China will rule the world by 2050 and it is not that astonishing seeing the current affairs done by china. Historically, Domination to other country used to be achieved by direct military force. world domination has been thought of in terms of a nation expanding its power to the point that all other nations are subservient to it. This may be achieved by establishing a hegemony, an indirect form of government and of imperial dominance in which the hegemon (leader state) rules geopolitically subordinate states by means of its implied power by the threat of force. But China is
How China Trap Sri Lanka with billion $ debt.
China has come up with the idea of Utilizing their easy own money to expand its territory. It always wanted to set up a strong base in Sri Lanka, India’s southern neighbour. Doing so would give it two advantages. First, it will be a direct challenge to India’s naval superiority in the Indian Ocean region. Second, China will gain a foothold in a critical commercial seaway and will be in a better position to secure its maritime trade of crude oil.
About 80% of China’s crude oil being imported from the Arabian countries passes through the Strait of Malacca. And India and other countries, in case of growing hostility or war, can easily choke the passage. The western approach of the Strait of Malacca is near the Andaman and Nicobar Islands while the United States can easily block its eastern approach.
And going by the current developments in Sri Lanka, China seems well on its way to get a strong foothold in the country. The absolute control of the Colombo Port City and the 99-year lease of the Hambantota Port as well as 15,000 acres of land surrounding it in Sri Lanka are signs of Chinese expansionism taking root in the 21st century.
Sri Lanka recently passed the Colombo Port City Economic Commission Bill. The legislation gives China absolute authority in an area that is just 700 km away from Chennai in India. Opposition parties in Sri Lanka have alleged that the bill is intended to undermine the country’s sovereignty and create a Chinese colony. Sri Lanka’s Supreme Court, while hearing petitions against the bill, also said that certain provisions of it were unconstitutional.
Sri Lanka is now going to have a Chinese colony that will not only affect the nation’s sovereignty but also its culture in the long run. China is building the port city on reclaimed land near the Colombo Port and the $1.4 billion project is totally loaned and financed by China.
Sri Lanka’s legal and constitutional oversights will not apply to this port city. Also, the bill allows the port city area to have its own currency and that means China may introduce the Yuan soon. Also, China will regulate movement of the people in the area.
The area may also see Mandarin language imposition, as, according to an IANS report, two recent big events in Sri Lanka saw signboards of government projects replacing Tamil with Mandarin.
Years of civil war had largely ravaged Sri Lanka and the country desperately needed financial support to rebuild its economy and infrastructure. It was a golden opportunity for China based on the recent goodwill it had earned. The loan requirements of the Rajapaksa government saw a rapid increase and China never said “no” to any Lankan loan request.
The past 15 years have seen Sri Lanka’s external debt rising over threefold mostly due to projects conceived by the Rajapaksa government in consultation with the Chinese. As per the Trading Economics website database, Sri Lanka’s external debt in 2020 was $49.211 billion, or 58.58% of the country’s 2019 GDP of 84 billion dollars.
This year, loans worth $4.5 billion are maturing in Sri Lanka, higher than its foreign exchange reserve base of $4 billion, as per a Financial Times report. That means the country is bound to take additional loans to settle even its maturing debts and a Rajapaksa regime back in power will find an easy solution in China.
In June 2018, the New York Times published a story, ‘How China Got Sri Lanka to Cough Up a Port’, that clearly relates to the Chinese intent.
China’s designs behind a port on the southern coast of Sri Lanka were always strategic. Most of the feasibility studies done for a port in the small fishing town Mahinda Rajapaksa was native of said the product would never be commercially viable, especially in a small country like Sri Lanka. The island nation already had the strategically located Colombo Port and it was not advisable to develop another big port when the existing one needed expansion.
India and the US denied Sri Lankan requests for a loan to develop it but China welcomed it, though on conditions like China’s state-owned company with Chinese labourers would develop the port. Also, Beijing gave this loan to Sri Lanka on a higher interest rate.
Loans by global agencies like the World Bank or the IMF range between 1 to 3% interest rates. Many times, loans are given even at sub-one per cent rates. As per the New York Times article, the first loan for the port project, $307 million, was settled at 1 to 2% interest rates after the 2008 global financial crash. But when Sri Lanka needed more loans for the same project and approached China for it, with a loan request proposal worth $757 million, Beijing forced Sri Lanka to accept a higher interest rate and applied the same even to the first loan it had given for the project.
The first phase of Hambantota Port started operations in November 2010 but, as the feasibility studies had predicted, the port could never be commercially viable. Under mounting debt, Sri Lanka’s new government tried to renegotiate the debt repayment timeline. But China was not ready to listen. Instead, it asked for equity or ownership. Also, it demanded 15,000 acres of land around the Hambantota Port to develop an industrial zone to be controlled by China.
Sri Lanka’s new government under Maithripala Sirisena had no option but to agree to it. So, for a debt of $1.4 billion, China got a controlling stake in a port in Sri Lanka that is just 300 km from the Indian mainland for 99 years.
How China Trap Nepal with Debt?
Being Nepal is so close from both aspect Political and geographical china has not left Nepal to trap of Money. China had gave money to build some mega Projects in Nepal .According to mof.gov.np
The Government of People’s Republic of China has agreed to provide grant and concessional
loan assistance of RMB Yuan 408 million (equivalent to NRs 6671 million) to acquire and
purchase Six aircrafts. Out of total assistance RMB Yuan 180 million (equivalent to NRs 2943
million) will be used to acquire one MA60 and one Y12E aircraft on grant basis and up to
RMB 228 million (equivalent to NRs 3728 million) will be used to purchase one MA60 and
three Y12E aircraft on loan basis. Three separate agreements to this effect namely,
Framework Agreement on Provision of Concessional Loan Assistance, Economic and
Technical Cooperation Agreement for Grant Assistance and Government Concessional Loan
Agreement, and Letter of Exchange were signed and exchanged between the Government of
Nepal and the Government of People’s Republic of China in the Ministry of Finance,
The concessional loan received from The Export-Import Bank of China will be sub landed to
the Nepal Airlines Corporation for the purchase of aircraft. The loan will be repaid in 20 years
with the grace period of 7 years and the interest of the loan will be 1.5 %.
Mr. Shanta Raj Subedi, Secretary, Ministry of Finance and Mr. Wu Chuntai, Ambassador of
the People’s Republic of China signed Framework Agreement on Provision of Concessional
Loan Assistance, Economic and Technical Cooperation Agreement for Grant Assistance and
Letter of Exchange on behalf of the Government of Nepal and the Government of People’s
Republic of China respectively. Mr. Madhu Kumar Marasini, Joint Secretary Ministry of
Finance and Gao Bing, Deputy General Manager, The Export-Import Bank of China signed the
Government Concessional Loan Agreement on behalf of Government of Nepal and The
Export-Import Bank of China.
The Government of Nepal has expressed its sincere appreciation to the Government of
China for this assistance and its continues support in the socio-economic development of
Ministry of Finance
28 November 2013
(Mangsir 13, 2070
And the question here is are those Aircraft flying in the sky of Nepal. If not so then who is responsible to that huge Debt. Are they Nepalese citizen ?
How china Trap African Union?
Chinese creditors will likely intensify their efforts to restructure outstanding loans in the 6-10 African countries that face the most acute debt repayment challenges. Just as Chinese policy banks and other lenders reportedly restructured loans in Angola and Zambia this year.
That process will likely extend to Kenya, Ethiopia, and Djibouti next year. There’s no evidence that Beijing will cancel any of its commercial or concessional loans. Instead it will probably provide interest repayment moratoriums as part of the G20 DSSI, extend repayment terms and renegotiate interest rates.
Two-way trade is likely to rebound next year from its +20% decline in 2020, due largely to a revitalised Chinese economy. But it’s highly unlikely that it’ll grow beyond 2019 levels (roughly around $208bn) due to China’s ongoing drive to diversify its sourcing of raw materials so as to avoid regional dependency for certain resources.
For example, oil buying will continue to shift to Gulf countries, the Americas, and Russia. The notable exception, though, will be coltan, cobalt, and other strategic minerals found in the DRC. Chinese imports into Africa will likely remain robust, especially as many local suppliers of processed goods across the continent have struggled to stay in business. Chinese technology companies will build on their already formidable presence in the African tech sector with the expansion of 5G services provided by companies like Huawei and ZTE.
There’s no indication that Transsion’s grip on +50% of the African mobile phone market is loosening. After hesitating to enter the market, Alibaba now looks poised to expand its presence in Africa, particularly via Aliexpress. It will provide new competition to local players like Jumia and Kilimall. Expanded use of Chinese surveillance technology will also likely become a more contentious issue next year among both African and international civil society stakeholders.
China Dispute with Vietnam
Vietnam has joined the Philippines in vocally opposing a Chinese fishing fleet’s long stay at an unoccupied reef in a disputed Asian sea, and analysts say China is expected to back away and avoid a bigger dispute – but only for now.
A Ministry of Foreign Affairs spokeswoman in Hanoi said March 25 the “activities of Chinese ships…seriously violate Vietnam’s sovereignty.” A Vietnamese coast guard vessel was moored near Whitsun Reef in the disputed Spratly Islands last week, the Marine Traffic website showed.
Philippine defense officials began in early March asking that the Chinese ships leave. Manila’s Department of National Defense said March 28 a Philippine navy coast guard vessel and military plane were monitoring the reef.
China would withdraw without a statement, probably citing the weather as a cause, said Collin Koh, a maritime security research fellow at Nanyang Technological University in Singapore. But it could easily return as part of a longer-term plan to control the now unoccupied islet as it has done to control other features in the sea, he said.
“Right now, you have the Vietnamese, you have the Filipinos now chiming in on this issue,” Koh said. “At least if you raise it in the public and capture the attention of the public, it would actually very likely force China to sort of roll back eventually, but the only thing is that even if the Chinese roll back now, there will be chances that they will return anyway.”
Brunei, Malaysia, the Philippines, Taiwan and Vietnam dispute all or part of Beijing’s claims to about 90% of the 3.5 million-square-kilometer sea that’s prized for natural resources including fisheries. China has the strongest armed forces among the six claimants, prompting others to look toward the United States for support.
Beijing has slowly occupied contested islets since the 1950s, sometimes with reclaimed land. Today its holdings support airstrips, hangars and radar systems. Chinese officials cite historical usage records to defend their access to the sea including tracts inside the 370-kilometer-wide exclusive economic zones of other countries.
“The continued presence of Chinese maritime militias in the area reveals their intent to further occupy features in the West Philippine Sea (South China Sea),” Philippine national defense Secretary Delfin Lorenzana said in a Facebook post Sunday. He said 44 fishing boats remained at Whitsun despite calm weather over the weekend.
The defense chief said China had “done this before” at Scarborough Shoal and Mischief Reef, two other islets in the disputed sea. Whitsun technically could be landfilled for development too, Koh said.
The Philippines protested China’s first structures on Mischief Reef in 1994 and 1995 and China waited another four years to add to its development there, sparking more fire from Manila. The reef supports Chinese aircraft hangars today. Chinese vessels occupied Scarborough Reef northwest of Manila in 2012 during a long standoff with the Philippines. They eventually took control of the prime fish-spawning shoal.
Some scholars say Philippine leaders protested loudly over the past month because they remember what happened to the other two islets. “I think the Philippines learned a lesson from Scarborough Shoal, from Mischief Reef,” said Alexander Vuving, a professor at the Daniel K. Inouye Asia-Pacific Center for Security Studies in Hawaii.
China for now intends to negotiate with Southeast Asian countries over a maritime code of conduct on how to handle any mishaps in the contested sea. Chinese officials hope more broadly to gain favor so rival claimants avoid turning again toward China’s superpower rival the United States for help. To aggravate Southeast Asian states now would frustrate these goals, Koh said.
China trap Pakistan
“Beijing conveyed its concerns during a meeting held on March 30 to discuss financing modalities of the project,” the Pakistan government officials said as per the report.
“The Chinese side have sought clarification regarding the possibility of raising further debt by Pakistan during currency of the IMF program. The Pakistani side clarified that debt situation is being monitored and there is no restriction under the programme to raise debt for viable projects,” Deputy Chairman Planning Commission of Pakistan Dr Jehanzeb Khan told the Pakistan daily.
Amid lack of progress on several CPEC projects, subtle signs of unease have emerged between the two countries over the future direction and funding of mega projects, under increasing scrutiny of media and the public.
According to a report published in Modern Diplomacy, the outcome of recent meetings between the two countries reveals significant scaling down of Pakistan’s expectations regarding the inclusion of more projects under CPEC phase II.
Fabien Baussart in an opinion piece for Modern Diplomacy last month had said, “While the country has for long portrayed USD 6.8 billion Main Line-I project to be the main artery of the Pakistan Railways and tried to convince China for financing the project, the Chinese side has tried to avoid any commitment for funding.”
Pakistan has been unable to secure any favourable consideration including the concessionary loan at an interest rate of one per cent, said Baussart while adding that China is only willing to offer a mix of commercial and concessional loans to fund the rail project backed by suitable guarantees by Pakistan.
In 2015, China announced an economic project in Pakistan worth USD 46 billion. With the CPEC, Beijing aims to expand its influence in Pakistan and across Central and South Asia in order to counter the influence of the United States and India.
The CPEC would link Pakistan’s southern Gwadar port (626 kilometres west of Karachi) in Balochistan on the Arabian Sea to China’s western Xinjiang region. It also includes plans to create road, rail, and oil pipeline links to improve connectivity between China and the Middle East. But at the end china will for sure provide aid to Pakistan to trap it and china is doing so to all other rest nation including India , USA, Europe which show China will rule the world one day.