In an interview with the BBC, Richard Moore, the head of Britain's foreign intelligence agency MI6, said China uses what he called "debt traps" to gain leverage over other countries. It says: "There is not a single country that has fallen into [a] so-called 'debt trap' as a result of borrowing from China.". BUT it was visible to any intelligent human being since at least 15 years ago. People on the right of the ideological spectrum are more likely than those on the left to view the U.S. favorably, but there are no strong ideological patterns in views of China. proper attribution to Statista. January 02, 2022 06:30 AM. For instance, in Greece, 60% of those on the right have a favorable view of the U.S., compared with only 22% of those on the left. "Beijing uses its influence in Africa to gain preferential access to Africa's natural resources, open up markets for Chinese exports, and enlist African support for Chinese diplomatic priorities on and beyond the continent.". CHINA is "colonising" smaller countries by lending them massive amounts of money they can never repay, it's been claimed. "We hear from public officials in China all the time, saying 'Look, you're in the only game in town'," explains Brad Parks, executive director of AidData. What they are doing is really doing the CCP's PR towards African as well as western publics. In 2000, trade between China and Africa had been at a mere $11 billion. Speaking to the broadcaster in 2019, Defence Minister Ng Eng Hen said that he did not think an all-out confrontation involving Singapore will take place, explaining: All the parties involved recognize that the price is too high and the issues in the South China Sea do not warrant an actual physical confrontation.. Debtor countries themselves often do not collect data on debt owed by state-owned companies, which are the main recipients of Chinese loans. The BBC is not responsible for the content of external sites. 1615 L St. NW, Suite 800Washington, DC 20036USA Be it Ladakh or South China Sea, China seems to have been making unfounded claims in different parts of the world for a long time. It was heaven on earth. FILE - China Shipping Company containers are stacked at the Virginia International's terminal in Portsmouth, Va., May 10, 2019. A dozen of these countries owe debt of at least 20% of their nominal GDP to China (Djibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia, Niger, Laos, Zambia, Samoa, Vanuatu, and Mongolia). Just this week China was accused of encroaching on Nepals territory along the two countries shared border. China's presence and activities in Africa are not new. Its loans to lower and middle-income countries have tripled over the past decade, reaching $170bn . leaving Sri Lanka saddled with growing debts. Their presence is irritating and appears threatening to Japan, but foreign ships sailing within the contiguous zone is not a violation of international law. Video, 00:02:36, On board the worlds last surviving turntable ferry. China does not publish records of its foreign loans, and the majority of its contracts contain non-disclosure clauses which prevent borrowers from revealing their contents. Despite a booming technology sector, the sheer size of India's population means it has been struggling to create enough jobs to keep up with demand. 2023 BBC. Different G7 partners will have different geographic orientations, but the sum of the initiative will cover low- and middle-income countries across the world.". Currently, only 13 countries (plus the Vatican) recognise Taiwan as a sovereign country. This Pew Research Center analysis focuses on public opinion of the United States and China in 19 countries in North America, Europe, the Middle East and the Asia-Pacific region. China is lending differently: instead of financing projects by granting or loaning money from one state to another, almost all the money it's handing out is in the form of state banking loans. Countries can be difficult borrowers, Gelpern explains, and it's not practical to expect them to hand over a physical asset like a port if they're unable to pay their debts. Today, Chinese lending is substantial across the globe. A point to note about the Belt Road initiative by China is the debt trap it is leading nations into. Instead, its four focus areas are climate, health and health security, digital technology, and gender equity and equality. China is now Africa's largest trade partner. There are now more than 40 low and middle-income countries, according to AidData, whose debt exposure to Chinese lenders is more than 10% of the size of their annual economic output (GDP) as a result of this "hidden debt". In contrast to views of Chinas influence, more than half of the public in only one country Poland say U.S. influence is growing. In September, Radio Free Asia reported that residents of Myanmars northern Shan state had destroyed a fence built by Chinese authorities, claiming it encroaches on their countrys territory. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage. In June 2020, soldiers clashed in hand-to-hand combat as a border dispute threatened the uneasy truce between the worlds most populous nations. It is unclear why the report has not yet been published by the Nepalese government, the BBC said. That lending cycle ended badly once commodity prices and economic growth slumped, and dozens of developing countries went into default during the bust that followed. Taken individually, these "nations" would account for eight of the 20 most populous countries in the world. Weve also documented a recent surge in the number of credit events on Chinese loans, which have not appeared in the reports of international credit rating agencies. Their setup is closer to commercial loans concerning their conditions of repayment, confidentiality as well as their objectives of funding specific infrastructure projects instead of pursuing development goals in general. There's currently an initiative by G20 nations - those countries which have the largest and fastest-growing economies - to offer debt relief for poorer countries to help them deal with the impact of the pandemic. For generations I have heard in America that all of the problems in Africa are because of (white) colonialism. Laos has a 313-mile border with China that runs from the tripoint with Myanmar in the west to the tripoint with Vietnam in the east. AidData tallied underreported debt amounting to $385bn. Read about our approach to external linking. The AidData researchers - who have spent four years tracing all of China's global lending and spending - say that Chinese government ministries are regularly going to them for information on how Chinese money is being used overseas. At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China. Surveys were conducted face to face in Hungary, Poland and Israel and online in Australia. China continues to deepen its engagement in Africa on all levels. Djibouti, Laos, Zambia and Kyrgyzstan have debts to China equivalent to at least 20% of their annual GDP. This has led to its dispute with several countries, such as Taiwan, the Philippines, Indonesia, Vietnam, Japan, India, South Korea, North Korea, Singapore, Brunei, Nepal, Bhutan, Laos, Mongolia and Myanmar. According to World Bank data analyzed by Statista. The Statista "Chart of the Day", made available However, attitudes vary widely within the Asia-Pacific region. The area is also close to key shipping lanes and rich fishing grounds. "America cannot ignore Africa. In the border region, an uneasy alliance persists, ABC News reported in 2019. Also in March, Chinese President Xi Jinping had a phone conversation with South African President Cyril Ramaphosa, during which the two spoke about deepening cooperation between the two countries. Most of the line is owned by the Chinese-dominated railway group, but under the murky terms of the deal, the Laotian government is ultimately responsible for the railway's debt. India's population growth is slowing down. In each country surveyed, more than half of adults say Chinas influence in the world is strengthening. The Communist nation is known to have border disputes with as many as 18 countries. Evaluations of Americas global influence vary more widely. Another South China Sea dispute. The new intelligence suggests around 20,000 Russian soldiers have been killed in the . Taken together, young people in a few countries including Australia, Belgium, Canada, Sweden and the United Kingdom are both more positive toward China and less positive toward the U.S. than older adults. While Chinas role in global trade is highly publicized and politically polarizing, its growing influence in international finance has remained more obscure, mostly due to a lack of data and transparency. The details are given below: . China grows its military while we worry about diversity, inclusion and the proper fit of pregnancy uniforms. And all the Germans remained obediently silent, accepting their truth. A median of 66% across 19 countries say China's influence on the world stage is getting stronger, while just 32% say the same about the U.S. China lent nearly . world relating to economic and political issues as well as The country is accused of leveraging massive loans it holds over small states worldwide to snatch assets and increase its . A survey conducted by the U.N. in conjunction with this week's report found that many Indians listed economic issues as their top concern when thinking about population change, followed by worries about the environment, health and human rights. In 2018 alone, China acquired over 20 deep water and air ports from several countries around the world. The countries with the biggest debt burdens in relative terms were Djibouti and Angola, followed by the Maldives and Laos, which opened a debt-laden railway line to China last year. A market in Chennai, India, on Wednesday. 2023 Gatestone Institute. In Africa, which lags all other regions of the world in the availability of paved roads and electricity, that deficit is set to grow without a massive influx of hard infrastructure investment At current rates, the minimum deficit of the road network will be 60,000km by 2040 and an additional 30,000km gap for the rail network.". Also, working with Western official financiers is bureaucratic and subject to long delays.". Our leadership ignored this as if special raw materials scarce and extremely valuable necessary for next generation tech was not a national security issue thanks to the Clintons and Obama. Why does this matter? At a G7 meeting in June, the US and its allies announced the G7 adopts spending plan to rival China's influence, which promises to fund global infrastructure projects that are financially and environmentally sustainable. Trade between China and Africa has grown from $10 billion in 2000 to $190 billion by 2017. This problem is aggravated by the fact that many Chinese official loans have collateral clauses, so that China may be treated preferentially in case of repayment problems. From 2020 to 2021, trade between Africa and China reportedly increased by 35% . (Image source: U.S. Africa Command Public Relations). As early as the 1970s, countries began to claim islands and various . US-China Economic and Security Review Commission, 2020 annual report to Congress. Vietnam maintains its territorial claim over regions of the South China Sea and the Macclesfield Bank, Paracel Islands and the Spratly Islands. "I think our conclusion is that they were being muscular and sophisticated in these contracts. Creative writing classes for kids and teens Young Writers' Hangout on May 11, 18, 25 (1:30 pm-3pm; stand-alone sessions) at . Both countries face their own challenges. China's economic and diplomatic engagements allow it to buttress autocracies and change international norms in a patient effort to claim their second continent." Please limit comments to 300 words or less. "China is dependent on Africa for imports of fossil fuels and commodities Beijing has increased its control of African commodities through strategic direct investment in oil fields, mines, and production facilities, as well as through resource-backed loans that call for in-kind payments of commodities. "Beijing has long viewed African countries as occupying a central position in its efforts to increase China's global influence and revise the international order," the US-China Economic and Security Review Commission wrote in its 2020 Report to Congress. Commenters' email addresses will not be displayed publicly. North Korea has 127 and China 78, but due to the division criteria, some islands belong to North Korea even though they are on the Chinese side of the river. Malaysias foreign ministry said at the time that the manoeuvre was a serious threat to national sovereignty. As a result, nations facing financial strains can turn to China before the international financial institutions, including the IMF. China shares a contiguous border of 292 miles with Bhutan and territorial disputes have been a source of potential conflict. on two sectors: "Media and Technology", updated has called the level of debt many countries once again . That's because central government institutions aren't named in a lot of the deals struck by Chinese state banks, keeping such deals off government balance sheets and hidden by confidentiality clauses that can prevent governments from knowing exactly what has been agreed behind closed doors. Alexander Smith is a senior reporter forNBC News Digital based in London. (+1) 202-419-4300 | Main CORRECTION (Aug. 29, 2022): Due to an editing error, a previous version of the text mischaracterized favorable views of the U.S. in South Korea. This change does not substantively affect the findings in this analysis. They're not welcome in China though. Not too long ago China received foreign aid, but now the tables have turned. In the long run these Belt and Road debt traps created by the China CCP will backfire on China because the African nations will default on them just like they default on IMF and WB loans. The Times of India newspaper described this as "a ticking social bomb" in an editorial reacting to the population news. What's important is "to be seen as a developing, modern, and functional country.". restructured and largely forgiven after the turn of the millennium, Our infographics team prepares current information in a clear and understandable format, Relevant facts covering media, economy, e-commerce, and FMCG topics, Use our newsletter overview to manage the topics that you have subscribed to. The hostility, which triggered an angry protest from Manila, was the latest flare-up in the South China Sea, with China claiming virtually the entire waterway and transforming seven disputed shoals into missile-protected island bases. The pattern differs in Poland, also last surveyed in 2019, where the U.S. is now seen more favorably than three years ago (+12 points) while China is seen less favorably (-19 points). No part of the Gatestone website or any of its contents may be reproduced, copied or modified, without the prior written consent of Gatestone Institute. At around 4%, these loans are close to commercial market rates and about four times that of a typical loan from the World Bank or an individual country such as France or Germany. As has been shown in the Ukraine, Russia cannot successfully project military power outside its own borders. But the billion dollar project using loans and contractors from China became mired in controversy, and struggled to prove viable, leaving Sri Lanka saddled with growing debts. So who is really stuck in a debt trap? In November, Chinese vessels blocked and used water cannons on two Philippine supply boats that were heading to a disputed shoal occupied by Filipino marines in the South China Sea, The Guardian reported. The World Bank says that since May 2020, a total of more than $10.3bn has been delivered in debt relief by G20 countries under this scheme. To China, being the most populous nation "doesnt count for anything" in and of itself, he told NBC News in an email. Very good article. Islands and reefs: ~75,400 km 2. BRI aims to build an economic and infrastructure network connecting China with Europe, Africa and beyond, and has already strengthened China's global influence from East Asia to Europe by making countries worldwide increasingly dependent on China. The unreported lending from China has grown to more than $200 billion USD as of 2016. The decision followed a warning by Chinas ambassador to the US that the countries could descend into military conflict over the independence of the government in Taipei. Western workers should stay out of Africa, its too dangerous. And that's news even to Chinese officials themselves. It will be very near impossible for the US or others to catch up on that, especially with the planned B3W initiative, because that initiative is not focused on much-needed tangible investments. "I believe both India and China dont want conflict.". It is a subsidiary of The Pew Charitable Trusts. by John Richardson A twisting railway running between China and the neighbouring country of Laos is often touted as a prime example of China's off-the-books lending. China hands out at least twice as much development money as the US and other major powers, new evidence shows, with most of it coming in the form of risky high-interest loans from Chinese state banks. Chinese loans have higher interest rates than those from international institutions like the International Monetary Fund or The World Bank or bilateral loans from Paris Club countries, and also have shorter repayment windows.