It is normal for richer nations to give loans to poorer countries. But what is problematic is when the lender tries to use the loan to gain leverage over the borrower. The Chinese government is often accused of using this tactic on developing nations, especially in Africa where Beijing’s debt-trap diplomacy is putting many countries ...
Over the past 10 years, China has loaned billions of dollars to poor countries as part of its Belt and Road Initiative (BRI). As the COVID-19 outbreak has shut down economies, these nations are finding it increasingly difficult to repay their loans. Caught in debt from Chinese loans Chinese loans granted to developing countries tend ...
John Magufuli, the President of Tanzania, has announced that he is canceling a US$10 billion loan offered by China. He called the terms and conditions of the loan so ridiculous that “only a drunkard” would accept it. Chinese loans to Tanzania The canceled Tanzanian loan was signed when the predecessor of Magufuli, Jakaya Kikwete, was ...
The government of Pakistan is reportedly silencing an investigation on the sale of poor women to Chinese men as brides. China is one of the biggest lenders in the Islamic country. As such, the administration has decided to turn a blind eye to the issue rather than risk losing access to future funds. Selling ...
The rise of a major power has a deep influence on how the world works. A benevolent power that promotes personal freedoms will make the world a better place, while a power that seeks to control even the minutest affairs of people will push this world into repression and tyranny. The rise of the Chinese ...
In Kenya, the possibility of China taking over the Mombasa port is raising eyebrows. Beijing extended billions of dollars in loans to construct Kenya’s SGR railway. But the underperformance of the railway means that it is not generating enough revenue to pay off the loans. As a consequence, China is rumored to be considering a ...
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