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Chinese ‘debt trap’ fuels Sri Lanka, Pakistan crises

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Amidst current protests triggered by political skulduggery, the economic mismanagement by the incumbent governments in Sri Lanka and Pakistan is the less-talked, but real, Chinese “Debt Trap.”

The crises are undoubtedly fed by politicians trying to enrich themselves while sticking to power. But they get short term support from Chinese projects financed by the latter’s banking institutions that, when they add up and are not debt-serviced on time, become economic noose around the beneficiary’s neck.

It is the Belt and Road Initiative (BRI) in Sri Lanka where the government collapsed in the face of street protests caused by severe shortages of essential commodities. In Pakistan, it is the much-bigger China Pakistan Economic Corridor (CPEC) is infamously called the “Chinese East India Company”, a symbol of colonization. That voice, muted through media’s suppression, promises to return as Pakistan goes to the polls later this year.
While the CPEC’s working is bound to raise questions, China is about to extend it, or move separately, into the Taliban-ruled Afghanistan. Kabul, unrecognized by the world community and hit by economic sanctions, is desperate for funds and wants the Chinese to come and explore and exploit its huge copper reserves.

The list is growing of those ‘trapped’. Over forty countries have sorely felt the impact of the Chinese “good........

© The Times of Israel (Blogs)

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