Those countries which are lending to China are being asked to be vigilant. Is debt from China really dangerous?
Former US Secretary of State Rex Tillerson said in March this year that countries which work together in the United States make those countries self-reliant while China relies on itself.
Tillerson said on his visit to Africa, “China is encouraging Africa to rely on itself. The countries whose countries lend to China are contracts opaque. That debt is destructive and promotes corrupt activities. ”
China, Pakistan, Sri Lanka, Laos, Djibouti, Maldives, Mongolia, Montenegro and Kyrgyzstan have also received outstanding loans.
Many economists across the world say that the way Hambantotaa port had to be handed over to Sri Lanka due to non-debt, so will the rest of the countries also have to do.
- These eight countries of the world under the influence of China
- Bharat-China bitter, how dangerous is the result?
- What is the Gwadar port project of Pak?
Four Chinese projects canceled by Malaysia
According to a report from Financial Services , Malaysia canceled four China-supported projects on Thursday. These four projects were worth $ 23 billion.
Along with this, Malaysia has also ordered the investigation of China’s role in corruption cases involving former Prime Minister Najib Razak.
These projects in China were planned to connect Malaysia’s eastern coastal rail link to southern Thailand and Kuala Lumpur. Apart from this, there were two pipeline projects. In these projects, China had to pay 85 percent of the amount.
Following the defeat of Najib Razak and the command of Malaysia at the hands of Mahatir Mohammed, there has been a radical shift in relations between Malaysia and China.
Mahatir Mohammed is called anti-China Knowledgeable people are telling the change of power in Malaysia behind the cancellation of these projects in China.
- The fear that Nepal does not openly come with China
- Due to China, the Pakistani army was wek or weak?
Is the new government in Malaysia anti-China?
In an interview published on June 20 in the South China Morning Post , Mahatir Mohammed was questioned whether he is anti-China?
In response to this question, Mahatir Mohammed had said, “There have been many such things which are not in Malaysia’s right. We welcome foreign investment. Of course, Chinese investment is also welcome. The issue is that when there is a compromise with China, there is a fear of suppressing a huge debt.
“When China gets more money then that project also goes to China. Chinese contractor workers also keep their own All equipment has to be imported from China. Even the payment does not happen in Malaysia. In such a situation, we do not get anything. We will not accept such investments. ”
Explaining the Chinese investment in this interview, Mahatir said, “They will make the whole city according to their own accord. Of course things will be expensive and Malaysians will be unable to buy. In these cities our people will be rather foreigners. ”
“We also do not want any other country to buy a large part of the land in Malaysia and create an ambitious type of city for the foreigners. I am completely against it. This will not allow countries like Arab countries, India and Europe. ”
Nepal also fears
Similar thing is being said about Nepal. China is going to work on the railway project for Nepal. China will link from western Tibet to Nepal. Last month, Nepali Prime Minister KP Sharma Oli had gone to China.
China has agreed to link Tibet and Nepal to the railway line, according to one report of China Daily. This railway line from Tibet will go to Kathmandu, the capital of Nepal.
Many analysts believe that China’s money in this project will be so much that Nepal will not be able to move the contract accordingly, and eventually Nepal will be under the burden of Chinese debt.
Myanmar will also give China project small
The fear of Chinese debt is also harboring Myanmar. Myanmar’s Finance and Planning Minister Sou Win said in an interview to the Nikkei Asian Review on Tuesday that China will cut its size in the special economic zone that is making its country.
He said that he has got a lesson from neighboring countries that more debt is not good at times.
China is going to create a special economic zone in Kaykupu, Myanmar. It is in the Indian Ocean and has a $ 10 billion project. This project is part of China’s One Belt One Road.
In 2015, China’s government investment company got the contract to develop a SEZ in the Taunain province of Myanmar. This special economic zone is to connect the oil and natural gas pipeline to the Chinese province of Yunnan.
Along with this there is also a matter of making a huge port and it is to construct an industrial park in 1000 hectares nearby.
Myanmar is feeling that its condition may not be like Sri Lanka. Sow Win said that their aim is to make good revenue. He said that at the end of the loan he has to repay the unnecessary expenses.
By the end of 2017, foreign debt on Myanmar was $ 9.6 billion. 40 of these loans are from China. Soi said that 40 percent of any one country loan is not good for any reason.
In December of 2017, there was a consensus between the State Councilor Aung San Suu Kyi and Chinese President Xi Jinping between the Myanmar-China Economic Corridor. This includes railways and road construction. Although Myanmar feared that he would not get entangled in the debt trap.
Panic in Pakistan
About Pakistan, it is being said that despite the pressure, contracts of the Gwadar Port project have not been made public. Analysts believe that a large part of this money is in debt.
There is also a fear in Pakistan that on the way to Sri Lankan Hambantota, he has not yet given ownership of other properties including Gwadar to China. There is a 40-year agreement with Gwadar for investment partnership and control over it.
China will have 91 percent of its revenues and Gwadar Authority port will get only 9 percent. Of course, indirectly, Pakistan will not have control over Gwadar for 40 years.