Smart Leaders Don’t Take Out Infrastructure Loans from China
What It Means to Borrow Money From China
Beijing readily loans money to country after country, making it possible for their governments to finance ambitious projects. But that also means that countries have become heavily indebted to Xi’s government to pay for their modernization goals… __ Pnut
Governments are temporary. But while they are in power they can create damages for their countries lasting a hundred years or longer. All the while officials are packing their Swiss bank accounts with under the table inducements and kickbacks.
The leaders of Sri Lanka and Malaysia who borrowed so much from China — they are gone now, out of office. The nation itself is left to face the consequences of default — and giving up valuable national assets to a foreign power, China, as loss of collateral.
If Kenya defaults on a 2bn euro debt to China, it may have to hand over Mombasa’s port to the Asian giant.
A leaked copy of the contract Kenya signed with China for the construction of the giant Mombasa-Nairobi Standard Gauge railway project is causing political shockwaves in the country.
This is amid revelations that the country could lose the port of Mombasa to the Chinese government, if the national Railway Corporation defaults in the payment of Sh227 billion owed to Exim Bank of China. __ AllAfrica
It costs the temporary leaders of these countries nothing to borrow $billions from China to pay for Chinese-built infrastructure. The people see the shiny new railways, stadiums, and highways, and for a while feel more positive about their “suddenly prosperous” country. But then the bill comes due, and their country is exposed as another debt slave and colonial asset to China.
Whatever profitable sector you have, the Chinese would agree to take it as a guarantee for the loans they provide in case of defaults; so they could take over those. In Zambia, reports have indicated that an energy producing firm has been taken over until the nation’s debt is settled. Similarly, when the government of Ethiopia defaults, there is a possibility that they would nationalize any profitable enterprise and Ethiopian Airlines might be one that fits their interest. Once you are indebted you end up being dictated. __ ReporterEthiopia
The world expects China to steal, pirate, cheat, poison, and copy its way to global power. Besides, journalists of the world’s great media outlets are paid not to say bad things about China — no matter what the nasty dragon has done.
China has invested heavily in African infrastructure projects over the past few years. More often than not, those projects were carried out by Chinese firms and staff. Sometimes China granted loans which were contingent on the fixed-price sale of natural resources. Experts have frequently branded such deals as being detrimental to the credit recipients.
It’s not that easy to find out exactly how much money the Chinese have pumped into Africa. This is because Beijing doesn’t transfer loans from banks or companies through any established channels such as the Creditor Reporting System, the OECD or the International Aid Transparency Initiative. In addition, Chinese banks are usually cagey about any credit agreement details. __ https://www.dw.com/en/chinas-loan-policy-under-scrutiny/a-47118123
China wins in these deals coming and going. Chinese companies earn profits by building the infrastructure, and the Chinese government wins valuable assets in the default and repossession process of collateral, when the third world nation cannot pay according to the small print on the bottom line.
Sri Lanka, Kenya, Zambia, Ethiopia, Pakistan, and More . . .
All of these countries and more are playing the losing game of borrowing large sums of money from China to pay Chinese firms to build expensive infrastructure projects. The deals seem to be win-win for China, and lose-lose for the third world governments that make the fateful decision.
This alarming news item reported from Delhi, India says ‘Kenya could lose its Mombasa Port to China along the lines of Hambantota Port in Sri Lanka and International airport in Zambia. Kenya had obtained a loan of US$ 2.2 billion for the construction of a railway track from Mombasa to Nairobi and has failed to pay back the loan, hence this action by China to take over Mombasa port. It is also reported that Zambia had surrendered its national airport to China as it failed to pay back the loan. ___ http://www.dailymirror.lk/article/has-Kenya-too-fallen-for-China-s-debt-trap–161176.html
If this were the US or UK stealing strategic land from corrupt third world nations, the uproar about neocolonialism would be heard from pole to pole. But since it is only China — land of poisoned air, water, food, soil, drugs, etc. — it is simply par for the course. China has corrupted national leaders, media corporations, multinational manufacturers, and other large economic interests around the world — teaching them to dance to the dragon’s tune.
Don’t think it is only Africa and south Asia getting picked apart. Putin has been dependent on China since 2014, being forced to pay back loans in kind. Several nations of Greece are falling into the same trap to varying degree.
Watch closely, pay close attention. These things are happening quickly, and if you are not careful China will own your house and your children before you sit down for breakfast tomorrow morning.
Being Dangerous also means thinking Dangerously, and watching things with an eye for the Dangerous. Be Ready.