Road, One Belt is really about, is lining the pockets of Chinese communist politicians.

Just like corrupt politicians here (and everywhere) love big infrastructure projects, because of the kickbacks they can skim, and the favors they can dole out, so do the Princelings of the Communist Party of China.

They have an unlimited appetite for such boondoggles. Everybody and their cousin wants in on one. Its a get rich quick scheme for political insiders - which is how they mainly occupy themselves, when not oppressing the population or politicking within the Party.


6 posted on 09/30/2018 2:33:37 PM PDT by BeauBo
[ Post Reply | Private Reply | To 3 | View Replies]

To: AnotherUnixGeek

Pakistan has an alternative to becoming a Chinese vassal - stop being a major terrorism sponsor, and rejoin the community of decent Nations.


7 posted on 09/30/2018 2:35:56 PM PDT by BeauBo
[ Post Reply | Private Reply | To 4 | View Replies]

To: Calvin Locke

I saw a similar show. I think it would be a good idea, but any investors would have to be nuts, given the politics and economies of pretty much every country it goes through until it hits Europe.


8 posted on 09/30/2018 2:39:24 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable animals.")
[ Post Reply | Private Reply | To 3 | View Replies]

To: Zhang Fei

“Their predecessors got the bribes, but the new governments got the bills.”

Well said.

Going forward, it is going to be harder to get away with the bribes, now that conventional wisdom has changed.

Before, politicians looked like they smart shoppers getting lower prices when they went with China. Increasingly, the assumption is that they took bribes.


9 posted on 09/30/2018 2:40:33 PM PDT by BeauBo
[ Post Reply | Private Reply | To 2 | View Replies]

To: Zhang Fei

“The Chinese will discover, as others have before them, that loan documents to these countries are not worth the paper they’re printed on.”

The communist princelings themselves make even those third world s**tholes look like pikers, when it comes to fraudulent debt.

I think it would be average for the assets of any such project to be carried simultaneously on the books of at least three different Chinese businesses or banks.


10 posted on 09/30/2018 2:46:38 PM PDT by BeauBo
[ Post Reply | Private Reply | To 2 | View Replies]

To: BeauBo

[Before, politicians looked like they smart shoppers getting lower prices when they went with China. Increasingly, the assumption is that they took bribes.]


I expect new governments to borrow from China as long as the loan (and bribe) spigot remains on. The problem for China’s taxpayers is that they may get some interest payments, but they will never get the principal back.


11 posted on 09/30/2018 3:16:15 PM PDT by Zhang Fei (They can have my pitbull when they pry his cold dead jaws off my ass.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Calvin Locke

[Shipping to Europe takes on the order of two months. A land route would cut that down.]


Between shrinkage and a land route’s much higher fuel costs, I expect this to be a non-starter for most shippers.


12 posted on 09/30/2018 3:23:57 PM PDT by Zhang Fei (They can have my pitbull when they pry his cold dead jaws off my ass.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Zhang Fei

Pakistan is in bed with China because of India.


13 posted on 09/30/2018 3:46:52 PM PDT by DIRTYSECRET (urope. Why do they put up with this.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Zhang Fei
But, but, one US railway company advertised something like "...200 miles on a single gallon of diesel...".

In reality, it averages 400-800 [freight?] miles per [gross?] ton per gallon of diesel.

But yes, water is generally the cheapest mode.

14 posted on 09/30/2018 3:49:39 PM PDT by Calvin Locke
[ Post Reply | Private Reply | To 12 | View Replies]

To: Calvin Locke
1. Trump, Japan, and Taiwan cause "uncertainties" for China's shipping exports, and 2. Shipping to Europe takes on the order of two months. A land route would cut that down.

#3 - Why were the Romans able to project their power over large distances? They had an advanced system of roads.

15 posted on 09/30/2018 4:09:02 PM PDT by Repeat Offender (While the wicked stand confounded, call me with Thy saints surrounded.)
[ Post Reply | Private Reply | To 3 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson