lofl...
Posted on 10/06/2021 6:40:33 AM PDT by SeekAndFind
China’s Belt and Road Initiative (BRI) is facing growing opposition from participating countries as their debts associated with Chinese projects mount, according to a recent study.
Launched in 2013 by Chinese leader Xi Jinping, the BRI might be losing its impetus due to a debt-based backlash, according to a study from AidData, a research lab at William & Mary’s Global Research Institute.
The study analyzed 13,427 projects backed by China in more than 165 countries over 18 years. The projects’ total value amounts to $843 billion.
AidData found that 35 percent of BRI’s projects dealt with implementation problems, “such as corruption scandals, labor violations, environmental hazards, and public protests.”
Brad Parks, one of the study’s authors, said “a growing number of policymakers in low- and middle-income countries are mothballing high profile BRI projects because of overpricing, corruption and debt sustainability concerns.”
The BRI—which serves as a tool for the Chinese Communist Party’s global expansion—finances enormous loans to developing nations for building infrastructure.
The ostentatious projects have been described as being a part of so-called debt-trap diplomacy since the often unpayable loans will force the nations to repay China with goods or land.
Chinese state-owned banks provide the countries with loans they can barely afford. The loans are then used to pay Chinese companies in order to build infrastructure, including the development of roads, ports, power plants, mines, telecommunications, or banking institutions.
When the nations are unable to pay, they must grant China assets like long-term exploitation rights for natural resources, or leases of infrastructure built using the loans.
According to AidData’s report, 42 low- and middle-income countries have public debt exposure to China that exceeds 10 percent of its gross domestic product (GDP).
“China has used debt rather than aid to establish a dominant position in the international development finance market,” the report said.
(Excerpt) Read more at theepochtimes.com ...
At the end of the day, I am not sure China will be more successful with its Third World aid than the West was. These countries expect freebees (especially if the TW Elites got to feather their nests). The West was largely willing to play along (as long as it got what it wanted in other ways). But it sounds like China is going to try to collect what is owned them — which will make them unpopular in the mid-long term.
The BRI in Sierra Leone is a massive corruption sink. And the Sierra Leonans hate the Chinese. They know they are corrupt, but even they are repelled by the level of corruption the Chinese have brought. The politicians who decide to take the Chinese coin skim every single penny they can get, killing the goose (whatever project was being paid for) then skip the country to live in Jamaica or Britain with their ill gotten proceeds.
Not bragging, but I kinda thought this would happen, but I never thought it would happen this quickly.
WHAT SANE COUNTRY WANTS TO BE INDEBTED TO CHINA?
Even the Taliban is going to turn on their “benefactors.”
“At the end of the day, I am not sure China will be more successful with its Third World aid than the West was.”
Agree. The main problem in the Third World is corruption of the people who lead those countries, and neither the West nor China have a solution to that within existing political structures. In the past, the West did have that problem dealt with, via colonialism, so don’t be surprised if China does the same (i.e., replacing the leadership in 3rd world countries with their own people), in order to recover at least some of their investment. And don’t worry, the locals will obey China, or else.
Ping.
Meanwhile, looks like the recent Ports America deal gave the ChiComs control of most of our major ports.
lofl...
China will be faced with having to resort to military force to get what they were promised.
Might not work so well for them when the rubber hits the road.
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