Monday December 19th, 2022.
China and kenya- death trap diplomacy no
I've written a lot of stories in the past about China's debt trap diplomacy . China lends a country billions of dollars for some kind of infrastructure such as a port, and imposes a contract that says if the country can't pay back the loan then China Will own the port or other infrastructure.
China has always demanded that these contract be kept secret, since they're so favorable to China. China. they specify that the work has to be done by Chinese workers, and all materials and services have to be purchased from China. this means that the loan money is used to pay Chinese workers salaries, and also goes back to China in terms of purchases. the result is that the local workers and businesses do not benefit from building the infrastructure, and the country has to repay the loan twice, once to pay the Chinese workers , material, and services, and then still has to repay the entire loan to China. if there are any disputes, then they have to be settled in Chinese courts rather than international courts.
countries go along with these onerous contracts because China bribes the country's political leaders to do so.
in the case of Kenya, the terms of the contract leaked, and I wrote an article about it at the time. The money was loaned to build up the port of Mombasa, and if Kenya defaulted , then China could take control of any asset owned by the Kenyan government, including foreign embassies that were located in other countries.
China has practiced debt trap diplomacy on numerous countries, particularly countries in Africa, where China wanted to gain control of Africa's rich resources.
unfortunately for both China and Africa,
The continent is heading toward a repayment crisis, with 22 of 54 nations at risk of so-called debt distress, according to World Bank and International Monetary Fund criteria.
Biggest African debtors to China:
Angola - $42.6 billion
Ethiopia - $13.7 billion
Zambia - $9.8 billion
Kenya - $9.2 billion
https://www.bnnbloomberg.ca/china-may-h ... -1.1861001
this is also a debt crisis for China, because it has to choose between forgiving the debt, which means it would lose tens of millions of dollars or else foreclosing on the assets of numerous African countries, which would be a diplomatic disaster, and they'd still lose the money.
https://www.generationaldynamics.com/pg ... 190103.htm