China has dramatically curtailed its lending in recent years. Now, it’s emerging as the largest debt collector for many of the world’s poorest nations — a shift that threatens to undermine poverty reduction efforts and fuel instability, according to a new report.

Lending for China’s Belt and Road Initiative — which includes funding for a massive series of new railways, ports and roads in the developing world — began winding down before the COVID-19 pandemic, according to Peak repayment: China’s global lending, released this month by Australia’s Lowy Institute, a foreign policy think tank. The report points to diplomatic pressure within China to restructure unsustainable debt and to recover outstanding debts from abroad for the change.

  • Dogyote@slrpnk.netEnglish
    21·
    3 days ago

    I can’t get past NYT’s paywall, and it’s the NYT, they’re not going to give an unbiased assessment, but I found the wikipedia article. I’m failing to see how China “took the port back.” Looks like a Chinese company bought an 85% stake into Hambantota International Port Group, an entity created by the Sri Lanken government to run the port. The agreement allows the Chinese company to operate the port for 99 years.

    Then there’s this bit:

    Writing in 2023, academic and former UK diplomat Kerry Brown states that China’s relationship to the Hambantota port has become the opposite of the theorized debt-trap modus operandi. Brown observes that China has had to commit more money to the project, expose itself to further risk, and has had to become entangled in complex local politics. As of at least 2024, the port is not a significant commercial success, although shipping through the port is increasing.

      • Dogyote@slrpnk.netEnglish
        1·
        16 hours ago

        Said the pot to the kettle… your claim was refuted by several people. Maybe reconsider your stance?

        • Skiluros@sh.itjust.worksEnglish
          12·
          11 hours ago

          What wasn’t refuted?

          The port has no commercial viability. If it does, show me its transactions relative to ports of comparable size in say south India.

          Have you ever lived or visited the region? Sri Lanka or south India. Or any part of the Indian subcontinent. Or any part of Asia for that matter.

          Prove me wrong! I will admit I am wrong and will appreciate the correction.

          • Dogyote@slrpnk.netEnglish
            1·
            10 hours ago

            Well…you started with the idea that the financing of the port was a debt trap. I and others have already provided info stating otherwise. You appear to be moving the goalposts.