[China’s “Debt-Trap diplomacy” Unveiled: Part 1/6]
According to an article by John Pomfret on Washington Post (August 27, 2018), China employs the tactics of “debt-trap diplomacy” to gain influence overseas by bankrupting its partners and bending them to its will.
This series draws your attention to China's ”One belt and one road initiative” that was introduced since 2013.
As of 2018, China is involved in the investment of transportation, energy, and telecommunications infrastructure in at least 68 countries in Europe, Africa, and Asia.
The effects of the One Belt and One Road initiative are collected and summarized from different reports as follows:
(to be continued)
Reference: John Pomfret, ‘China’s Debt Traps Around the World Are a Trademark of Its Imperialist Intentions’, Washington Post, August 27, 2018;
Michael Kugelman, “Understanding China's Belt and Road Initiative”, Asian Affairs 2019, https://www.tandfonline.com/doi/full/10.1080/03068374.2019.1602383
#beltandroad #debttrap
According to an article by John Pomfret on Washington Post (August 27, 2018), China employs the tactics of “debt-trap diplomacy” to gain influence overseas by bankrupting its partners and bending them to its will.
This series draws your attention to China's ”One belt and one road initiative” that was introduced since 2013.
As of 2018, China is involved in the investment of transportation, energy, and telecommunications infrastructure in at least 68 countries in Europe, Africa, and Asia.
The effects of the One Belt and One Road initiative are collected and summarized from different reports as follows:
(to be continued)
Reference: John Pomfret, ‘China’s Debt Traps Around the World Are a Trademark of Its Imperialist Intentions’, Washington Post, August 27, 2018;
Michael Kugelman, “Understanding China's Belt and Road Initiative”, Asian Affairs 2019, https://www.tandfonline.com/doi/full/10.1080/03068374.2019.1602383
#beltandroad #debttrap
[China’s “Debt-Trap diplomacy” Unveiled: Part 2/6]
Effects of the One Belt and One Road initiative (1): High-interest debt risks
In 2018, there are 23 countries (10 from Asia, 7 from the Middle East and Africa, and 6 from Europe and Eurasia) at high risk of debt distress under the One Belt One Road Initiative.
In particular, there are 8 countries with extremely high risks: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.
In Africa, many countries such as Djibouti, Burundi, Chad, Congo, Mozambique, Ethiopia and Kenya are in debt distress or at high risk of it due to China's lending practices.
The consequence is unimaginable: For instance Djibouti has a public debt risen to 88 percent of the country’s GDP and has become China’s first overseas military base.
Reference: ‘Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective’, Center for Global Development 2018
#debttrap #beltandroad
Effects of the One Belt and One Road initiative (1): High-interest debt risks
In 2018, there are 23 countries (10 from Asia, 7 from the Middle East and Africa, and 6 from Europe and Eurasia) at high risk of debt distress under the One Belt One Road Initiative.
In particular, there are 8 countries with extremely high risks: Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan, and Tajikistan.
In Africa, many countries such as Djibouti, Burundi, Chad, Congo, Mozambique, Ethiopia and Kenya are in debt distress or at high risk of it due to China's lending practices.
The consequence is unimaginable: For instance Djibouti has a public debt risen to 88 percent of the country’s GDP and has become China’s first overseas military base.
Reference: ‘Examining the Debt Implications of the Belt and Road Initiative from a Policy Perspective’, Center for Global Development 2018
#debttrap #beltandroad
[China’s “Debt-Trap diplomacy” Unveiled: Part #3/6]
Effects of the One Belt and One Road initiative:
(2) Corruption, procurement and lack of transparency on governmental level
(3) Stranded infrastructure
234 out of 1,674 Chinese-invested projects in the 66 Belt and Road countries encountered problems such as public opposition to projects, objections over labour policies, performance delays, concerns over national security, deriving from poor administration
(to be continued)
Source: “China’s Belt and Road difficulties are proliferating across the world”, Financial Times, 9 July 2018,
https://www.ft.com/content/fa3ca8ce-835c-11e8-a29d-73e3d454535d
#beltandroad #debttrap
Effects of the One Belt and One Road initiative:
(2) Corruption, procurement and lack of transparency on governmental level
(3) Stranded infrastructure
234 out of 1,674 Chinese-invested projects in the 66 Belt and Road countries encountered problems such as public opposition to projects, objections over labour policies, performance delays, concerns over national security, deriving from poor administration
(to be continued)
Source: “China’s Belt and Road difficulties are proliferating across the world”, Financial Times, 9 July 2018,
https://www.ft.com/content/fa3ca8ce-835c-11e8-a29d-73e3d454535d
#beltandroad #debttrap
Ft
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[China’s “Debt-Trap diplomacy” Unveiled: Part 4/6]
Effects of the One Belt and One Road initiative:
(4) Environmental risks
In Africa, China's investment and infrastructure has stripped the continent off its natural resources, employment and growth, resulting in deep debt, pollution, destruction of agrarian land and unregulated mining.
In Cambodia, Lao PDR, Myanmar, Thailand and Vietnam, China-backed hydropower projects along the Mekong River have caused river flow to change and blocked fish migration.
Scholars and practitioners's distinct and valuable message about the state of environmental risk along the Belt and Road: “More clean projects don’t compensate for all the dirty ones”.
(to be continued)
Reference: “China’s BRI negatively impacting the environment,” The ASEAN post, 19 February 2019, https://theaseanpost.com/article/chinas-bri-negatively-impacting-environment;
"China's infrastructure plans offer a contradiction”, 2 July 2019, https://today.duke.edu/2019/07/more-good-more-bad-china’s-infrastructure-plans-offer-contradiction
#beltandroad #debttrap
Effects of the One Belt and One Road initiative:
(4) Environmental risks
In Africa, China's investment and infrastructure has stripped the continent off its natural resources, employment and growth, resulting in deep debt, pollution, destruction of agrarian land and unregulated mining.
In Cambodia, Lao PDR, Myanmar, Thailand and Vietnam, China-backed hydropower projects along the Mekong River have caused river flow to change and blocked fish migration.
Scholars and practitioners's distinct and valuable message about the state of environmental risk along the Belt and Road: “More clean projects don’t compensate for all the dirty ones”.
(to be continued)
Reference: “China’s BRI negatively impacting the environment,” The ASEAN post, 19 February 2019, https://theaseanpost.com/article/chinas-bri-negatively-impacting-environment;
"China's infrastructure plans offer a contradiction”, 2 July 2019, https://today.duke.edu/2019/07/more-good-more-bad-china’s-infrastructure-plans-offer-contradiction
#beltandroad #debttrap
The ASEAN Post
China’s BRI Negatively Impacting The Environment
Environmental design requirements are not integrated in BRI project cycles, the consequences of which Southeast Asians are sure to pay dearly for in the years to come.
China’s “Debt-Trap diplomacy” Unveiled: Part 5/6]
Effects of the One Belt and One Road initiative:
(5) social risks
The economic zones in Pakistan are only reserved for Chinese companies only.
Chinese workers are usually employed in China-funded infrastructure plans, so the local workers in the host countries have little benefit and are subject to unemployment.
(6) a loss of sovereignty over key assets
Some examples:
In Zambia, China takes over the country's international airport to settle a debt instalment
After the financial crisis in Greece, Chinese firms bought 51% of the port authority in Piraeus port in 2016
In 2017, Sri Lanka gave its strategic Hambantota port to China to operate for 99 years om order to pay off its debt
(to be continued)
Reference: “The 'New Great Game': China's Debt-Trap Diplomacy”, The European Foundation for South Asian Studies, October 2017
https://www.efsas.org/publications/study-papers/the-new-great-game-chinas-debt-trap-diplomacy;
“China's Debt Diplomacy”, Foreign Policy, 15 April 2019, https://foreignpolicy.com/2019/04/25/chinas-debt-diplomacy/
#beltandroad #debttrap
Effects of the One Belt and One Road initiative:
(5) social risks
The economic zones in Pakistan are only reserved for Chinese companies only.
Chinese workers are usually employed in China-funded infrastructure plans, so the local workers in the host countries have little benefit and are subject to unemployment.
(6) a loss of sovereignty over key assets
Some examples:
In Zambia, China takes over the country's international airport to settle a debt instalment
After the financial crisis in Greece, Chinese firms bought 51% of the port authority in Piraeus port in 2016
In 2017, Sri Lanka gave its strategic Hambantota port to China to operate for 99 years om order to pay off its debt
(to be continued)
Reference: “The 'New Great Game': China's Debt-Trap Diplomacy”, The European Foundation for South Asian Studies, October 2017
https://www.efsas.org/publications/study-papers/the-new-great-game-chinas-debt-trap-diplomacy;
“China's Debt Diplomacy”, Foreign Policy, 15 April 2019, https://foreignpolicy.com/2019/04/25/chinas-debt-diplomacy/
#beltandroad #debttrap
www.efsas.org
The 'New Great Game': China's Debt-Trap Diplomacy
[China’s “Debt-Trap diplomacy” Unveiled: Part 6/6]
The Risks of China’s “Debt-Trap diplomacy”:
- China gains leverage economic, political and military power
- Total Chinese monopoly
As John Pomfret writes on Washington Post, “the Chinese have called their system 'socialism with Chinese characteristics.' Perhaps 'imperialism with Chinese characteristics makes more sense.”
Reference: John Pomfret, ‘China’s Debt Traps Around the World Are a Trademark of Its Imperialist Intentions’. Washington Post, August 27, 2018, https://www.washingtonpost.com/news/global-opinions/wp/2018/08/27/chinas-debt-traps-around-the-world-are-a-trademark-of-its-imperialist-ambitions/?utm_term=.0d474e84218c
#beltandroad #debttrap
The Risks of China’s “Debt-Trap diplomacy”:
- China gains leverage economic, political and military power
- Total Chinese monopoly
As John Pomfret writes on Washington Post, “the Chinese have called their system 'socialism with Chinese characteristics.' Perhaps 'imperialism with Chinese characteristics makes more sense.”
Reference: John Pomfret, ‘China’s Debt Traps Around the World Are a Trademark of Its Imperialist Intentions’. Washington Post, August 27, 2018, https://www.washingtonpost.com/news/global-opinions/wp/2018/08/27/chinas-debt-traps-around-the-world-are-a-trademark-of-its-imperialist-ambitions/?utm_term=.0d474e84218c
#beltandroad #debttrap
China’s ‘island chain’ plan: These islands define Beijing’s growing ambitions
#Newspaper #China
In order to become a global superpower, China has shown the world its ambitions by a series of ’five island chains’ plans, according to the analysis of the US Defence Intelligence Agency.
After achieving the “first island chain”, which includes the claims on the East and South China Seas; and following a rough ‘nine-dash line’ from Japan in the north, passing Taiwan and the Philippines down to Singapore and Malaysia, China is now preparing for its “second island chain”. It is believed that the “third, fourth, and fifth island chains” will be the next missions of China.
Beijing has been following the U.S.’ logic of projecting power over a region by building island bases and extensive artificial island fortresses in the South China Sea. The danger brought by these island chains and expansions would be a dramatic shift in regional power dynamics for the Asia-Pacific region.
Some countries are more worried than others on this issue - Australia, Singapore, and Japan are all doubting whether they could rely on their treaties and relationships with the U.S., the UK and Europe in the face of aggressive expansion from China.
#Xi #ChinaThreat #BeltandRoad
Source: The Advertiser (Feb-2019)
https://bit.ly/30q4ggV
#Newspaper #China
In order to become a global superpower, China has shown the world its ambitions by a series of ’five island chains’ plans, according to the analysis of the US Defence Intelligence Agency.
After achieving the “first island chain”, which includes the claims on the East and South China Seas; and following a rough ‘nine-dash line’ from Japan in the north, passing Taiwan and the Philippines down to Singapore and Malaysia, China is now preparing for its “second island chain”. It is believed that the “third, fourth, and fifth island chains” will be the next missions of China.
Beijing has been following the U.S.’ logic of projecting power over a region by building island bases and extensive artificial island fortresses in the South China Sea. The danger brought by these island chains and expansions would be a dramatic shift in regional power dynamics for the Asia-Pacific region.
Some countries are more worried than others on this issue - Australia, Singapore, and Japan are all doubting whether they could rely on their treaties and relationships with the U.S., the UK and Europe in the face of aggressive expansion from China.
#Xi #ChinaThreat #BeltandRoad
Source: The Advertiser (Feb-2019)
https://bit.ly/30q4ggV
adelaidenow
China’s secret island plans
<p>Beijing wants to be an international super power. To achieve this, it needs to carve out a vast swath of economic and military influence. And it has a plan.</p>
Xi Jinping Signs Order for Military Training: Armed Forces to Improve Exercises, Ensure They Can Win in Any Possible War
Chairman Xi, who is general secretary of CCP Central Committee and chairman of the Central Military Commission, signed the first 2020 order, that listed priorities in the training of the People’s Liberation Army and the Armed Police Force.
All the priorities point towards enhancement of the troops’ combat preparedness and making a close observation on adversaries’ moves, so to ensure victory in any possible war.
The order instructed armed forces to stick to Xi’s thoughts on socialism with Chinese characteristics, and to uphold Xi’s military strategies in the new era. Specific instructions include further strengthening troops’ combat training, thorough research on enemies, operational goals and combat environment, more training for joint operations, strengthening the participation of civilians, and injection of more scientific and technical factors.
The order demands that initiatives and training must be focused on elements that lead to victory.
#Xi #ChinaThreat #BeltandRoad
ECNS (03-Jan)
http://www.ecns.cn/m/news/politics/2020-01-03/detail-ifzsiwze9785147.shtml
Chairman Xi, who is general secretary of CCP Central Committee and chairman of the Central Military Commission, signed the first 2020 order, that listed priorities in the training of the People’s Liberation Army and the Armed Police Force.
All the priorities point towards enhancement of the troops’ combat preparedness and making a close observation on adversaries’ moves, so to ensure victory in any possible war.
The order instructed armed forces to stick to Xi’s thoughts on socialism with Chinese characteristics, and to uphold Xi’s military strategies in the new era. Specific instructions include further strengthening troops’ combat training, thorough research on enemies, operational goals and combat environment, more training for joint operations, strengthening the participation of civilians, and injection of more scientific and technical factors.
The order demands that initiatives and training must be focused on elements that lead to victory.
#Xi #ChinaThreat #BeltandRoad
ECNS (03-Jan)
http://www.ecns.cn/m/news/politics/2020-01-03/detail-ifzsiwze9785147.shtml
ECNS
Xi signs order for military training-Ecns.cn
#Newspaper
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
//potential takeovers by Chinese state-owned enterprises (SOEs) are particularly worrisome, as they could be used on behalf of the Communist Party of China to advance its foreign strategic interests.
//Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states. Those concerns reached new highs in 2013 when Ottawa threatened to reject — but ultimately approved — China’s $15-billion purchase of oilsands giant Nexen. More recently, in 2018, the Liberal government rejected the takeover of Canadian construction firm Aecon by a Chinese SOE, citing national security risks.
//Burton on Monday reiterated concerns about Chinese-led takeovers in strategic assets like energy or telecommunications. Many investments made by Chinese firms are done purely out of strategic, rather than commercial interests, he said — like those being pursued under China’s Belt and Road initiative.
//Those projects have increasingly come in the form of “debt trap diplomacy,” Burton said, in which the Chinese government loans money to struggling states under harsh terms, as part of a long-term plan to take over the asset at a later date.
//In April, Industry Minister Navdeep Bains put forward policy changes allowing Ottawa to more closely scrutinize “investments of any value, controlling or non-controlling” by foreign companies, particularly those involving public health or the supply of critical goods and services. He also removed thresholds for reviewing investments in any sector by state-owned or state-connected entities.
//tightening language around what constitutes a strategic interest could prove challenging, as it would force Ottawa to effectively choose essential versus non-essential industries.
Full article: Sherwood Park News, (8 Jun)
#Pandemic #Canada #ForeignTakeover #StateLedAcquisition #BeltAndRoad #NationalSecurity
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
//potential takeovers by Chinese state-owned enterprises (SOEs) are particularly worrisome, as they could be used on behalf of the Communist Party of China to advance its foreign strategic interests.
//Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states. Those concerns reached new highs in 2013 when Ottawa threatened to reject — but ultimately approved — China’s $15-billion purchase of oilsands giant Nexen. More recently, in 2018, the Liberal government rejected the takeover of Canadian construction firm Aecon by a Chinese SOE, citing national security risks.
//Burton on Monday reiterated concerns about Chinese-led takeovers in strategic assets like energy or telecommunications. Many investments made by Chinese firms are done purely out of strategic, rather than commercial interests, he said — like those being pursued under China’s Belt and Road initiative.
//Those projects have increasingly come in the form of “debt trap diplomacy,” Burton said, in which the Chinese government loans money to struggling states under harsh terms, as part of a long-term plan to take over the asset at a later date.
//In April, Industry Minister Navdeep Bains put forward policy changes allowing Ottawa to more closely scrutinize “investments of any value, controlling or non-controlling” by foreign companies, particularly those involving public health or the supply of critical goods and services. He also removed thresholds for reviewing investments in any sector by state-owned or state-connected entities.
//tightening language around what constitutes a strategic interest could prove challenging, as it would force Ottawa to effectively choose essential versus non-essential industries.
Full article: Sherwood Park News, (8 Jun)
#Pandemic #Canada #ForeignTakeover #StateLedAcquisition #BeltAndRoad #NationalSecurity
sherwoodparknews
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states
#Newspaper
Myanmar calls out China for arming terror groups, asks world to help
//Myanmar, China’s closest ally in southeast Asia, has pointed fingers at Beijing for arming insurgent groups with sophisticated weapons and sought international cooperation to suppress rebel groups... Myanmar’s Senior General Min Aung Hlaing said terrorist organisations active in Myanmar are backed by ‘strong forces’
//the army chief was referring to Arakan Army (AA) and Arakan Rohingya Salvation Army (ARSA), terrorist organisations active in the Rakhine State in western Myanmar that borders China.
//The Myanmarese ethnic rebel groups operating along the Chinese border mostly use Chinese weapons, prompting suspicions about Beijing’s role as part of an effort to keep Myanmar under control.
//Officials say Beijing has been desperate to push the China-Myanmar Economic Corridor that seeks to give China a strategic opening on to the Bay of Bengal and eastern part of Indian Ocean Region. There has also been some concern around the Chinese loans extended to execute these projects that led to worries that Myanmar shouldn’t land in China’s debt trap.
Full article: Hindustan Times, (02-Jul)
#Myanmar #China #TerrorGroups #Loan #MilitarySupport #BeltAndRoad
Myanmar calls out China for arming terror groups, asks world to help
//Myanmar, China’s closest ally in southeast Asia, has pointed fingers at Beijing for arming insurgent groups with sophisticated weapons and sought international cooperation to suppress rebel groups... Myanmar’s Senior General Min Aung Hlaing said terrorist organisations active in Myanmar are backed by ‘strong forces’
//the army chief was referring to Arakan Army (AA) and Arakan Rohingya Salvation Army (ARSA), terrorist organisations active in the Rakhine State in western Myanmar that borders China.
//The Myanmarese ethnic rebel groups operating along the Chinese border mostly use Chinese weapons, prompting suspicions about Beijing’s role as part of an effort to keep Myanmar under control.
//Officials say Beijing has been desperate to push the China-Myanmar Economic Corridor that seeks to give China a strategic opening on to the Bay of Bengal and eastern part of Indian Ocean Region. There has also been some concern around the Chinese loans extended to execute these projects that led to worries that Myanmar shouldn’t land in China’s debt trap.
Full article: Hindustan Times, (02-Jul)
#Myanmar #China #TerrorGroups #Loan #MilitarySupport #BeltAndRoad
Hindustan Times
Thousands flee in expectation of Myanmar military operation
The exodus from more than 40 villages is continuing almost a week later, even though the order was revoked last Friday Rakhine state’s security and border affairs minister.