In Debt To China, What If Countries Can’t Pay Up?
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- čas přidán 26. 08. 2020
- President Xi Jinping’s Belt and Road initiative (BRI), also known as the ‘One Belt One Road’ initiative is seen as a transformative global trade network, reconnecting places along the historic Silk Road trade route with new ports, highways and railroads. China has since guaranteed concessional loans to finance constructions in the China-Pakistan Economic Corridor (CPEC) and in Sri Lanka’s Hambantota Port. But the #COVID19 pandemic has affected these developing countries’ ability to service its debts.
Experts worry that the Belt and Road initiative is laying a debt trap for borrowing governments and in turn, causing a huge debt burden for China.
Will the Belt and Road initiative be able to come to fruition given the current economic climate?
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Actually "Belt and road" is an initiative to belt the Pakistan on road...
😂
Lol
@Jay Lee Calm down and have some bat soup
@Jay Lee its good you know word called 'Protest"
LOL
I bring my companies. I bring my workers. I bring material. I build the road. You pay me back for ever. I sell my products to every country using your roads. You watch like stupid and keep paying interest for your roads that I use.
If this project is as good as you describe, us and Europe should have done it already. No chance for China!
Better get your poor selves few toilets 😂
@@arminius6506 bhai ki tarh samjha rhe hai,samajh jao,tumhari bhalai ki baat bata rhe hai
@@arminius6506 jitne pakistani nhi h pakistan m usse jyada toilets h India m
But you still have a road at a cheap price?
This is "Can't Pay, We Will Take Away" country edition in the making.
@John Smith i hope you are being sarcastic. It isn't just poor countries because the United States owe the most $ to China and it has gotten so big that economists no longer believe can over pay back. What happens when a small country becomes drowned in debt owe to communist China? It belongs to the debtors!
@John Smith you are delusional if you believe there are no consequences of a country filing for bankruptcy. In some cases, the country had to become a colony to the debtor for as long as 99 years and the debt was only billions. The United States' debt are in 10s of Trillions and if you are the debtor, would you simply agree to allow bankruptcy to ripe away all your trillion dollar asset?
@John Smith it's like the game Monopoly. If you have to give up your best property to your opponent, you already lost. For this amount of debt, it is going to be a long long lease as well.
借钱是你情我愿的事情，又没有人逼着那些人去借钱#狗头
@@bingxia6502 you are right on that but it was government who made that decision, not the people. So the government is the trash. People like me who is good at living below the means instead of living on credit are often screwed by the government.
Lose your territory if you can't repay. Simple
China soon end like Germany
Yeah and this is why i keep one foot in canada at all times. Just in case they annex my country.
Iraq is a sample of the USD manipulated. For example in Saddam era 1 dinar = USD 3.2. If Iraq has foreign debt of USD 1 million, it worth only 300k dinar. But after Saddam was hung, 1 USD = 1100 dinar. Hence Iraq debt went to USD 1 million x 1100 dinar = 1.1 billion dinar. That debt has increased over 1100 times. So Debt trap is less dangerous than manipulated USD
Lease not lose
china has border problems with every country and has invaded some too ,you all just dont know cuz u see GT sharing beautiful pics on FB Lmao
First time seeing someone wanting to become a colony of other country😂😂😂😂😂 pakistan 😂😂😂😂
@Wasaim Ali www.theguardian.com/global-development/2018/mar/07/india-girls-women-trafficked-brides-sexual-domestic-slavery 🧕🧕😍🥰😘😘😘😋
bhikari hindustan ke supply randi world ke mandi/randi😂🤣 #indkmkb
@General Porus the Great 😂vo sab to thek pr a north east india aranchal asames sikkim ladkhes nayi peedhi choti aakhon wali niknla wale bace deti ha made in ccp made in china ya link dekh lae agr zoot bol raha hoo to😂#indkmkb
www.india.com/viral/we-are-indians-not-chinese-northeast-students-request-people-not-to-call-them-coronavirus-watch-3972722/
Laos Sri Lanka Maldives Nepal Iran many countries in south Africa also
@John Smith even india has nukes what is difference...
Tab maza aye ga jab Pakistan ek economic door ho ga aur India ek xtra randi😂😂😂😂😂😂😂😂😂😂😂😂
If you sell your soul to the devil...be prepared for the consequences.
Burma is not a part of India, so why would India help them to make roads and help locals. India doesn't help and don't hinder in any other country's growth. China is helping them to get something out of them, fact. Use your brain.
Terence, you didn't understand the video. The "debt trap" was for 2.34% interest with 20 year term. Do you understand what that means? Additionally, China only owned 20% of the loan which means others owned 80%. I am well aware of what happened in Sri Lanka. The 80% of the loan was originated from western government/banks and average of 6%. Sri Lanka asked to lowered these interest rates like that of China, but that was denied. Why? because at 2.34%, inflation will eat up the interest rate. So basically getting almost interest free loan. You really missed the point.
Consequences such as having port and railway?
@Sachinraddy Bappasairailway, port is not going anywhere, the government still collect tax from the port. Not as good as owning the port , but still better than no port
@Sachinraddy Bappasai state coffee of course, to ask your finance minister how they spend it
Imran khan watching on icognito🤣
😂😂
He can't even do anything about it 🤣🤣
Gay hind loray mathram
Bharat mata ki gand ma lora
@@rohailkhan4826 ur kinda people from both sides are the reason for the toxicity
@@riteshpradhan6737 Ha aur jo tunay comment kia wo aman ki asha hai na
uh oh,, i smell my country : Indonesia.. 🤔🤔🙂
Your country rich so dont worry ok.
Joko Widodo is 👍
the chinese fast train project in Indonesia is being postponed due to several factors.
@John Smith Pakistan is even poorer that India lmao India gdp per capita 2300 Pakistan gdp per capita 1300, Karachi gdp per capita 2100 Mumbai gdp per capita 9000
@John Smith it not investment it's "debt" "karza"
Chinese investment, Chinese components, Chinese labours, Chinese engineers at the end if you are unable to pay the debt then Chinese ownership.😏
ah it basically applies to everything you are indebt with. go get a car loan or housing loan, what happens if you cant pay it? yeah it can be repossessed
@@ealicer81 yeah you're right. So I realized I need to edit my comment.
So now when a bank gives loans to build house it doesn't say buy my cement, components etc
@@bootup856 yes the banks doesn't say buy from them but it you will look at every company where you buy your materials, they too are connected to a certain bank
western bank loan let the local politician corrupted the money, then can't pay?? even worst not even got infrastructure but loan need to pay ?? repeat again more money ??!! at then end indirectly just like colonial, western country own the country who borrow the money??!!
@JarJarBinks well I think the project was over priced Kenya did need that rail as it made goods to cities on the route 50% cheaper and it cut travel times from Mombasa and Nairobi by half. But the project is supposed to connect Uganda to so that's that. But the China do have some successes and true win-win situations like in Ethiopia with economy booming even now during the pandemic is the third fastest growing economy right now with 3% increase.
China is financing projects that the USA or the EU would not. It is up to the countries that are negotiating these loans to ensure that they have the ability to repay them. China would have done their own assessment, but in the end the old saying " Let the buyer beware" applies to any commercial transaction. If it becomes a death trap, they walked into it with their eyes closed.
The problem is good accountability within nations that took debt. Corrupt governments will mismanage it, no matter where the money come from.
Of course it's not easy for underpaid government officials to resist temptations whenever they see money for the projects...
Can these countries indebted to China just say "cancel my debt for bringing covid to my country?"
…just pay the debt…covid is a compliment 🥱
So should these countries also ask India the same question for making COVID 100 times worse by creating the Delta variant?
@@et683 yes
@paper plane The original strain was created by nature and the outbreak started in China. Furthermore, scientists have found earlier generations of the virus in Italy and America, meaning that the first generation was not originated from China. China made the decisive actions to contain the virus while India’s arrogance and stupidity in managing the pandemic had made the 10 times worse DELTA variant and has infected more than 100 times more people than the first variant that was found in China. So, should the world make India pay for their stupidity?
@Abhimanyu Gaikwad Yes it's for sure, but it was "encouraged" by the slack pandemic policies of Modi when he announced victory over the pandemic prematurely and lifted all the measured from the country. That was the time the virus spread like a wild fire and the Delta variant was evolved.
The “debt-trap” theory is concocted by Brahma Chellaney, an Indian geopolitical strategist. The “debt-trap” theory is concocted by Indians, and popularized by Americans. They concoct this theory to demonize China, Chinese and BRI projects/loans. India, US, along with EU, fear losing their control over other countries which may result from these projects. Such fears are based on their selfish and geopolitical interests. However, people from all over the world, especially from developing countries have acknowledged the needs and the actual benefits of these projects/loans. They know from their first-hand experience that there is no debt-trap. Academics and researchers have reviewed these projects, and have debunked the debt-trap theory.
China has all these countries under their belt quite literally with the current problem of covid 19.
no, china took a break for covid
Get ready for an economic collapse lol
Isn't it strange that the bigger n developed countries like US has the worst problem of covid 19. They US were so confident that they didn't expect it to boomerang back to them.
I can’t see it as a debt trap, it’s just a different contract from the IMF
Iraq is a sample of the USD manipulated. For example in Saddam era 1 dinar = USD 3.2. If Iraq has foreign debt of USD 1 million, it worth only 300k dinar. But after Saddam was hung, 1 USD = 1100 dinar. Hence Iraq debt went to USD 1 million x 1100 dinar = 1.1 billion dinar. That debt has increased over 1100 times. So Debt trap is less dangerous than manipulated USD
🤣🤣🤣🤣🤣
Don't you know what happened with Sri Lanka.?
@@ameyb9241 sure, so to start off china didn't hold a gun to the presidents head and forced him to borrow money, the terms and conditions were clear. Basically if you cant pay it back, China would take something from the country (asset) worth of equal weight. You could borrow from the other side of the world and if you cant pay it back they will insert their own people into your central bank and control the whole country from the background. So is it a debt trap? When you lay out all the terms and conditions and you can decide to take the debt or not wouldn't be called a debt trap its just a different contract
@@felixfrost1564 Yeah I agree that Sri Lanka was foolish enough not to realise the consequences if they couldn't pay back. But it all comes down the motives of China. They KNEW Sri Lanka couldn't pay back and hence deliberately pushed and bribed Lankan officials to get loans cuz all they wanted was a port giving them access to Indian Ocean. So in a way it's a debt-trap cuz it's so visible that smaller nations can't pay back such hefty loans.
Bangladesh realised this from Lanka's example and hence backed off.
how is it different from what the WB and IMF is doing?
Yeah I can see private companies stealing resource I think countries need plan make sure to pay back loan
The difference with loans fro the World Bank and IMF is that these loans do not come with conditions attached, no new laws required to be made by your government, no policy changes required by your government and no free and easy access of Giant American companies required in your country. They will use your local workers, but if your local workers are not able to meet the requirements they will bring in the Chinese workers for these projects so that the projects will complete on time without delays and penalties for these delays.
WB and IMF doings is loan $ to you and you’re managing and controlling your project, China Communist Party is loan $ to you but Chinese or local Chinese pupil manages that project.., it’s a scam.
Everyone laughed at India when it refused to be a part of this... Who's laughing now (censored curse word in Hindi)?
Exactly. Thank god 🙏
How can India be part of something that cuts through China held Indian territory.
Me after 100 other bank disapproved my loan request..
bank: thank you sir, your loan has been approved.
me: its a trap! The interest too low, its too good to be true, even all the other bank disapprove our request. We shouldnt take it, lets just give it up and do nothing.
They give them all this money that they can never payback to them so then they take it over
This was planned decades ago.
Just like imf
@@asuralee2285 nope
They don't dare to show Africa.
P O O R
Africa is not poor. They own 270 billion and can't service the interest on that debt, yes. When you factor in 970 billion a year in Illegal Flight Capital leaves Africa through the British Virgin Isles, US Virgin Isles, and Gibraltar every year, you suddenly realize that they could pay off all their debt just preventing 1/4 of one years theft of flight capital.
What makes you think they didn't dare to show Africa? Can it mean that Africa is doing well, therefore, there is no need to mention? Why are you so pessimistic?
Don't fall for this Commie argument. The most common tactic the Commie did is put a scenario of the worst such as "China did not bomb Africa" etc. The next step, then put up some Western countries on that shoes. Thirdly, put China out as the saviour nod the World. Or at least a more equitable business partner. Standard method, creating a hellish scenario, and putting China scam in comparison, makes it more palatable.
@Eduard Kung You're correct. And they build factories, industrial parks, mining and logging centers staffing them with CHINESE workers. Why not African workers? There is method behind all of this -- and anyone with eyes to see can figure out what this is going to lead to, eventually: The sell-out of Sub-Saharan Africa to China.
Be careful when you make deals with the devil
You are right, no one wants to do business with you
Nice try wumao
for thousand years china neighbours with south east Asia but had never conquer or colonized them? look at Spain, Portugese, States, Dutch France etc. From all the way ten thousand km they just colonized malaysia, indonesia, vietnam so on and so forth, so why western country become rich country bcoz they steal from us for more than hundred year ??!! Time speak by itself ??!! so who is the devil??!!
Berg Jansen lol, questionable links and sources.
Just like the West lie about 1 million Uyghur (taken by asking 8 people to estimate)
www.google.co.id/amp/s/thegrayzone.com/2019/12/21/china-detaining-millions-uyghurs-problems-claims-us-ngo-researcher/amp/
The us drop almost 26000 bombs in other countries in 2016, while China drop 0
www.google.co.id/amp/s/amp.theguardian.com/commentisfree/2017/jan/09/america-dropped-26171-bombs-2016-obama-legacy
The EU condemn Hongkong police brutality and crackdown on pro-independent movement? Why are they muted on US police brutality that kills many minorities and why are they muted on the Catalonian leaders that are being drag to prison? There, hipocracy and imperialism at its best.
For everything that The west accuse China is doing, they are doing it themselves and sometime much worst. Don’t be a sheep to just follow the mainstream media narrative that are mostly pro west (propaganda tools of the west) have some critical thinking, do proper research, and you will start to see that perhaps the evils of our world are those that market themselves as the saviours.
@@mickdea6391 You're a wumao?
People don't like hearing the truth. Keep going CNA ! Admire your courage.
F*cking bots
This is the deal... many countries are aware that they will pay back the loan via land and/or port leases... there is nothing wrong with such a deal unless the deal is too much in favor of one country. 💡
And it is always too much in favor to China. And always against the poorer country, whom usually has a dictator leader whose family benefits but his people doesn't.
Sea level rising then how? So what land u talking about?
The side with the money can always ask for favorable terms. Ask any private equity investment managers that invest in struggling companies. When Warren Buffet invest billions into Bank of America after the financial crisis and were given preferred stocks and option to exercise additional stock purchase at a defined price hence making a huge profit later on. Was that favorable for Bank of America?. No, but they needed cash infusion. Ask yourself, would you invest in a friends struggling business if you didnt have terms spelled out in your favor. Shark tank is a perfect example. This is business. Not a you hold my hand, I hold your hand, discussion. Dont cry foul after the fact. Terms are spelled out and nobody forced you to sign. It is only in your favor when there are many countries are bidding to develop and invest. Sorry, but no other countries would even consider throwing a penny into these struggling countries and now wants criticize China? Oh, the irony.
@PRIME PATRIOT 14 It is not a China style. It is a general business style. If you run a business, then you will understand. This is not a NGO. People stay up day and night thinking of ways on how to increase their profit and protect their interest. Speaking of debt trap, commercial mortgage is a perfect example, they get denied by major banks but gets approve by private lenders with higher rates and additional non-conforming collaterals, and immediate partial payments if market value drops. That is just protecting the interest of the investment. Of course, I dont doubt there are corrupt activities, but that is common in every day business practices and we see it in city and government contracts all the time. There is no perfect scenario.
That means China just became a colonial power.
Suddenly giving debts to poor countries has become a bad habit for Western Imperialists
John Smith good point but most projects in Pakistan are necessities, the cpec doesn’t have many white elephants.
@St. Andrew Iraq is a sample of the USD manipulated. For example in Saddam era 1 dinar = USD 3.2. If Iraq has foreign debt of USD 1 million, it worth only 300k dinar. But after Saddam was hung, 1 USD = 1100 dinar. Hence Iraq debt went to USD 1 million x 1100 dinar = 1.1 billion dinar. That debt has increased over 1100 times. So Debt trap is less dangerous than manipulated USD
And what happens when these poor countries can not pay China back,they will take over their country,
Imf ke pas phiri muh kyu le kar aa jate ho re ki humlog ko loan chaiya
Jao china ke pas phir
@@Melissa-zy6qi It is a currency risk.
This happens when you borrow in a foreign currency and have a weak economy.
Swiss franc: www.nytimes.com/2015/01/29/business/international/polish-homeowners-feel-the-weight-of-a-heftier-swiss-franc.html
www.npr.org/2012/01/31/146140750/for-hungarian-borrowers-a-mortgage-nightmare?t=1598970179707
If BRI is debt traps, the same can be apply to all forms of financial loan! It's not the debtor's duty to ensure the debtee ability to pay back its debt! You think China don't have any losses to bear after taking over the Sri Lanka port?
" It's not debtors duty to ensure the detee ability to pay back it's debt" r u serious 🙄
Everyone checks such things before lending
China just want to use those to expand its military.....like he did in poor Sri Lanka
China did not take over the Sri Lanka's port. The Chinese is managing the port, not taking over.
Ever heard of responsible lending criteria ? Every responsible lender needs to ensure the borrowing party's capacity to pay is at par with the amounts being borrowed.
@@Monkey341 Income and profit go to China. :)
What happens when you bought a house, the loss the ability to pay your mortgage!
They say forgiveness, but I see other countries land being taken..
China has successfully completed thousands of projects in 129 different countries under the BRI initiative .
Out of those , just 1 (Sri Lanka Port) went bankrupt and western media started claiming that the whole scheme is debt trap diplomacy . What a joke .
@John Smith so what if pakistan has nukes? It's still broke and a vassal state of china. Pakistan call themselves leaders of the Islamic world but kiss china ass when it comes to the Uighurs.
@John Smith so it's ok if only a "few" are sold.
@John Smith by the way how much money did you get from CCP, to post comments like sweet, but in reality its bitter man
China is trusted ally......joke of the year😂😂😂
It is, unlike India that is an enemy to all her neighbours.
It sounds nice until you realize most of the Chinese built infrastructure will just collapse anyway. Given what they’re doing back home, it’s not far fetched to think that they will be even more careless in Africa.
Haven't you heard the collapse of the 55 stories residential building in Miami USA? I'm sure there are buildings and bridges that has collapsed in your country as well, and in terms of percentage of failed structures, China is definitely better than most countries. So your statement doesn't seem to be a well educated or researched one.
@@et683 yeah but one isolated case doesn't prove to dozens of cases of bad Chinese infrastructure recorded ON CAMERA.
@@orecreeper2128 Here is the official record of all the bridges that has collapsed in the world. China is no where near the top of the list:
en.wikipedia.org/wiki/List_of_bridge_failures
@@orecreeper2128 If you just search for incidents that happened in China, of course you'll find a few, but I think it's only fair that you also search for the numbers in the US that has a similar number of bridges built.
@@et683 show me then lol
Honestly i don't mind. There are plenty of chinese factories in my town and the govt. plan to invite more chinese businesses, which everyone welcomes. Long term thinking is good and all, but people want jobs and more than anything ways to escape from poverty. After all it's hard to think about future on empty wallet
Love this mindset.. haha although its also debt, but in fact, the interest rate of China loan was lower compared to IMF or WorldBank loan.. which is both of that 2 have many terms conditions dictating many developing country economy
It's ok to think about jobs, but please consider whether it'll make your children a slave in your own country.
@@silverybound If you don't have job then how can you raise your kids?
just give away your money, seaports and raw materials to China- I don't think so.
How are you doing my dear?
One question. Why #COVID19 instead of something related to the silkroad project?
For those people who think that China is offering a soft loan to Pakistan, remember soft loans actually mean very low interests and long tenures of repayment. Something like what Japan is doing. Japan is offering loans at 0.1% rate of interest and a tenure of almost 50-60 years if we include the moratorium period while china is providing loans at 2.34% for a maturity period of just 20 years. Let that sink in and remember most of these projects that China is sponsoring are declared unviable.
When all those 24 China SOEs under sanction by US operate in your country, you never knows when they might fail to pay for their local contractors and then the subcontractor and so on so forth. A single failure would cause massive domino effect on your local economy. That's the flip side of this BRI story.
They cant pay in dollars. Yuan is already making an entry in BRI countries. Maybe a ban will have a catastrophic effect of popularise the acceptance of Yuan in those BRI countries.
It's a set up. These are all strategic military (port) locations, or links to strategic locations that supply something China needs.
Yup, as well as rigging the world's trade system in China's direction and getting poor countries to pay for it.
So? Isn't the US also have strategic military ports around the world? What's wrong if China military use the ports with the host government's permission? Oh, the US can and China cannot? Innit?
Yup china isnt good.
@@Monkey341 both are same in some aspects except that US citizens have rights and dictionary of china doesn't have the word "rights"
Why the western countries and india don't lend develping counties so much money on infrastructures -they can't make profit because of too much risk .
@H A you mean "line trap "or "lia trap " ,india talks the talk and China walks the walk as always ..........
This happen to Monaco,Ecuador and know with Australia. No one understands that this is a loans tramp. That make each country economy colaps.
Not talked about poor construction😑😑🤣
Is it as poor as Indian construction?
@John Smith change you name back to its original one.
Cough... Cough eternal infrastructure the only can seen from the galaxy?? What was that and where was it located?
@John Smith most ofthe great wall is crumbling. What is shown is just some of the parts that hv been maintained properly and is for touristic purposes.
@@sanjayshastry2436 FYI John Smith basically has the same meaning as anonymous. What kind of retards besides celebrities would use their real name for internet accounts?
FYI, Singapore once leased Pakistan's Gwadar Port for 40years and then just left it to rot till China comes in and really develop it. There is a saying that Singapore bought it under US pressure so that the port wont be developed.
The real fear is of losing autonomy. A country like tajikistan already sliced off 5% of their territory to china just to be relieved of their debt.
Now imagine this but for all of asia.
This would be really bad, i constantly live in fear in mongolia. Imagining Umnugovi(one of the most important provinces in mongolia) to be handed over to china is terrifying.
That is incorrect China has not provided 60$ billion as debt
If this is a debt trap, isn't the US in the worst debt trap of all? It is the biggest debtor nation in the world with over USD28 trillion debt.
Can the US repay its debt? Is it coming to bankruptcy? Or is it going to use its military power to renegade on its debt?
It's manageable for a super power not for a small nation
when you purchase a house and your credit is bad, you find the bank with lowest interest rate and willing to loan your the $$$. when you can't pay it back, the bank foreclosure you, no problem with that. if you can't afford it dont buy it.
@John Smithman i literally feel sorry for you
@@captainamerica2573 #indkmkb right bro
The interest rate is only 2% annual and you use the loan to build your own infrastructure to mobilize local labor and facilitate trade. No sane country would want to be left out.
@Andrew Potter So you prefer ideology than economic prosperity? Now who's the communist here??
Nice loans at 2.34% sounds human, also the fact that a government thinks years ahead for the future generations to come sounds considerate and something unusual in this me me me world. I admire the progress they have made, and I am glad that my country USA, in the deep part, is very well connected and hopeful for a cooperative future. Looks like the planet will heal faster than expected.
i mean, who would build a port in an empty land?
4:43 Lol. Debt trap not a huge issue. The word itself is a problem. 😅
You're right my dear friend
4:43 Not a problem for people like him that pocketed millions in sacrifice of his poor fellow countrymen.
Here's a fact : After all these megaprojects Pakistan owes less than 6% of its total debt to China, rest of the debt belong to good old western powers and institutions.
Bit of history : Pakistan is one of the worst hit country by climate change, to mitigate its water scarcity Pakistan applied for loans to World Bank to build a mega dam name Diamir Basha Dam (a feasible project economically and politically) but World Bank refused to pay a penny. Ultimately we were forced to go to Chinese assistance.
@Rahul Ranjan it was Bhutto's socialism and nationalization of industry. We turned communist overnight.
I think it is a burden for other countries, so they return the money or not, time will tell. Other countries should focus on their own countries and the external debts they have already incurred.
It is a balanced view of BRI and very informative as usual.
The joke was the muslim brother ally SAudi gave loans at 3.1% to pakistan , while china has given @ 2.1 % that too long term of 25-30 years
@Mahadev you can see in any sane pakistani news channel.. well i dont need certification from Indian propaganda house certification in this matter. but you should know just like india, pakistani media outlets are sold. but in this case independent journalism thrives unlike india where all journalists from every news channels are sold.
@Mahadevha ha... i am not even pakistani. I am malaysian settled in canada...... HATS off for your little knowledge about Banking and finance. wish you a good healthy life. Malaysian and canda both Air force is pretty unknown, because they dont exist.
Cant even pay for wheat and barley , they are going pay back 50 billion USD at 2.1% interest in 25 years.
You didn't mention the part where you're essentially going to become a Chinese colony in the coming years. Your incompetent leadership has already let the Chinese annex parts of your illegally acquired territory. Soon, it'll be all of GB and Sindh.
@@mohitvyas97 be happy with this below data from your own country. What I have to do with Pakistan as I am not a Pakistani .
www.thehindu.com/data/data-over-12-crore-indians-lost-their-jobs-during-the-coronavirus-lockdown-in-april/article31520715.ece
Suggest reading article by Umesh Moramudali in the Diplomat for another perspective of the Hambantota Port deal : The Hambantota Port Deal - Myths and Realities.
if other countries don’t “pay up,” they may have funding cut off, but the loans are interest free. it’s worse to be in debt to the imf
Yes it is a debt trap
China isn't forcing those countries to take those loans no??
@G Mack So funny. As if if China really want to invade those countries even without roads they'll stand a chance.
@John Smith haa bhai global times ke Baad Sabse bada china ka mouthpeice tu hi hai bas
Pakistan Province of China...🤣
India occupied by china
@@salmanriaz5530 in your dream you little donkey
@@salmanriaz5530 Pakistan is the dog of china
If they don’t like the offer they can always go to IMF which unfortunately has worse and more strict conditions attached
The debts of Sri Lanka towards China are but 10 % of the total Sri Lanka debts. To remain intellectually fair, that is not a debt trap in itself. The fact that the country had to leave 70 % of the harbor for 99 years in Chinese hands however is not a healthy situation. It should make other countries think twice or three times before accepting the Chinese "friendship"....
Except the port was already lossmaking to begin with and Sri Lanka just earned itself a US$1.12bn positive balance of payment from that lease. And that's not even talking about the loan repayment. So whats not healthy? Oh i know. Corrupt sri lanka and the rest of the unsustainable debt which are >10% interest rate. I wonder what China charged Sri Lanka? Hmm only 3%.
Political aside, 1:45 the view is stunning when you have a road trip in there 😱🍓
@Luv Kumar thanks for the concern. I don't even have a money to travel in my own country. So don't worry lol. I'm just a human appreciating the world.
Construction of Hambantota Port, Sri Lanka started in 2008 with loans from western institutions and was initially managed by a Singapore firm. The BRI initiative was started in 2013, The Singapore company gave up the management rights. In 2016, the newly-elected government decided to privatise an 80% stake of the port to raise foreign exchange in order to repay maturing sovereign bonds unrelated to the port. Of the two bidding companies, China Merchants Port was chosen, which was to pay US$1.12 billion to Sri Lanka and spend additional amounts to develop the port into full operation. In July 2017, the agreement was signed, but CMPort was allowed a 70% stake. Simultaneously a 99-year lease on the port was granted to CMPort. Note that China only accounts for 10% of Sri Lanka loans. Western media has been running a smear campaign against China based upon false information
A really nice rosy picture painted by CNA Insider and like minded institutions but they as usual , like others who wish to sell their narratives , have omitted certain key points .
The whole project from the planners , engineers and management to general construction workers are all Chinese .
When the project is completed the traffic of goods will be one way , from China to Pakistan , and the traffic from Pakistan to China will be goods imported from other nations and not Pakistani made goods .
All benefits of this Chinese project is reaped by the Chinese and not the Pakistani .
Fails to mention the local people pushed aside without any compensation not only in Pakistan but Sri Lanka and Vietnam as well .
If one does a meticulous research it is much the same any where you find CCP China's B & B initiative , Malaysia cancelled their deals on this project because of this .
Of importance is the fact that the world economy is in a melt down and with the impending world wide food shortage the global economy will collapse .
It boggles my mind how so called MSM 's focus is so narrow and how they fail to see anything in its entirety .
What about American MCC agreement?
Pakistan usually gets excited on hearing the word "friendship". Its easy to fool those guys.
Projects like this is worthy of high admiration and appreciation coz it helps those countries towards development and economic stability.
Wowwww it's like google saying alphabet is the best company 😂
Same as what IMF did to Indonesia n other developing countries. Do you expect to borrow money to eat & then not pay it back? Seems like what poor citizens usually do
sound like what british did to hongkong lmao
The 99 year lease on the Sri Lankan port sure sounds similar to British colonialism of Hong Kong. China is putting new endeavors into neocolonialism in the form of investing in Africa(in hopes of extracting resources from the same nations they invested in, in the future), dominating the South China Sea for its resources, and obviously the BRI endeavor described in this video is also considered a form of neocolonialism too. But China really isn’t alone when it comes to exploiting other resource rich nations with bad economies(and weak governments) - take a look at America in Iraq.
If we really think about it, China is really trying to overtake America as a global economic superpower by playing the same “investment game” America played in South America(look at the banana republic the American fruit company established).
@@1OutOf8Billion thats why i say, china learns fast
Hong Kong thrived under British rule. Now Hong Kong is half dead under CCP one country one system law
@@jyju66 but thats illegal john, colonialism is not cool. If you see it that way then what china do to many ports across europe is allowed and people shouldn't protest about it.
In debt to banks, what if I cannot pay up my credit card
@Tawheed Ahmed Or even better: why would China go to war with Pakistan at first place? China is not dumb, unlike certain former USSR or US leaders.
@Tawheed Ahmed That's what I just told you: China is not dumb and won't start a war for 100 billion dollars.
Because that's barely 1% of China's annual gdp, which is even lower than China's annual military expense. Why would China fight a war of no profit?
Debt is only money and can be written off but the port, when built, is an asset that can always be used. When you go though a port do you know or care who owns it.
can you make a film about what IMF will do if countries cant pay back their dept?
They have strict conditions which are bound to increase the condition of country most times...
It seems to me the fighting against the BRI is getting weaker and weaker following by the effect of steady growing business among the attending countries. Using the debt trap as an argument against the BRI is so stupid because it means that less wealth countries should stay poor as they are by not seizing the opportunity to develop their own countries.
IMF： this is what i am good at
IMF-WORLDBANK-UN-CCP🇨🇳 Debt Trap Both are Bad and Dangerous Treaths to The People
I dont know if my country can stay neutral on this Economic Cold war. my fear is that My country is force to pick one side of the 2 axis of evil
As an Islamic country, Pakistan should not borrow money with interest to China or to any other countries, because in Islam bank interest is categorized as "riba" which is haram/forbidden. Thus, when Pakistan suffers of the debt trap, dont blame anyone but their own unlawful action. 😴😴
1:20 1300 km for 275 mil dollars? Wow. They should come to slovakia to builds our highways. I read 1km of ours highway did cost like 60 milion euro. It was mostly bridges and tunnels but still.
Pakistan is GONE under Imran Khan (the former cricket player star in the 80s)
They call this video a myth in pakistan😆
They live in imagination 😂😂
Isn't the US's unlimited money printing an ultimate debt trap to it's citizens and residents? The money printed is not directed into the investments (to boost productivity and thus future income), but purely into liquidity and consumption. How is that going to boost your average income? How are people, already in debt, going to pay up their new debts???
And I think what should be mentioned, Singapore, the nation which this CNA channel is based in, is an active participant in Belt Road Initiative. Lest the editor wants to portray the story into any narrative he/she has in mind, please do consider the role your own nation play in the first place.
Agree, just like how many anti China narratives has US and Australia agency and even their military complex behind like ASPI. But they were never mentioned too
Can't believe CNA just ask that question and put it as a title of this video. Where were u all this time? Are you guys living in a cave? RIP journalism.
It's not a debt This is the A.I 4th generation industrial revolution in full force.
This is the next generation of our children's children.
They need to dig a channel large enough for barges so the China 3 gorge dam water flow can be redirected.
Build this along side the silk road leading out of China towards Pakistan and India.
Fill these mile long water channel with fish , use water for farm irrigation to land that couldn't be farmed before or to improve the land.
This would not be debt but a change in humanity.
The silk road is only a road the silk river is the bloodline.
If this happens I would like to see small lakes with tree's flowers weeds bees wildlife along side the silk river road Earth needs help we all know it, this could be the China greatest move in the world.
I would like to see flotilla barges that have harvest crops on. Line the canal channel shoreline. Push barges around to docking bringing in the crop . Keep these farm flotilla rotation.
This will be fishing farming shipping . This is economy economics revolution in China.
Instead of building bullets like build humanity instead?????
P.s. Don't forget "SMOKE WEED EVERYDAY " .....
I don't think u know anything bout international politics
Karakoram highway is not through pakisthan.,its going through indian territory
paxtan occupied Kashmir 🇮🇳
A project on a Disputed land..Can't be successful as simple as it is..Yes it will be game changer ..Pakistan will be lost completely..Because terrorists will not let it go smoothly in one side another Baluchistan activists..If it happens Pak military would be removed by Chinese military to tackle such cases..And that's all for Pak
Africa says: If you don’t like China, please love us more than China
Love making sessions are over, when the kids like poverty ans selling assets get born.
Great job Xi Jinping, he wants to make other countries’ coffers look like a college student’s. As a Chinese person, I see the appeal of the belt road initiative and the string of pearls, both of them are meant to emulate the Silk Road and Indian Ocean trade routes(respectively). But, with the reckless debt relief put into the belt road initiative and the growing housing bubble in China, China is facing potential economic slump in the future.
If it makes you feel any better practically everywhere is looking to go through an economic slump in the future
nono you make sri lanka bankrupt
I don't understand why people call it a debt trap.. No one is forcing anyone to join BRI and it is totally up to individual countries to decide whether to join BRI or not. Is my choice of buying a house with a mortgage a debt trap ?.. The bank certainly did not force me to get a mortgage and it was totally my decision. Sure, the house price might go down and I might regret in the future, but how can I blame the bank who gave me the loan ?..
Easier roads mean easier access to economic growth.
Eg. A takes 1 hour to go to B, in this hour time period, people from A or B can go and sell/buy product once.
After the infrastructure investment which cuts the time in half, people can buy/sell products from A or B and go back and buy /sell. This hugely boosts area income hence GDP. B&I in the eyes of us chinese people is a great project for other coutries, if you want to get rich, build roads first.
Its like buying a mortgage in a developed city, Yes this mortgage will be high, but you are earning more than you do in your village previously.
You don't need enemy when you have friend like china :-)
""FRIEND"?? Be very aware whom you invite to your house as guest.
Lol 😂😂 Pakistan in debt trap now they need always loans for repay other loans so no growth for Pakistan
Maybe you can lend some money to those countries when they desperately need help or haters can go shut your mouth
@Mr K So the so called "Pakistan The defenders of Islam" and to lick xinnie's feet to defeat India ? Wow so brave
Just 2.42 percent?
JICA and the ADB is .4 or. 5 percent or even lower.
Obviously, this is a terribly made video with bias and misinterpretation on China Belt and Road Initiative. I would be extremely happy if someone loans me a few millions busks at annual interest rate 2.3% and payable in 20 years! And you called it as debt trap from China? You need to be re-educated !
Yess thanks CNA to stood up n speak. Thanks from India.
People should not forget that the 2008-2009 global recession was due to a debt trap caused by the greediness of US banks (subprime lending). They wilfully lent money to customers, who they knew would never be able to refund the loan, with the intention of seizing their property for default of payment.
Indeed , and certain countries with specific tax rates is consuming peoples each days , and yet nobody talk about it
I fail to see how this is wrong. If you can't pay your debt, expect to either sell your asset or mortgage your property?
that hi-way is shouting it loud PAK-CHINA...lol,,,
For 99yrs Srilankan port leased, is it not debt trap
Ever since civil war is over not a single decision by successive got has born fruit.i pity srilankan people cod got has successfully failed them
@Sean Yee never forget what the Indian contribution towards the development of yours and we much more developing than you and never stretch the hand for own security. Never play the game of back stabbing.
@Sean Yee yes we we rot food but never go out as refuge and never send our people as refugee
@Sean Yee oh really why can't the ccp fund projects in countries like America or Mexico because they'll pay up. targeting the economically weaker parts of the world.oh India has other ways.nit this one.you lease a port and control over it for 99 years with backchanelling fooling people voting.u awe India as a threat
@Sean Yee murdering minorities which world are u living in.no country has been ever tolerant towards them like India has been.i was referring to China funding projects which countries can't pay .cpec,sinhoukville,hambantota,it's not as if u r gifting unrelated literally having control over them for 99 years.its like colonial rule
China always plays the long game, Trump, umm, plays for his 2020 election.
Yes, next time let's blame the bank for giving you the loan for your restaurant which didn't generate the profit you presumed it would, and when foreclosed it's all the bank's fault not yours, remember that always.
It is !
#freetibet
USA : *Perhaps this country needs some democracy*
Perhaps you need some education
Investment always comes with risk. Ask any private equity fund manager that buy out or invest in struggling companies. The terms are spelled out and can be a savior to your company or country when things go well. Dont cry foul when things go sour. Countries should be lucky that such opportunities exist in the first place.
What happens when you can't pay the imf back?