China colonising smaller countries by lending them massive amounts of money they can never repay

https://www.thesun.co.uk/news/7037663/china-colonising-smaller-countries-by-lending-them-massive-amounts-of-money-they-can-never-repay-in-bid-for-world-domination/amp/

CHINA is “colonising” smaller countries by lending them massive amounts of money they can never repay, it’s been claimed.

The country is accused of leveraging massive loans it holds over small states worldwide to snatch assets and increase its military footprint.

Developing countries from Pakistan to Djibouti, the Maldives to Fiji, all owe huge amounts to China.

Already there are examples of defaulters being pressured into surrendering control of assets or allowing military bases on their land.

Some are calling it “debt-trap diplomacy” or “debt colonialism” – offering enticing loans to countries unable to repay, and then demanding concessions when they default.

Sri Lanka provided a prime example last year.

Owing more than $1billion (£786million) in debts to China, Sri Lanka handed over a port to companies owned by the Chinese government on a 99-year lease.

And Djibouti, home to the US military’s main base in Africa, also looks likely to cede control of a port terminal to a Beijing-linked firm.

America is eager to stop the Doraleh Container Terminal falling into Chinese hands, particularly because it sits next to China’s only overseas military base.

Last March ex-Secretary of State Rex Tillerson said Beijing encouraged “dependency using opaque contracts, predatory loan practices, and corrupt deals that mire nations in debt and undercut their sovereignty”.

A report from The Center for Global Development offers some insight into the spreading China debt.

It shows how infrastructure project loans to the likes of Mongolia, Montenegro and Laos have resulted in millions or even billions in debts, which often account for huge percentages of the countries’ GDPs.

Many of these projects are linked to the “Belt and Road” initiative – a bold project to create trade routes through huge swathes of Eurasia, with China at the centre.

Participating countries often undertake work on roads and ports with part-funding from China.

More recently, China’s debt empire has been rearing its head in the Pacific, prompting fears the country intends to leverage the debt to expand its military footprint into the South Pacific.

Beijing’s creation of man-made islands in the disputed South China Sea for use as military bases suggests the concern may be warranted.

————

a step ahead of the curve..this is the global game pan for china..expect to see a lot of this..especially to third world countries..

“Some are calling it “debt-trap diplomacy” or “debt colonialism” – offering enticing loans to countries unable to repay, and then demanding concessions when they default.”

401

~ by seeker401 on September 25, 2018.

22 Responses to “China colonising smaller countries by lending them massive amounts of money they can never repay”

  1. This is huge. All that money China had. The empty cities and large inflationary rates to prop up their GDP all those decades. They found places to expand their inflation, disperse, and decrease its’ inflationary pressures. New geography, whether virtual (hedge funds, crypo’s, pharmaceuticals, CDO’s, surveillance tech) or own real, i.e. land in other countries, this puts the large amounts of currency China prints into economic factors to keep their inflationary rates lower. It is how the U.S. did (still does) mainly through the military industrial complex, pharmaceuticals, housing, etc. The IMF does this to countries all the time through loans. China is now doing it on a much larger scale possibly; China is straight-up just loaning and then confiscating property globally.

  2. Congress set to pass foreign development aid overhaul

    BY SYLVAN LANE – 09/24/18

    Congress is expected to pass this week a bipartisan overhaul of the federal government’s development aid agency through crucial funding legislation due before the end of the month.

    The House is slated to vote Tuesday on a bill to expand the types and amount of financial aid the U.S. government can provide for economic development projects in poorer nations. The measure is included in a bill to fund the Federal Aviation Administration (FAA) unveiled Friday by bipartisan House and Senate leaders.

    Funding for the FAA expires on Sept. 30, and lawmakers are eager to avoid a shutdown at the agency or pass a stop-gap spending bill. The bill is expected to pass the House easily on Tuesday and clear the Senate by the end of the week.

    the White House and the bill’s supporters say the new agency would play a crucial role in curbing China’s efforts to expand its influence and acquire strategic ports and infrastructure centers near the U.S.

    The development aid overhaul, known as the BUILD Act, would consolidate two foreign aid agencies into a new entity with broader and deeper financing power. The new agency would focus on projects that boost local economies in volatile regions, primarily targeting Central America, Africa and Southeast Asia.

    The bill would create a new U.S. International Development Finance Corporation (IDFC) to replace the Overseas Private Investment Corporation (OPIC), which invests in and draws private capital to international development projects meant to advance U.S. interests.

    OPIC would be combined with several funds at the U.S. Agency for International Development that now support projects meant to boost economic growth in poor countries.

    The new IDFC would be allowed to provide up to $60 billion in financing through a seven-year authorization and a new suite of financial tools to support power plants, ports and other infrastructure. While OPIC can only offer loans and political risk insurance, the IDFC could acquire equity in projects to help support them.
    https://thehill.com/policy/finance/408119-congress-set-to-pass-foreign-development-aid-overhaul

  3. India is in talks with the U.S. government’s international finance development agency, the Overseas Private Investment Corporation, to partner with Washington’s global infrastructure initiative
    Sept 25, 2018
    https://worldview.stratfor.com/situation-report/us-india-talks-join-development-initiative

  4. https://www.washingtonpost.com/opinions/the-us-can-counter-chinas-belt-and-road-initiative/2018/09/04/533661d0-ad57-11e8-9a7d-cd30504ff902_story.html?noredirect=on&utm_term=.6d522498b2b0

    • wapo wont let me look unless i subscribe and that wont be happening!

      • The Aug. 31 editorial “China’s version of colonialism” was right that the United States needs to be actively promoting a “real alternative” to the Chinese state-directed model that can leave developing countries worse off. Fortunately, the Trump administration is actively working with Congress on a proposal that would do just that.

        Now making its way through Congress, the bipartisan Build Act would reform, modernize and consolidate the development finance capabilities of the U.S. government, including the Overseas Private Investment Corporation. As with OPIC, this new institution would advance private-sector-led development, resulting in projects that adhere to high standards and are financially viable over the long haul. But unlike with the Chinese model, contracts are transparent, governments aren’t loaded with debt they cannot pay and local workers are hired. If passed, the legislation would help countries sidestep debt traps being laid by Beijing throughout the developing world and help more American businesses invest in emerging markets, including many places that are of key strategic importance to the United States.

        have to love the picture of a Chinese woman walking by GOOGLE

        lol reminds me of the ENRON sign years ago you know which one I mean I’m sure from R days
        GOOGLE must be the new ENRON!

      • Isn’t it odd that both pictures of the signs have a woman walking to the right of them?

  5. Healthcare PE Quadria Capital gets $150m commitment from OPIC for latest fund

    https://www.dealstreetasia.com/stories/quadria-capital-opic-funding-106843/

  6. Sounds like the world powers are all taking turns in the Power Africa deal, as Russia and the U.S. have in Afghanistan, in nation building for China’s Silk Road! Globalization is obviously costlier than they thought, and building Africa’s infrastructure AND educating them to be the next cheap labor is costing more and taking more time than they thought. Maybe that’s why they’re partnering up with Georgia?
    Trump did ask during his election regarding immigrants, ‘what’s wrong with Europeans’? Russians students from the Georgia Diaspora seem to be in New York, being educated in the STEM careers.
    The Build Act seems to be for foreign countries and not for Making America Great Again, but instead, Making America’s Corporations Richer

    SEPTEMBER 25, 2018 AT 8:10 PM
    https://www.brookings.edu/blog/africa-in-focus/2018/09/01/figure-of-the-week-new-us-investments-in-kenya/

    Ray Washburne of Overseas Private Investment Corporation (seated on the left) and Kenneth Namunje of Kipeto Energy sign an agreement to promote food security, on August 27, 2018. Standing behind them are Treasury Cabinet Secretary Henry Rotich (left), US Secretary of Commerce Wilbur Ross (centre) and President Uhuru Kenyatta
    President Uhuru Kenyatta on Monday urged the US government to facilitate the operation of US businesses Africa.

    The Overseas Private Investment Corporation (Opic) and Kipeto Wind Energy Company signed documents to close a $232 million deal in financing the construction and operation of a 100-megawatt grid-connected wind power plant south of Nairobi.

    The plant will provide a more reliable source of energy to the national grid and support the US Power Africa Initiative to double the number of people in Sub-Saharan Africa with access to electricity.
    https://www.nation.co.ke/news/world/Kenya-inks-Sh23bn-deals-with-US-firm/1068-4731594-rhrhy0z/index.html

    HGC owner and GCX bidder raises $7bn for more infrastructure investments
    According to an Infrastructure Investor report seen by Capacity, ISQ raised a $3 billion infrastructure fund in 2015 and later that year it added $200 million from the US government’s Overseas Private Investment Corporation. This means that, with the new $7 billion raised through its ISQ Global Infrastructure Fund II, it has expanded considerably in size. The company says it has $13 billion worth of assets under management.

    https://www.capacitymedia.com/articles/3822328/hgc-owner-and-gcx-bidder-raises-7bn-for-more-infrastructure-investments

    PM Bakhtadze leaves for US with several high level meetings ahead
    (Georgia PM)
    He will be hosted by the National Security Advisor to the US President John R. Bolton at the White House.

    Another meeting with the Secretary of State Mike Pompeo will be held on September 20.

    Several meetings with US senators are also planned during the visit. PM Bakhtadze plans to meet with the Administrator of USAID Mark Green, the President of the Overseas Private Investment Corporation (OPIC) Ray Washburne, the World Bank President Jim Yong Kim and IMF Managing Director Christine Lagarde.
    Meetings with the US business representatives, the Georgian diaspora and students living in New York are also planned during the PM’s visit to the US.
    http://agenda.ge/en/news/2018/1936

    US Millennium Challenge Corporation deems relations with Georgia excellent
    Agenda.ge, 25 Sep 2018 – 12:06, Tbilisi,Georgia
    The Millennium Challenge Corporation (MCC), an independent US government foreign aid agency, has deemed its cooperation with the Georgian government ‘excellent’ and welcomed the successful implementation of the second compact.

    The second compact of MCC to the amount of 140 million USD includes general, vocational and higher education projects aimed at developing human capital in the fields of engineering, technology and the natural sciences.
    http://agenda.ge/en/news/2018/1997

  7. https://patch.com/illinois/chicago/chinese-spy-arrested-chicago-u-s-justice-department
    “A Chinese national has been arrested on suspicion of spying on the United States for China, according to a press release from the U.S. Attorney’s office. Ji Chaoqun, 27, was living in Chicago while working as an agent for a Chinese intelligence agencies, the government says.”

  8. Bit like the IMF then

    Sent from my iPhone

  9. Seeker long time no speak…

    This is no different to what the ECB have deliberately being doing to the PIIGS in Europe via the big German and French banks (and to some degree UK & US banks)

    You might want to watch this

    It’s a interesting tale about excess how credit creation can be used to synthesis / induce change in a country via monetary policy (which when used in this way always supersedes the power of fiscal policy)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: