Much of the debt owed to China relates to large infrastructure projects like roads, railways and ports, and also to the mining and energy industry, under President Xi Jinping's Belt and Road Initiative. Most Chinese loans have helped finance large-scale investments in infrastructure, energy, and mining. General Stephen Townsend, Commander of United States Africa Command, Senate Armed Services Committee, March 15, 2022. . Over an 18-year period, China has granted or loaned money to 13,427 infrastructure projects . This way nearly all adults have a chance of selection. The region has also previously been the site of violent tensions between minority ethnic Mongolians and Han Chinese. The new intelligence suggests around 20,000 Russian soldiers have been killed in the . Video, On board the worlds last surviving turntable ferry. But officials in Beijing have in fact long been concerned that their nations porous borders with Myanmar are facilitating drug production and trafficking in all manner of contraband, as well as providing an outlet for illicit capital flows. Singapore has also clashed with China over its claims in the South China Sea. A powerhouse in global trade, China has more shipping ports at. However, the plan might simply have come along too late. At around 4%, these loans are close to commercial market rates and about four times that of a typical loan from the World Bank or an individual country such as France or Germany. ", "Is China being smart?" 2023 Gatestone Institute. The Hong Kong authorities have arrested more than 110 people in national security investigations over the past year, charging 64, including most of the city's best-known pro-democracy activists . 'The Global Gateway': More Empty Promises from the EU? Longer submissions are unlikely to be published. If China was to take over Taiwan, . The territory of the People's Republic of China (PRC) has frequently been revised since its formation on 1 October 1949. "We hear from public officials in China all the time, saying 'Look, you're in the only game in town'," explains Brad Parks, executive director of AidData. The country is accused of leveraging massive loans it holds over. The Chinese Communist Party's Secret Projects in the US: What Is Going On? Taken individually, these "nations" would account for eight of the 20 most populous countries in the world. sports and entertainment. has called the level of debt many countries once again . The US-China Economic and Security Review Commission wrote in its 2020 Report to Congress: "China is dependent on Africa for imports of fossil fuels and commodities constituting critical inputs in emerging technology products. Let the Chinese have Africa. February 26, 2020. However, China's overall lending commitments are likely to be significantly greater than these figures suggest. In June last year, Malaysia summoned Chinas ambassador after 16 military aircraft flew over disputed waters off its eastern state of Sarawak. Here's a thought: Let the European Union deal with Africa and let the United States deal with South America. The "New Silk Road" project, which finances the construction of port, rail and land infrastructure across the globe, has created much debt to China for participating countries. by John Richardson China shares a contiguous border of 292 miles with Bhutan and territorial disputes have been a source of potential conflict. Those nations like Sri Lanka or Pakistan have floundered and unable to pay Russia will be no exception and tragically African nations too will fall into this trap. Singapore: Even though they entered a . It is beyond comprehension how come the West has remained indifferent and overlooked the sinister colonization model China is building in Africa. China has the impoverished workers willing to risk their lives for a few extra bucks in Africa. It is unclear why the report has not yet been published by the Nepalese government, the BBC said. The Chinese embassy in Kathmandu denies any encroachment. Its population is younger but more of them are unemployed or in extreme poverty. So who is really stuck in a debt trap? If Chinas role in international finance continues in the shadows, global risk assessments and country surveillance work will remain dangerously incomplete. But that is rejected by China, which accuses some in the West of promoting this narrative to tarnish its image. What's important is "to be seen as a developing, modern, and functional country.". and displayed without charge by all commercial and Despite a booming technology sector, the sheer size of India's population means it has been struggling to create enough jobs to keep up with demand. It says: "There is not a single country that has fallen into [a] so-called 'debt trap' as a result of borrowing from China.". What China's One Belt, One Road really means. "Beijing uses its influence in Africa to gain preferential access to Africa's natural resources, open up markets for Chinese exports, and enlist African support for Chinese diplomatic priorities on and beyond the continent.". Well over 100 countries worldwide had instituted either a full or partial lockdown by the end of March 2020 . Once growing exponentially, China's aging population fell last year for the first time in six decades. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. Africa is important to China for several reasons. Both countries face their own challenges. But when it comes to perceptions of each countrys relative influence in the world, much larger shares in most nations see Chinas influence growing than say the same of the U.S. Below are five key findings comparing international attitudes toward the two countries, drawn from nationally representative surveys conducted from Feb. 14 to June 3, 2022, among 24,525 adults in 19 nations. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage. The BBC is not responsible for the content of external sites. The new imperialism. In Hungary, which was last surveyed in 2019, views of the U.S. are down while opinion of China has not shifted. China has faced criticism for its lending practices to poorer countries, accused of leaving them struggling to repay debts and therefore vulnerable to pressure from Beijing. It will be very near impossible for the US or others to catch up on that, especially with the planned B3W initiative, because that initiative is not focused on much-needed tangible investments. BRI projects were more likely to be associated with corruption, labour scandals or environmental issues than other Chinese development deals. The articles printed here do not necessarily reflect the views of the Editors or of Gatestone Institute. Assessing repayment burdens and financial risks requires detailed knowledge on all outstanding debt instruments. Since 2011, trade between the US and Africa has been in decline. These disputes remain the main point of contention between Vietnam and China, and in many respects, they constitute a main driver of Vietnams foreign policy.. BRI aims to build an economic and infrastructure network connecting China with Europe, Africa and beyond, and has already strengthened China's global influence from East Asia to Europe by making countries worldwide increasingly dependent on China. which opened a debt-laden railway line to China last year. Here are the questions used in this report, along with their responses, as well as its methodology. Most of the line is owned by the Chinese-dominated railway group, but under the murky terms of the deal, the Laotian government is ultimately responsible for the railway's debt. Jace Zhang reported from Beijing, and Alex Smith reported from London. Just this week China was accused of encroaching on Nepals territory along the two countries shared border. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. As we have seen consistently in Pew Research Center surveys, people who place themselves on the right of the ideological spectrum tend to view the U.S. more favorably than those on the left. And 3) Forecasters of global economic activity are missing an important swing factor influencing aggregate global demand. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. That is reportedly "$8 billion more than what the other top eight lenders combined, including the World Bank, African Development Bank, and the US and European development banks, contributed." In June 2021, in an extremely belated attempt to counter China's Belt and Road Initiative, the Biden administration together with the G7 launched a new global infrastructure initiative, the Build Back Better World. This has led to its dispute with several countries, such as Taiwan, the Philippines, Indonesia, Vietnam, Japan, India, South Korea, North Korea, Singapore, Brunei, Nepal, Bhutan, Laos, Mongolia and Myanmar. "China is dependent on Africa for imports of fossil fuels and commodities Beijing has increased its control of African commodities through strategic direct investment in oil fields, mines, and production facilities, as well as through resource-backed loans that call for in-kind payments of commodities. China tends to lend at higher rates of interest than western governments. "And much of China's development financing is fundamentally a commercial operation.". Video, 00:02:36, On board the worlds last surviving turntable ferry. IE 11 is not supported. Start your free trial, French say coronation quiche is nothing but a savoury tart, Ukrainian grain: rousing the fury of east Europes farmers, Ten Things You Need to Know Today: 2 May 2023, New TV crime dramas and older shows to binge, What the One China principle means for future of Taiwan, High drama: India and China brawl in the Himalayas, Carnegie Endowment for International Peace, most well-known of Chinas territorial disputes. The editors reserve the right not to publish comments containing: incitement to violence, profanity, or broad-brush slurring of any race, ethnic group or religion. In Malaysia, Singapore and Spain, the opposite is true. The hostility, which triggered an angry protest from Manila, was the latest flare-up in the South China Sea, with China claiming virtually the entire waterway and transforming seven disputed shoals into missile-protected island bases. Increasingly, Chinese loans appear to require borrowers to promise hard cash earned from selling natural resources. China has chosen not to join this grouping, but using available World Bank data, the rapid growth in China's reported lending compared to others can be clearly observed. Instead, its four focus areas are climate, health and health security, digital technology, and gender equity and equality. One of the disputes that has the potential to trigger a huge global fallout is Chinas ongoing disagreement with India over its land border in the Himalayas. 2023 BBC. About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. Coastal beaches and shoaly lands: ~12,700 km 2. Since 2013 a Chinese Coast Guard ship has been stationed near Luconia Breakers, an area about 80 nautical miles north of Sarawak. The BBC reported at the time that, according to the Global Times, there had been several clashes between Inner Mongolians and residents of Gansu province in the area. North Korea has 127 and China 78, but due to the division criteria, some islands belong to North Korea even though they are on the Chinese side of the river. Some African shave already expressed their alarm at the harm to their economy, employment and resources caused by China and its BRI projects. Why was there NO reaction from the West. They don't need or want preachers to tell them how to behave, to explain democracy to them. The decision followed a warning by Chinas ambassador to the US that the countries could descend into military conflict over the independence of the government in Taipei. But the billion dollar project using loans and contractors from China became mired in controversy, and struggled to prove viable, leaving Sri Lanka saddled with growing debts. Conversely, more people in Malaysia and Singapore hold favorable views of China than the U.S. This Pew Research Center analysis focuses on public opinion of the United States and China in 19 countries in North America, Europe, the Middle East and the Asia-Pacific region. And while armed conflict directly involving the Philippines is unlikely, there remains a growing potential for incidents at sea to escalate. Therefore, now both the countries are required to settle the disputes amicably because presently both the nations . Only 2.2% of workers between the ages of 15 and 59 have received formal vocational training, according to government figures. It is estimated that 12 percent of Africa industrial production, or $500 billion annuallynearly. Workers in Jiangsu province, seen here producing equipment for export along China's Belt and Road, The Yumo railway will link China and Laos - but experts say Laos will struggle to pay back the debt, President Xi has sought to reassure others after criticism of China's global infrastructure projects, What is China's One Belt, One Road? Statista offers daily infographics about trending topics, covering:Economy & Finance, Politics & Society, Tech & Media, Health & Environment, Consumer, Sports and many more. As a result, private investors and other competing creditors may underestimate the risk of default on their claims. China has also claimed its right over all of North Korea on historical grounds (Yuan Dynasty, 1271-1368). News of the population ranking made headlines around the world. If a debt payment is missed, the Chinese lender can immediately withdraw the cash waiting in the account. Recently it engaged in a flurry of diplomatic activity with African countries. In 19 countries surveyed by Pew Research Center this spring, people see the United States and President Joe Biden more favorably than China and its president, Xi Jinping. China-North Korea relations can be described as complicated at best. For instance, in Greece, 60% of those on the right have a favorable view of the U.S., compared with only 22% of those on the left. On board the worlds last surviving turntable ferry. Beijing residents focus on superpowers as India's population exceeds China's. April 21, 202301:14. The required repayment period for a Chinese loan is also generally shorter - less than 10 years, compared to around 28 years for other lenders' concessional loans to developing countries. This is certainly correct and true. India's population growth is slowing down. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage." General Stephen Townsend, Commander of United States Africa Command. In Africa, which lags all other regions of the world in the availability of paved roads and electricity, that deficit is set to grow without a massive influx of hard infrastructure investment At current rates, the minimum deficit of the road network will be 60,000km by 2040 and an additional 30,000km gap for the rail network.". To address this lack of knowledge, we embarked on a multi-year data-gathering effort. This change does not substantively affect the findings in this analysis. This problem is aggravated by the fact that many Chinese official loans have collateral clauses, so that China may be treated preferentially in case of repayment problems. Those findings suggest that "population anxieties have seeped into large portions of the general public," even though the numbers should be seen as a sign of developmen, rather than a cause for anxiety, Andrea Wojnar, the United Nations Population Funds representative for India, said in a statement. Over the last decade, Beijing has adopted an increasingly assertive posture towards Malaysias territory in the South China Sea, CNA, a US nonprofit research and analysis organisation, said. That's what partly stagnated the economy of neighboring Japan, despite it already being a high-income country. For an optimal experience visit our site on another browser. And all the Germans remained obediently silent, accepting their truth. Thanks in part to slapdash colonial cartography, the boundary between India and China is undefined,The Economist said. In 2000, trade between China and Africa had been at a mere $11 billion. Maybe more importantly, our analysis reveals that 50% of Chinas loans to developing countries go unreported, meaning that these debt stocks do not appear in the gold standard data sources provided by the World Bank, the IMF, or credit-rating agencies. No part of the Gatestone website or any of its contents may be reproduced, copied or modified, without the prior written consent of Gatestone Institute. As a result, nations facing financial strains can turn to China before the international financial institutions, including the IMF. However, China is North Koreas only remaining ally and never before has North Korea been such a threat. What is China's One Belt, One Road? The details are given below: . The area overlaps Chinas expansive nine-dash line territorial claim covering much of the sea. Despite the vying population statistics, China is far more wealthy than India. Most of the major industrialised nations share information about their lending activities through membership of what's known as the Paris Club. The area in question is said to be claimed by both Inner Mongolians and residents of neighbouring Gansu province. China is alarmed by the Quad. Read our research on: Congress | Economy | Trust in Media. In many countries, younger people tend to feel more positively about China than older people. "I'm sceptical that Western initiatives will make much of a dent in the Chinese programme," says David Dollar, senior fellow at the Brookings Institution and the former US Treasury representative in China. As has been shown in the Ukraine, Russia cannot successfully project military power outside its own borders. Despite that, there's little doubt China's economic involvement in Sri Lanka has grown in the past decade, and concerns persist that this could be used to advance its political ambitions in the region. Evaluations of Americas global influence vary more widely. Outside of Singapore and Malaysia, people in every nation surveyed have more confidence in Biden than in Xi and in Poland and Sweden, the difference is greater than 60 percentage points. Excellent analysis of the Biden administration's fiscal management principle: Squander the multiple trillions of borrowed money. PM Modi took a dig at China by saying that the era of expansionism is over. Most African nations do not act like western nations when it comes to repaying external debt. Because the West is NOT offering what these countries really need (same happens with Latin America btw). China has repeatedly demanded that Indonesia halt an oil and natural gas project in the region, Nikkei Asia said, claiming that the efforts to extract natural resources are an infringement on its territorial waters. This gap in perceptions is largest in Australia, where more than three times as many say Chinas influence is growing than say the same about American influence (73% vs. 19%). What's the ROI on gender equity? The state broadcaster CCTV said China, which the World Bank credits with lifting almost 800 million people out of poverty in the past 40 years, was being slandered despite creating a miracle of sustainable and stable economic development with a huge population.. 2) Private sectors will misprice debt contracts, such as sovereign bonds, if they fail to grasp the true scope of a governments debts a problem thats compounded by the collateral clauses in many Chinese official loans, meaning that China will get preferential treatment when it comes to repayments. Xi must have, and took them very seriously. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. China's economy grows 2.3% in 2020 as recovery quickens. Dollar amounts please. China's growing role in international finance has remained obscure, mostly due to a lack of data and transparency. They want to eat and they want infrastructure. India, by contrast, has not achieved the same lightspeed development in manufacturing and infrastructure. The unreported lending from China has grown to more than $200 billion USD as of 2016. The resulting database provided the first comprehensive picture of Chinas overseas debt stocks and flows worldwide, including nearly 2,000 loans and nearly 3,000 grants from the founding of the Peoples Republic in 1949 to 2017. Now it's desperately trying to arrest a falling birthrate that means that as in many Western countries a shrinking young population will struggle to support a growing number of retirees. Our research, based on a comprehensive new data set, shows that China has extended many more loans to developing countries than previously known. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. Port projects, economic endeavors, infrastructure and their agreements and contracts will lead to greater access in the future. But a fear of war lingers due to North Koreas increasing nuclear capabilities. Surveys were conducted face to face in Hungary, Poland and Israel and online in Australia. The two countries are sparring over the Scarborough Reef and the Spratly Islands. It has been suggested that Beijing has bought its silence over territorial issues, The Diplomat said, due to an influx of investment that coincided with the suppression of anything that might be deemed mildly critical of China. In about a third of the places surveyed, more educated people are also more likely to say that U.S. influence is getting weaker. On the streets of Beijing, the mood was similar. Alexander Smith is a senior reporter forNBC News Digital based in London. Until 1986, the total territory (or under control) of the PRC was 10.45 million km 2, including: [1] Continental mainland: ~9.60 million km 2. 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In total, the Chinese state and its subsidiaries have lent about $1.5 trillion in direct loans and trade credits to more than 150 countries around the globe. They're not welcome in China though. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage. China has been a major player in Africa politically and economically and secured long term contracts to guarantee supply of metals, minerals and hydrocarbons to meet the needs of its industry for the coming decades. This control threatens the ability of U.S. companies to access key supplies.". The Times of India newspaper described this as "a ticking social bomb" in an editorial reacting to the population news. What are 'debt traps' and what's the evidence for them? At the end of 2021, of the 98 countries for whom data was available, Pakistan ($27.4 billion of external debt to China), Angola (22.0 billion), Ethiopia (7.4 billion), Kenya (7.4 billion) and Sri Lanka (7.2 billion) held the biggest debts to China. After pursuing economic liberalization in the 1970s, its economy has mushroomed to become the second largest in the world behind the U.S., with a gross domestic product almost seven times that of India, which is placed fifth. One could look to the lending surge of the 1970s, when resource-rich, low-income countries received large amounts of syndicated bank loans from the U.S., Europe, and Japan, for a relevant precedent. In September, an Iranian appeals court sentenced Ms. Daemi to seven years in prison for her peaceful activism. . Election Integrity's Biggest Threat: Big Tech, The Biden Administration's Vacuum of Leadership, Thousands of Political Prisoners are Rotting in Turkish Jails. Views of Biden remain much more positive than views of Xi. A point to note about the Belt Road initiative by China is the debt trap it is leading nations into. Already in May 2021, Townsend had warned that China was overtaking America in Africa: "The Chinese are outmaneuvering the U.S. in select countries in Africa. "America cannot ignore Africa. In order to keep the BRI on track, researchers say, Beijing will have no choice but to address borrowers' concerns. Both will have almost 1.43 billion people, according to the United Nations World Population Dashboard well more than a third of the planet's 8 billion-plus people between them. "They say: 'We can't get our hands on this data internally'.". China and Japan have repeatedly clashed over a group of uninhabited islands called the Senkaku Islands in Tokyo, the Diaoyu Islands in Beijing and theTiaoyutai Islands in Taiwan. BUT it was visible to any intelligent human being since at least 15 years ago. In an interview with the BBC, Richard Moore, the head of Britain's foreign intelligence agency MI6, said China uses what he called "debt traps" to gain leverage over other countries. While China has been increasing its annual Foreign Direct Investments (FDI) in Africa -- its FDI flows grew from just $75 million in 2003 to $4.2 billion in 2020 -- annual American FDI flows to Africa have been heading the other way. Simply copy the HTML code that is shown for the relevant statistic in order to integrate it.
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