China BRI Summit Russia News: Pakistan Sri Lanka Economic Crisis Due To China Belt & Road Debt Will BRI Turns Russia Debtor Putin Visit
In their article in Foreign Affairs magazine, American foreign policy experts Michael Bannon and Francis Fukuyama said that Sri Lanka is an example of China’s debt trap. He gives the example of India’s neighboring country Sri Lanka, where in 2017, China took over Hambantota port for 99 years for non-payment of loan. After this deal, there was panic in the capitals of America and Western countries and China’s real intentions were revealed to the world. Actually, China wanted to strengthen its access to the Indian Ocean and Persian Gulf through this deep sea Hambantota port.
BRI proved to be a failure worldwide
American experts said that in the last few years a different picture of BRI has emerged. Many Chinese funded projects in the world are proving to be failures. That country is not getting any benefit from them. At the same time, these countries are trapped in China’s high interest debt trap. Leave aside future investments, they are not able to even pay interest on their current loans. This crisis of China’s debt is not limited to Sri Lanka only. Argentina, Kenya, Malaysia, Montenegro, Pakistan, Tanzania and many such countries are covered under it.
Due to this move of China, not only the port but also America and western countries are facing another serious problem. These developing countries are now asking for loans from Western organizations IMF and World Bank to repay China’s debt. China has given loans worth $1 trillion to 100 countries in the last 10 years under BRI. This is much more than the expenditure in developing western countries. Due to this, the possibility is increasing that China is doing this to increase its influence.
Putin is going to visit China, there will be talk on BRI
Now India’s friend Russia, trapped in Ukraine war and sanctions of western countries, is also going to increase cooperation with China on BRI. Not only will Putin participate in the BRI conference, but China is also increasing its investment in Russia. China’s trade with Russia is also increasing very rapidly. Weakening Russia has become largely dependent on China for imports. This is also an alarm bell for India which is 70 percent dependent on Russia for weapons.
This post originally appeared on navbharattimes.indiatimes.com