Topic: Chinese loans leaves many countries in "hidden debts" (Read 359 times)

China isn't that rich,so they couldn't throw money at the underdeveloped countries in the form of financial aid.
The Chinese want to profit from their financial activities and they want to expand their influence across the world.This is normal for a global super power.Are we going to play the "China bad,USA good" game?
It's strange how many people view the financial expansion of China as "bad" and "suspicious",while the financial dominance of the USA/Western world is supposed to be "good".
US,UK,CA,AU and EU corporations and banks were also giving loans and getting the natural resources of the underdeveloped countries.Why nobody is talking about them?

China is just following the example set by other western powers. Look at the middle eastern nations. Almost the entire economy is in the hands of American corporations. France dominates the economy of its former colonies in Africa. The same can be said about the UK in its former colonies in the Caribbean and Asia. China didn't had any colonies, so it was a late starter. But they had surplus cash at their hand, at a time when the western countries were sinking in public debt. And they used this surplus in a smart way.

Well, aiding other countries with their financial problems by providing loans is part of the business and that's how they become a rich country. Moreover, that's another way of expanding and deepening their relationship with other countries by providing financial aids other than loans.

The Chinese Government is popular in handing out loans, especially to poorer countries, but recent research has it that it has left majority of this developing and underdeveloped countries in massive "hidden debts", see the excerpt below:
The Chinese belt and road initiative is a scheme designed by China to support developing countries by financing numerous projects in their country, but this scheme rather than actually aiding this countries, looks more like it makes them more and more indebted to China, see the excerpt below:
Another flashpoint of the belt and road initiative is that majority of this loans isn't directed to institutions owned by the Central government of the borrowing country, but to state-owned establishments, private organizations etc, but all with the consent of the central government that can jump in to bail out companies that prolly can't repay the loans, thus by extension, many of this debts go underreported, but this countries are actually in greater debt to China than most of the world actually knows, see the excerpt below:

Having said all these, is this a way that the Chinese government intends to keep many countries of the world indebted to them through this debt trap, knowing fully well that most of them would falter in repaying the loan leaving the Chinese government no other option but to seize some of their assets, I see this to be amongst China's plan towards being the country with the best economy in the world in some years to come, and just as is typical with the dictatorial Chinese government, they want to be the only ones at the advantage, leaving others at the receiving end.

Here is the source of the news for better understanding: https://www.cnbc.com/2021/09/30/study-chinese-loans-leave-developing-countries-with-385-billion-in-hidden-debts.html

I'm trying to understand how this will profit the investors, the money raised will be used for projects in the country so what does the investors get? Same without tokens majority of the project that did crowdfunding are producing today. Majority of the countries taking this loans aren't using it for productive things which is why they're getting indebted. Imagine a country borrowing money to pay her workers and still this workers don't get paid fully due to corruption.

If this loans were taken and invested into structures that'll be bringing in revenue to the country economy and sure the loans could easily be paid off but no the corruption in this developing country is what is weighing them down. There's no gain in borrowing to eat instead you get indebted more and that's what's happening.

I just don’t get what’s their motive behind all these borrowing of money to developing countries. Seems to me like they are just trying to render these countries useless by continuing to put them in debts that they can never be able to crawl out from, which is very bad. And knowing very well that all these developing countries are filled with corrupt leaders who are only good at extorting money from the country’s wallet, there is no hope that they are going to be able to pay back all these money that they have borrowed from the Chinese government.

Having said all these, is this a way that the Chinese government intends to keep many countries of the world indebted to them through this debt trap, knowing fully well that most of them would falter in repaying the loan leaving the Chinese government no other option but to seize some of their assets, I see this to be amongst China's plan towards being the country with the best economy in the world in some years to come, and just as is typical with the dictatorial Chinese government, they want to be the only ones at the advantage, leaving others at the receiving end.

The Chinese Government is popular in handing out loans, especially to poorer countries, but recent research has it that it has left majority of this developing and underdeveloped countries in massive "hidden debts", see the excerpt below:
The Chinese belt and road initiative is a scheme designed by China to support developing countries by financing numerous projects in their country, but this scheme rather than actually aiding this countries, looks more like it makes them more and more indebted to China, see the excerpt below:
Another flashpoint of the belt and road initiative is that majority of this loans isn't directed to institutions owned by the Central government of the borrowing country, but to state-owned establishments, private organizations etc, but all with the consent of the central government that can jump in to bail out companies that prolly can't repay the loans, thus by extension, many of this debts go underreported, but this countries are actually in greater debt to China than most of the world actually knows, see the excerpt below:

Having said all these, is this a way that the Chinese government intends to keep many countries of the world indebted to them through this debt trap, knowing fully well that most of them would falter in repaying the loan leaving the Chinese government no other option but to seize some of their assets, I see this to be amongst China's plan towards being the country with the best economy in the world in some years to come, and just as is typical with the dictatorial Chinese government, they want to be the only ones at the advantage, leaving others at the receiving end.

Here is the source of the news for better understanding: https://www.cnbc.com/2021/09/30/study-chinese-loans-leave-developing-countries-with-385-billion-in-hidden-debts.html

China is just doing what the colonial powers have been doing since the mid 20th century, when the former colonies got their independence. These newly independent countries need investment and China has been able to provide that at rates and terms which are much more attractive when compared to those offered by the western countries. Americans and Europeans are complaining, just because they can't get access to the natural resources from these countries at dirt cheap rates, like they did before.

Yes it is because China knew how their government would work out if the government of the other countries is a corrupt leader then this is probably going to help them easily to invade/conquer most of the country by staying them in a debt trap. This was actually an old news but China have been doing this to other underdeveloped countries and most of these country's leader/government doesn't know what their(China) scheme aside from aiding. If the time comes when it's time to pay for what they owed to them, then it's too late when their government knew what was going on.

It's not hidden debts, both countries that participates in the loan are aware of them and the disadvantaged one knows that they're going in a bad debt but they still go in because they're blinded by progress.

It's not hidden debts, both countries that participates in the loan are aware of them and the disadvantaged one knows that they're going in a bad debt but they still go in because they're blinded by progress.

Researchers found that these nations’ debt obligations to China are significantly larger than international research institutions, credit ratings agencies or intergovernmental organizations estimate

This is one of many reasons why I don't like loan with interest rate. I prefer like to use crowdfunding like we usually do in ICO. I think crowdfunding is better then only lend money. Crowdfunding that companies did in ICO not only lift some weight from the company but also gives big profit if the project is succes. Just imagine if those countries do crowfunding using cryptocurrency and every that cryptocurrency holders will get benefit from the project that the governments make. Anyone can get easy money fron loans but the impact is very bad.

Anything coming out of China willl be lies and deceit. I wouldn't trust a chinese with anything. They would rather "save face" than alert the world of a extremely contagious virus that kills 2-3% of the infected population. They even lie to their own people, even if it costs them their lives. They massacre falon gong practicioners based on a lie and they commit genocide on the Uigyurs also based on lies. Never trust China. China will be the end of the world.

China has been playing the long game for decades, and this is just another chapter in it.  They're attempting to remake the world financial order by developing the satellite economies that will be tightly aligned and reliant on China, as a counterweight to the US-dominated financial system that the US has used to its geopolitical advantage for the last hundred years.

I think this came out a few years ago as something China has been doing quite a lot to countries (especially in Africa).

It's been seen as a potential to be a strategy for invading/controlling countries, however it might just be a line between that and keeping countries in favour of them (to do things like not impose trade sanctions on China).

From my own view, I don't see it extremely petty that the Chinese government gives out loans to a certain developing country without doing a proper investigation about the weekly or possible earning of the environs that want to be constructed before granting a single loan. To me, this is simply an idea of debt trap.

The Chinese belt and road initiative is designed to help/provide assistance for other countries, and the Chinese government knows fully well that most of this countries are actually in need of these loans, thus I find it extremely petty that the Chinese government have ulterior motives to put their borrowers into a debt trap and either tap from their resources or just basically out of lack of choice get their support in economic and political matters, it doesn't matter if they actually benefitted from the loan, but it's the concealed intention behind giving out the loan in the first place that's the bigger problem.