Analysis How Sri Lanka, Pakistan fell into Chinese 'debt trap'

[Jackdaws]

Fair-weather ally? How Sri Lanka, Pakistan fell into Chinese 'debt trap' - Times of India

South Asia News: NEW DELHI: From exacerbating the bankruptcy of Sri Lanka to leaving Pakistan with staggering debt, China has been a silent orchestrator of the economi.

timesofindia.indiatimes.com

TOI no longer allows copying and pasting so click on link

From exacerbating the bankruptcy of

Sri Lanka
to leaving Pakistan
with staggering debt, China has been a silent orchestrator of the economic crisis that has engulfed the two South Asian countries

 

[xizhimen]

LoL, Besides " The Times of India", there are other things called facts

Real debt trap: Sri Lanka owes vast majority to West, not China​

By Ben Norton (Posted Jul 13, 2022)
on July 11, 2022

Real debt trap: Sri Lanka owes vast majority to West, not China | MR Online

Sri Lanka owes 81% of its external debt to US and European financial institutions and Western allies Japan and India. China owns just 10%. But Washington blames imaginary “Chinese debt traps” for the nation’s crisis, as it considers a 17th IMF structural adjustment program.

mronline.org

 

[Jackdaws]

More info on Chinese debt trap by the BBC

 

[xizhimen]

More info on Chinese debt trap by the BBC

You guys claim this for decades, but stand pale before hard facts and figures.

 

[Jackdaws]

You guys claim this for decades, but stand pale before hard facts and figures.

Yes, BBC, WSJ, TOI are wrong. Global Times is the Patron Saint of journalism and ethics.

 

[Nilgiri]

More info on Chinese debt trap by the BBC

When you go past surface analysis, things become more clearer given the interest rate and payback specifics compared to western institutional lenders, you and others can read the details, context and decide for yourself:

Biden announces Indo-Pacific economic pact to counter China

As I know, Samsung is still one of the best selling in the US. Many of my American partners use Samsung due to big screen with cool sylus pen plus good battery and they don't have to worry about spyware like using CN's phones (Xiaomi, Oppo ) -------------------- You know, the rich is always...

defencehub.live

There is reason why country like Vietnam doesnt take Chinese loans for "infra", it wants factories first.....and any foreign loan is analysed for true competitiveness and sustainability much more.

Vietnamese administration are smart and know the Chinese well @Viva_vietnamm

 

[xizhimen]

There is reason why country like Vietnam doesnt take Chinese loans for "infra", it wants factories first.....and any foreign loan is analysed for true competitiveness and sustainability much more.

Vietnamese administration are smart and know the Chinese well @Viva_vietnamm

Lol... Check out facts over illusions

Vietnam first metro line

 

[Nilgiri]

The predictable reply of using a 10+ year delayed and over-cost project that @Viva_vietnamm has ripped into multiple times before.

Vietnam rail debt to China comes due, but trains don’t run

The Cat Linh-Ha Dong rail line in Hanoi remains behind schedule and costs have soared.

www.rfa.org

I'm not talking legacy BS, I'm looking at current timeframe of last 5+ years ..... The Vietnamese stay out of implementing BRI MOU....in large part because of the bad taste of this over-delayed metro system.

We can see for ourselves if Vietnam approached China for any infra of any importance any more.

Vietnam’s Hidden Debts to China Expose its Political Risks

Although Vietnam’s Chinese debt burden is low compared to some of its neighbors, it is still a worry for the Communist Party mandarins in Hanoi.

thediplomat.com

In November 2017, Vietnam and China signed a MOU on the joint implementation of the China’s BRI and Two Corridors and One Economic Belt, in addition to creating an infrastructure cooperation working group and a finance and currency cooperation working group. Vietnam’s top leadership attended both BRI forums in 2017 and 2019.

But privately the leadership and policy advisors have expressed grave doubts. The 2017 MOU has gone mostly un-implemented for several reasons.

Vietnam was the fifth-slowest country for the completion of Chinese-funded projects, with an average of 1,783 days (4.9 years) for each project. Of the top 10 countries with BRI infrastructure projects that have been publicly linked to “scandals, controversies, or alleged violations,” Vietnam is ranked fourth, with five projects worth $2.75 billion.

So like I said, Vietnam is strict "factories first" country and learns where loans are worthwhile and which are best avoided after bad experience (unlike others).

But forget metros in dense populated cities though....(which are provable high ROI overall)....

There is absolutely no comparison with Chinese politicking corrupt loans to utter white elephant projects (like hambantota port , forget the much worse airport one in middle of nowhere) in a factory-shy country like Sri Lanka....that did their part in capsizing the forex boat altogether.

Sri Lanka public have now turned against PRC because of it....given their close and corrupt ties to deposed Rajapaksa family. Enjoy.

PRC at any time can step in and provide the first tranche of collateral to patron Pakistani establishment too (from CPEC MOU)....instead of always saying "go to IMF first".

Problem is the reality of CPEC itself....just like reality of Carrie Lam briefcase cash.

 

[xizhimen]

The predictable reply of using a 10+ year delayed and over-cost project that @Viva_vietnamm has ripped into multiple times before.

Are you talking about Ho Chi Minh City Metro which is being built by Japan?

Vietnamese girl talks about how China built metro line had been in operation while the completion of Japanese built metro line in Ho Chi Minh City is still nowhere in sight. how about Japanese built high speed railway in India, everything runs well on schedule?

 

[xizhimen]

I'm not talking legacy BS, I'm looking at current timeframe of last 5+ years ..... The Vietnamese stay out of implementing BRI MOU....in large part because of the bad taste of this over-delayed metro system.

We can see for ourselves if Vietnam approached China for any infra of any importance any more.

Whatever you try to dismiss China's role in Vietnam's development, China is still the largest trading partner of Vietnam every single year including this year, where are western countries?

 

[Jackdaws]

Whatever you try to dismiss China's role in Vietnam's development, China is still the largest trading partner of Vietnam every single year including this year, where are western countries?

All countries are large trading partners of China because it is a manufacturing behemoth. This has nothing to do with Corona Xi's debt trap and the laughing stock China has become

 

[Viva_vietnamm]

The predictable reply of using a 10+ year delayed and over-cost project that @Viva_vietnamm has ripped into multiple times before.

Vietnam rail debt to China comes due, but trains don’t run

The Cat Linh-Ha Dong rail line in Hanoi remains behind schedule and costs have soared.

www.rfa.org

I'm not talking legacy BS, I'm looking at current timeframe of last 5+ years ..... The Vietnamese stay out of implementing BRI MOU....in large part because of the bad taste of this over-delayed metro system.

We can see for ourselves if Vietnam approached China for any infra of any importance any more.

Vietnam’s Hidden Debts to China Expose its Political Risks

Although Vietnam’s Chinese debt burden is low compared to some of its neighbors, it is still a worry for the Communist Party mandarins in Hanoi.

thediplomat.com

So like I said, Vietnam is strict "factories first" country and learns where loans are worthwhile and which are best avoided after bad experience (unlike others).

But forget metros in dense populated cities though....(which are provable high ROI overall)....

There is absolutely no comparison with Chinese politicking corrupt loans to utter white elephant projects (like hambantota port , forget the much worse airport one in middle of nowhere) in a factory-shy country like Sri Lanka....that did their part in capsizing the forex boat altogether.

Sri Lanka public have now turned against PRC because of it....given their close and corrupt ties to deposed Rajapaksa family. Enjoy.

PRC at any time can step in and provide the first tranche of collateral to patron Pakistani establishment too (from CPEC MOU)....instead of always saying "go to IMF first".

Problem is the reality of CPEC itself....just like reality of Carrie Lam briefcase cash.

Relying on China in infrastructure projects only creat a huge debt trap.