World

Chinese Debt Trap Diplomacy: Chinese Debt Trap Diplomacy in Asia and Africa

Strong points:

China is investing more than 33,000 crore rupees in African countries during the corona outbreak. After the poor countries of Asia now want to make the countries of the African continent their economic slave, the Chinese banks have made in China, Nigeria, Zimbabwe, Côte d’Ivoire and Rwanda Big investments
These days, China increasingly traps the poor countries of the world in its net of debt and greed. Many countries are heading for ruin due to this dragon’s date trap diplomacy. Until now, China’s attention has been particularly limited to Asian countries, but now the dragon is eyeing the African continent. In 2020, as the whole world was troubled by the corona virus epidemic, China had invested more than 33 thousand crore rupees in many countries in Africa. China’s decision is measured by the fact that it is investing in numerous projects in Africa, countries producing oil, gas and minerals.

Highest investment in Nigeria
Last year, the China Development Bank (CDB) and the Export-Import Bank invested at least $ 3.1 billion in the Ajokuta-Kaduna-Kano gas pipeline project in Nigeria. In 2019, China reduced its investment in energy projects by at least 43% compared to 2019. However, the cause is attributed to the corona virus outbreak. Due to the epidemic, the work of the projects in this African country has stopped, while China has also had to spend on health in its own country.

Global energy finance database reveals China’s decision
Boston University’s Global Energy Finance database found that China invested $ 8.19 billion in energy projects in 2019. However, the following year, 2020, that figure was reduced to 4. $ 6 billion. This amount is the lowest Chinese investment in Africa since 2008. According to the database, only two-thirds of what China invested last year was spent on the Ajokuta-Kaduna-Kano gas pipeline project in Africa. Nigeria.

Great investment of China in these African countries
The China Development Bank of China (CDB) and the Export-Import Bank of China (Exim Bank) are investing heavily in hydropower plants in Côte d’Ivoire and Rwanda and solar installations in Lesotho. Outside of these countries, these two state-owned banks in China have also funded billions of dollars in Bangladesh, Pakistan, Cambodia and Serbia. Most of this amount is associated with Chinese President Xi Jinping’s ambitious Belt and Road Initiative.

Zimbabwe’s environment on the verge of ruin due to China’s greed
Zimbabwe’s environment is on the verge of ruin due to China’s greed. In this country, because of China, not only the land but also animals and forests are threatened. Chinese state-owned coal companies Jenxin Coal Mining Group and AfroCline Smelting are relentlessly exploiting Zimbabwe’s natural resources. As a result there was heavy damage to the forest, animals and the land. Many environmental activists in this country have launched several agitations against Chinese companies, but the government has crushed these movements.

On the verge of ruin due to China’s greed, this country has a bad impact on the environment, forest lands and animals.
How did China view Zimbabwe
Zimbabwe is located in the middle of the African continent, where the best quality coal in the world is found. Despite this, a large population of Zimbabwe lives below the poverty line. China has developed bilateral relations with Zimbabwe to meet its energy needs and strengthen its penetration in Africa. Zimbabwe also needs foreign investment and funds. Instead of money, this country ceded many of its coal mines to China.

China exploits Zimbabwe’s natural resources
Chinese state-owned coal companies Jenxin Coal Mining Group and AfroCline Smelting have extensively exploited Zimbabwe’s natural resources. As a result there was heavy damage to the forest, animals and the land. Many environmental activists in this country have launched several agitations against Chinese companies, but the government has crushed these movements.

New country trapped in Chinese debt had to pay for its electricity grid
China plays ‘date trap diplomacy’
China is currently playing “date trap diplomacy” with countries around the world. Thanks to this, China grants loans to foreign countries in the name of the first infrastructure development. When that country is unable to repay this debt, it begins to capture their resources. The last example is Sri Lanka. Who had to cede one of its ports to Hambantota China in exchange for debt.

Back to top button