Translated by: MOS Education Team – Delmont
ZeroHedge reported on October 5, 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 from AidData, a research lab at William & Mary’s Global Research Institute. 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).
The BRI—which serves as a tool for the Chinese Communist Party’s (CCP) global expansion and debt-trap diplomacy—finances enormous loans to developing nations for building infrastructure. . The loans include the development of roads, ports, power plants, mines, telecommunications, or banking institutions. The unpayable loans will force the nations to repay China with goods or land.
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. 35 percent of BRI’s projects dealt with implementation problems, “such as corruption scandals, labor violations, environmental hazards, and public protests.”
In recent years, there were many suspensions and cancellations in BRI participant countries. More and more policymakers in low- and middle-income countries are giving up participation because of overpriced projects, corruption, and debt sustainability issues.
These participating countries expect the new infrastructure to boost their GDPs, but too many examples show that instead of making the country prosperous, they are in a debt crisis and become politically and economically controlled by the CCP.
(This article represents the author’s point of view only)
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Posted by: Lightyear
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