China's Debt Trap | How & why a country falls into China trap? | Understand the chronology in 3 min! скачать в хорошем качестве

China's Debt Trap | How & why a country falls into China trap? | Understand the chronology in 3 min!

Creative team Graphic designer- Anmol Issar Camera & lighting- Hitesh Speed Video Editing- Purbashree Deka Today let’s try to understand the China’s debt trap. Why do countries take big loans from China? -Often countries get moved away by its dream infrastructure projects -it takes loan to show good gesture and faithfulness to a mighty country! -also China offers cheap loans to countries. Now How the countries get trapped in China’s loan? -China has got no problem in offering loan larger than the loan waiver countries economic which is certainly not facilitated by World Bank or IMF so it is obvious when a country takes loan more than its GDP it gradually falls under debt trap. How many countries are in the debt trap of China? — nearly 138 countries are under debt trap of China. Among this the top five countries with fragile economic condition under debt are are- 1rst Pakistan with $30 billion loan 2nd Maldives with $3.2 billion loan or you can say it’s 100% GDP is under China’s debt trap. 3rd is Sri Lanka with $5 billion loan 4th is Djibouti with $1.2 billion loan 5th is Montenegro with $794 Million Now let’s learn a fun fact -To built such infrastructural project for which China gives away huge loans China has It’s on OPEC terms and conditions in one of those is , 70% of the workers working in such projects will belong from China it self. Now it leaves the country with no hope of further employment generation through such projects. Now A serious question.. What happens when a country fails to pay its loan? —There are several concessions that China asked for in exchange for debt relief. Sri Lanka for instance was forced to hand over control of Hambantota port project to China for 99 years in lease. Since the port barely had shipping traffic that led to no income generation. Pakistan has more to loose though in coming time under CPEC but until now China took Gwadar port from Pakistan . A 165 km highway with imposing bridges And deep cut Tunnels for a small country like Montenegro with only 630,000 population takes huge loans from China & Project still remains incomplete. They claimed it to be the ‘pathway to modern world’ now rather it seems to be The pathway to the debt world’. China Maldives friendship bridge are to $225million project funded by China which puts Maldives stepped to GDP ratio at nearly 100%. In exchange of relief China constructed its first military base in Djibouti where as Angola is repaying multibillion dollar debt to China with crude oil creating major problem to its economy. China has been using its money as a tool to gain influence across the world & Further follow its expansionist policy. It’s a trap. But even after witnessing such debt trap many countries are yet not agreeing to stop taking loans from China as they might want to be close allies or gradually become part of Communist regime.