look news india
According to a report, 97 countries of the world are indebted to China and through the Belt and Road Initiative, China has given loans to all these countries in the name of sea ports, railways and other infrastructure projects.
Talking about China's major debtor countries, China has given loans of $77.3 billion to Pakistan, $36.3 billion to Angola, $7.9 billion to Ethiopia, $7.4 billion to Kenya, and $6.8 billion to Sri Lanka. Also, the loans given by China to African countries Angola and Djibouti amount to 40 percent of the total national income of these countries.
Maldives and Laos have also borrowed from China. They owe 30 percent of China's gross national income. The new government of Maldives is taking more loans from China. In such a situation, Maldives is in danger of bankruptcy.
The main income of Maldives is tourism. Being a landlocked country, it has to depend on foreign countries for everything from food grains to medicines. The railway line built with Chinese loan in Laos has recently been inaugurated.
China claims to give loans to poor countries at very low interest rates, but China also puts strict conditions along with it. Due to which the sovereignty of the borrowing country is also threatened. China tricks such countries and takes strategic decisions from them which benefits China. The examples of Sri Lanka and Maldives are in front of the world.
Sri Lanka will have to lease Hambantota port to China for 99 years in exchange for the loan. Whereas China has taken an island near Maldives on a 50-year lease in exchange for a loan. China has taken over a wind power project in Laos.
China also has a track record of never forgiving its debt. Other rich countries of the world waive off loans in some cases after giving loans to other countries, but the case of China is different. If countries fail to repay the loans, China will restructure the debt. Therefore, the burden of interest and capital increases on those countries.
