China’s government bank is paying more people than other people in paying taxes to other countries. This move of Chinese banks is being described as part of the government’s thoughtful strategy.
Chinese President shi Jinping has signed agreements for development of infrastructure in many countries under the One Belt One Road project, but these agreements are being described as one-sided.
China is working on the development of infrastructure in many countries around the world and has invested heavily.
According to the Wall Street Journal report, for the first time in 2016, three of China’s four big government banks have given more loans to foreign countries than corporate loans.
It has been reported in the report that China is forwarding its companies to businesses in the world of the world, from which one-way profit can be earned. It has been reported in the report that China is pushing the strategy very quickly to increase its effectiveness.
China’s increasing scope of debt
The three countries of South Asia – China, Sri Lanka and the Maldives are the outstanding loans of China. Last year, Sri Lanka had to hand over Hambantota port to China due to over $ 1 billion loan.
At the same time, Pakistan is also entangled in Chinese debt and once again in the economic crisis, it can go to China’s refuge.
China is also developing many projects in the Maldives. The projects which India was working on in Maldives have also been handed over to China.
Maldives canceled the international airport deal with Indian company GMR at a cost of $ 511 billion.
According to a report, foreign taxes on China Construction Bank have increased by 31 percent, compared to the 1.5 percent growth in the country.
Compared to 2016, the rate of grant of loan to external countries by the Bank of China rose by 10.6 percent in 2016. Since the arrival of China’s Command Xi Jinping in 2013, his ambitious plans have been further expedited in the One Belt One Road project.
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One Belt One Road
This is a project costing more than three billion US dollars. Under this infrastructure is to be developed. Through this, China wants to increase its dominance in Central Asia, Southeast Asia and the Middle East.
There are many countries with this project, but most of the money is coming from China-backed Development Bank and its public sector banks.
China is engaged in developing infrastructure not only in Asian countries but also in African countries. In those countries there is a country Djibouti. There is a US military base in Djibouti. Djibouti has given a major port to a Chinese company, which is unhappy with the US.
On March 6 last year, the then US Secretary of State Rex Tillerson had said, “China is encouraging many countries to become dependent on them. The contracts they are receiving are completely opaque. There is no clarity on the terms and conditions. Unaccounted money is being given and this will lead to wrongful deeds. The self-sufficiency of those countries will be eliminated, and sovereignty will also have an impact. China has the capability to develop infrastructure, but it is working to increase the burden of debt under its name. ”
The Center for Global Development says eight countries that are participating in One Belt One Road are buried with the burden of Chinese debt. These countries are Djibouti, Kyrgyzstan, Laos, Maldives, Mongolia, Montenegro, Pakistan and Tajikistan.
Researchers say that these countries did not even estimate the extent to which their progress would be affected by debt. In the event of non-repayment of loans, the countries taking the loan have to hand over the entire project to that country.
Chinese debt fear
Many experts believe that Nepal also wants Chinese help, but there is a fear in her mind that she may not be under the burden of Chinese debt like Sri Lanka and Pakistan.
The China-Laos railway project has been started under One Belt No Road. The total cost of this project is $ 6 billion, which means that it is half of Laos GDP.
Many people say that Gwadar Port of Pakistan is also growing on this path. China is spending $ 55 billion in separate projects in Pakistan
The fear that Nepal does not openly come with China
So India is so dependent on China.
Bhutan creates sandwiches between India and China due to drought
About Pakistan, it is being said that despite the pressure, the contracts of this project have not been made public. Analysts believe that a large part of this money is as debt.
According to a report from the South China Morning Post, Gwadar and China’s agreement in Pakistan are being said to be that China’s economic colony is becoming China.
There is a 40 year agreement for sharing and investing money in Gwadar. China will have 91 percent of its revenues and Gwadar Authority port will get only 9 percent.
Indeed, Pakistan will not have control over Gwadar for 40 years indirectly.
These eight countries under the burden of Chinese debt
According to the report of The Center for Global Development, Pakistan is on the highest risk of Chinese debt. China’s current project in Pakistan is $ 62 billion and China has 80 percent share in it.
China has paid Pakistan a high interest rate. It gives more emphasis on fear that the burden of Chinese debt will increase in the coming days on Pakistan.
The International Monetary Fund has said that the way Djibouti is taking the loan is dangerous for him. In just two years, the external debt on people became 50% to 80% of its GDP.
In this matter, Djibouti has become the first country in low income countries of the world. Most of these loans are from Exim Bank of China.
China is widely involved in all major projects of the Maldives. China is building an airport at the cost of $ 830 million in the Maldives. Building a bridge near the airport, which costs 400 million dollars.
The World Bank and the IMF say that the Maldives appears to be badly stuck in Chinese debt. Maldives has a confrontation in domestic politics and currently the power of the Maldives is in the hands of China.
Laos is one of the poorest countries in Southeast Asia. Under the China One Belt One Road in Laos, the railway is working on the project. Its cost is $ 6.7 billion, which is half of Laos’s GDP.
IMF has also warned Laos that it will lose the ability to get international dues in the way it is on.
How will the future economy of Mongolia depend on the large investments in infrastructure development? China’s Exim Bank was ready to fund one billion US dollars in the beginning of 2017.
China had a stake in Hydropower and Highway Project. It is being said that under the One Belt One Road, China will invest $ 30 billion in Mongolia in the next five years. If this happens then it will not be easy for Mongolia to get out of this debt.
The World Bank estimates that in 2018, the debt reached the people of 83% of its GDP. The problem of Montenegro too is its big project. These projects are to develop the port and to increase the transport network.
For these projects, there was an agreement with Exim Bank of China in 2014, in which the cost of the first phase will be 85 billion rupees in China for one billion dollars.
Tajikistan is counted among Asia’s poorest countries. The IMF has warned that it is under the burden of debt.
China has the highest number of demands on Tajikistan. Between 2007 and 2016, China accounted for 80% of the total foreign debt on Tajikistan.
Kyrgyzstan is also involved in China’s One Belt One Road project. China’s one-way investment in Kyrgyzstan’s development projects. China invested $ 1.5 billion in 2016. China has 40 percent share in total foreign debt on Kyrgyzstan.