CHINA’S DEBT TRAP DIPLOMACY

Debt trap diplomacy is a situation in which a country lends loans to other small and mire countries to establish bilateral relations among them or to help them. The debt trap diplomacy is thoroughly followed by the Chinese government to snare the mire countries who are on a crisis or requires funding. It has been well stated by John F. Kennedy, 35th president of the USA “The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger but recognize the opportunity” which certainly suits China.

It implicates that China provides a loan to countries which are stressed or are going through certain crisis, further when these countries are not able to pay the debt than China ends in acquiring their land or ports permanently or for some years on lease. They also have the opaque terms and conditions such as the development done in such areas will be carried by Chinese companies with Chinese materials and manpower.

China has been providing loans to many countries and most of them have ended up being trapped in debt. Countries like Djibouti, Pakistan, Sri Lanka, Maldives, Montenegro, Hungary, and many other African countries have fallen under its debt-trap diplomacy. Out of these countries many have become indebted to China due to which they have leased their ports and lands to China. As the Hambantota port of Sri Lanka, Gwadar port of Pakistan, and many other countries port has been taken on leased by China as they were unable to repay the debt.

Yes, there are many countries that require the loan but taking it on such a set-up is not an ethical decision. Presently Nepal has been a target country for China to make it fall under its debt trap policy, the government of Nepal should restrain such loans from China because it will surely make it suffer in the coming future. India has always restrained loans coming from China as the Indian government knows their stratagem. Accepting the loan is good but “It should not be like loan taken for treatment of one kidney but you ended up repaying it by selling other kidney”, and China certainly knows these tactics. So, every country must be conscious and aware of such entrapments by China.