China has found a new way to embrace the rebirth and assertive India. With adding to its military power the nation tries bigger impact in the ward. In the simplest way, China has the new super weapon against peaceful India and with the help of this weapon China will grab land in India’s neighboring countries.
Chinese President Xi Jinping’s mega Belt and Road Initiative plans to expand this weapon which examiners call “debt trap”.
Meanwhile, a recent report released by Center for Global Development, a think-tank based in Washington, D.C. has warned the country that debt traps created by China through Belt and Road Initiative would raise India’s political loss to deal with such nearby states.
According to Economic Times, think-tank’s report said, “eight countries including the Maldives, in India’s neighborhood, and , which hosts the lone Chinese military base overseas, are particularly at risk of debt distress based on an identified pipeline of project lending associated with BRI.”
China’s plan to seize land in smaller is quite simple, they think to get loans on high rates for infrastructural projects.
The report says about BRI’s debt traps would have the larger impact too and “BRI raises the risk of debt distress for 68 countries identified as potential borrowers if the programme follows Chinese practices for infrastructure financing, which often entail lending to sovereign borrowers.”
According to the report BRI is planning to cross at least 68 nations with a stated expense as high as $8 trillion for a vast network of transportation, energy and telecommunications base linking Europe, Africa, and Asia. However, it is also informed in a report that “the programme is an infrastructure financing initiative for a large part of the global economy that will also serve key economic, foreign policy and security objectives for the Chinese government.”
As per said by the report, “Yet, important questions arise on sustainable financing of the initiative within BRI countries, and how the Chinese government will position itself on debt sustainability… And when the creditor itself is a sovereign, or has official ties to a sovereign as do China’s policy banks—China Development Bank (CDB), the Export-Import Bank of China (China Exim Bank), and the Agricultural Development Bank of China (ADBC)—these challenges often affect the bilateral relationship between the two governments.”
Further added in the report, “It remains unclear the degree to which BRI, a Chinese-led bilateral initiative that seeks to employ some multilateral mechanisms to achieve its financing goals, will be guided by multilateral standards on debt sustainability.”