Beware the Chinese Debt Trap

Loaning money to someone you know can’t pay it back-Or Chinese loan sharks on a state level.

Breitbart-

“Another feature of Chinese debt imperialism is on display in Pakistan, as a local government in hock to Beijing blames its own people for problems with a Belt and Road project. It is not quite as jaw-dropping as the Kenyan government insulting Kenyans as layabouts who might just deserve the abuse they have been getting from Chinese employers, but the WSJ notes that Pakistani authorities are blaming Pakistanis for causing budget shortfalls by failing to pay for Chinese electricity in a timely manner.”

“Given that the largest donor to the IMF is the United States, one can only wonder how eager the Trump administration will be to bail out massive Chinese infrastructure projects, especially since the U.S. State Department spent the last two years warning countries about the dangers of getting on the Belt and Road gravy train and surrendering their sovereignty to Beijing. The Wall Street Journal quotes Secretary of Defense Jim Mattis accusing China of “demanding other nations become tribute states and kowtowing to Beijing” last month.”

I think things will get very interesting in that area of the world shortly.

 

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3 Responses to Beware the Chinese Debt Trap

  1. Paul Scott says:

    The massive fast rail track from Yunnan to Thailand and Malaysia.
    This track is proposed Yunnan> Laos> Thailand > Malaysia >>all China owned.
    The track is not needed, for Thais or Laotians but China.
    The sell is the fast track Bangkok to Chon Buri [ Gulf of Thailand ] shipping]
    The deal appeared first as though it would put Thai children in hock to China for life.
    PM General Prayut is very pro China trade.
    China already has control of transport infrastructure in Thailand. Tthe dragon is moving.
    Now >> It looks likely that China will OWN the rail corridor which it places though Thailand and Laos. In other words China will have a completely controlled transport corridor which will be defended all the way to the south and Malaysia.
    Have a look at the map, observe position of Spratly Islands and take a deep breath.

    • Darin says:

      Its the same here in the US,but on a different tack.They haven’t been flooding our markets with cheap products for no reason.Thier intent all along was to put American businesses out of business and buy up the remaining assets for pennies.
      Then once they had the majority market share,then start jacking up the prices.

      The ,arket they started taking over recently was heavy steel construction.They were fabricating entire buildings and bridges and shipping them over to be errected by Chinese national labor.