Report: China's Belt and Road loans are putting borrowers and Chinese banks in danger | DW news

For a decade, China's ambitious Belt and Road Initiative has been a prominent lever of its trade and foreign policies: By funding major infrastructure projects around the world, Beijing can help its own companies and improve relations with countries far and wide.
A new study reveals that China has been spending hundreds of billions of dollars to bail out the countries involved in the Belt and Road infrastructure initiative. The study shows China's loans are issued to save its own banks.
China is tightening its financial grip on developing countries through its Belt and Road Initiative. Beijing has issued hundreds of billion dollars worth of rescue loans to bailout countries that have struggled to repay loans spent building "Belt and Road" infrastructure, according to a new study by the World Bank, Harvard Kennedy School, AidData and the Kiel Institute for the World Economy.
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[@spencerkimble3824]

Loaning Argentina large amounts of money is always a good idea

[@megalocoman]

FMI: First time?

[@tomhenry897]

Is if want to make them your slave

[@StephenGillie]

Don't cry for me, China!

[@furuwrecker1420]

Lol

[@Corazon_KAIZOKU_IN]

lol

[@shubashuba9209]

If the Belt and Road initiative made financial sense, private corporations would have been competing against China for these investments. The fact that China has been able to gobble up all these infrastructure investments means that either the Chinese government is subsidizing the investment or there was no competition for these investments because there is no return on investment.

[@martinfiedler4317]

To be fair, long-term investments with substantial externalities are nothing that private enterprises typically engage without substantial government-subsidies. But then, it was obvious long ago, that China was using this as a means to sustain its own economic bubble and to gain political leverage over some failed states.

[@richiesd1]

So that means that China was extremely generous to provide infrastructure where there was none before. The Chinese took a loss to help developing countries.

[@richiesd1]

@@martinfiedler4317 , So the Chinese took a loss for political leverage; and they build infrastructure where there was none before. What's stopping the West from doing the same if they want political influence?

[@esdeath278]

@@richiesd1 infrastructure? yes, money? no. They put countries in depth in a promised future profit. Then again the question is for how long would they be in-depth and how long before they received they're promised profit?

[@Jason-io9zg]

@@esdeath278 Because BRI is also a method of spending dollars. When one knows those paper gonna be devalued through inflation and doesn't want to purchase long term treasury bond, exporting infrastructure is the fastest way.

[@EverettBurger]

I assumed they didn't expect the loans to be paid back with money, but mineral rights

[@joem0088]

And that is what will probably happen.

[@Bk6346]

China gets overseas port or iron ore. Not a bad deal.

[@tko8218]

These "developments" are not free. These are debt traps. National lands and mining rights are also given to the Chinese.

[@shattered115]

Soon they can also request military basing rights in those countries.

[@frankfeng4728]

What is free, after all? You need to pay the interest if you get a mortgage. If you go under, you may lose your house. Isn't that common sense? It is also in your agreement with the lender.

[@breadnewbie6326]

it's commercial loan. everyone are free to take / not to take. of course there are terms and conditions related to default payment. everyone doing it. it's not free money.

[@larryc1616]

It takes 2 to tango...

[@levismith7444]

@@shattered115 and if those counties want their dept lowered they will likely accept the offer hence the term “dept trap diplomacy”

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@quattordicimontenapoleone3113]

Hasn't there been a lot of quality problems with the infrastructure built under belt and road? Not sure it'll hold it's value all that well as collateral.

[@nsebast]

They built it anyway. There is no infrastructure without China. So your choice is to have a barren land forever.

[@TheGreenReaper]

What use even is land if the country it is in is bankrupt? As a military base? More expense and staffing costs.

[@Rubinrus]

That's the case with any country giving you a loan. A lot of countries fell into the debt slavery to the west, a lot are falling into the hands of China. In this picture Russia stands like a hero, which forgives the debts... although it has became a complete nonsense to Russians themselves, given how many debts Putin had forgiven.

[@quattordicimontenapoleone3113]

@@TheGreenReaper Natural resources. China is doing this to control key natural resources.

[@Spaceballz123]

"China respects market rules and international law" 🤣😂😅

[@ronsmith3523]

US is for freedom and democracy😂😂😂😂

[@Doochos]

​@@ronsmith3523 Nice whataboutism

[@furuwrecker1420]

@@ronsmith3523you’re so unoriginal

[@StephenGillie]

I literally opened a laugh track in another tab just for this line.

[@lingard1744]

Funny thing is market itself is a china

[@arfajob4246]

1:59 So why all the secrecy over loan agreements and contractual responsibilities emanating from these socalled mutually beneficial weddings. And what is with all the bailouts anyway? Didn't China banks do their "due diligence" on customers ability to pay? How bizarre. 🙄🙄

[@alaric_]

When the loaning country has trouble paying back is exactly the goal of CCP the loans. Now they can say that "we will give you more time to pay back IF.." and then they can just start listing things they want. And you can be certain that they will be voting with the same way as China and it's not coincidence. CCP will demand just enough money to paid back that with the interest rates they will be hanging from that debt for decades. And all that time they can't say no to CCP as they will "have to return to the normal pay-back rates" that the poor debted country can't pay. It's a genius and evil plan. Just like the IMF loans, different in most ways but equally evil nontheless.

[@ChinaSongsCollection]

But how do you know they were done in secret? And how do you know loans from other countries were not done in secret? And how do you know they haven't done their due diligence? It isn't like the likes of the IMF and World Bank and other western lenders didn't lend to these exact same countries. In fact, *NOT ONLY* that the IMF and World Bank and other western lenders have lent to the EXACT SAME countries, but in fact *most of the loans owed by these countries are OWED TO these western lenders, NOT CHINA !!!* For example, Sri Lanka recently went bankrupt. It turns out that China's loans to Sri Lanka only accounted for a small fraction of Sri Lanka's loans. The great majority portion of Sri Lanka's loans turned out to be owed to western lenders!!

[@falsch4761]

@@ChinaSongsCollection The New Coming collapse of China 2023 edition.. Improved from 2001 Gordon Chang version.. Someday they will be right... someday..

[@arfajob4246]

@@ChinaSongsCollection Trouble with reading old son? 😂😂

[@arfajob4246]

@@ChinaSongsCollection How about this then old son? Hot off the press, check it out if you are allowed to lol. House Bill to Strip China's ‘Developing Nation’ Status | China In Focus

[@robertlee9838]

Please do not China, China, China all the times. Please worry about your own banks.

[@Arch3r666]

So, is Argentina helping Western countries by crippling China's banking system? Just because a country is in debt, if they collapse, would they even honour the agreement when they rebuild? As they say, if you owe the bank $10,000, that's your problem; if you owe the bank $10,000,000, that's the banks problem; but if a country owes the bank $10b, that's the government's problem

[@weewillywonga]

Yeah exactly. And if these countries refuse to pay China, what is China gonna do? Send its navy and army to enforce the loan? Lmao nope. No power projection, no way to enforce debt in situations of sovereign risk. Silly Chinese, not quite the long term strategists people think they are!

[@kg9799]

In this case country owns the bank 😀

[@tomhenry897]

But when countries owe countries the debtor country can be occupied by the loaner

[@ajaykumarsingh702]

To be honest, in the international world if a country dis-honors the loans, it badly affects its credibility and intention. They will never find another lender again. So it's a game of reputation actually.

[@happymelon7129]

Argentina can tell U$ , it will let China to build military base if no help from U$😆

[@aquaman12187]

China’s version of predatory loans but on developing countries

[@breadnewbie6326]

it's commercial loan. everyone are free to take / not to take. of course there are terms and conditions related to default payment. everyone doing it. it's not free money.

[@SanLucas-hr8pf]

Good times are when people make debts to pay in bad times

[@SanLucas-hr8pf]

debt are debt it the borrowers obligation to pay it!!!

[@cinpeace353]

Those countries still avoiding G7 loans. You can see who is the predator that every country are trying to avoid.

[@nunyabusiness863]

@@cinpeace353 those countries are high risk, as China is learning.

[@tucoramirez6058]

What surprises me is that China thought they could do better with these basket case nations than the British, French, Spanish or whatever Empires?

[@protagonist9716]

Ask them today. These nations prefer China over and over and over west

[@Speedkam]

@@protagonist9716 only because payback time hasnt arrived at full force

[@tomhenry897]

China wants them to deflaut

[@StephenGillie]

@@protagonist9716 If you pay someone to be your friend, you'll have a friend only as long as you're paying them.

[@sladewinberry8283]

That's such a good point😅

[@advancetotabletop5328]

Forget Taiwan. I want to see what happens when China sends in troops to countries that demand they leave.

[@protagonist9716]

Wishful thinking.

[@ponysaurusrex5008]

You been playing too much Call of Duty/Battlefield, stay in school and educate yourself kid.

[@bookertee3057]

Take a look at the poorly built road in Montenegro. The road cost over a billion euros and left Montenegro in debt. Some parts were environmental disasters.

[@dxelson]

what kind of road doesnt cost billions of euros? and Why didnt the Europeans build it for them?

[@kamsunleong6648]

Take a look at their neighbor Croatia Peljesac bridge. Also built by the Chinese. It unites the country that was split by Bosnia H.

[@weewillywonga]

@@kamsunleong6648 lol asians talking as if they know anything about the Balkans…

[@protagonist9716]

​@@weewillywonga This dw report has no idea how much help China has given to poor countries. Bangladesh pm was on TV to happily defend the investment. Only west is jealous

[@DSan-kl2yc]

​@@protagonist9716 I'm not going to say you're wrong. But a politician might defend a bad position if they or their party might be considered responsible.

[@rickstevenson9585]

China is like a used car lot that tells people, "Bad credit? NO PROBLEM!!! Bankruptcy?! NO PROBLEM!!! No job? NO PROBLEM!!!" Then they're shocked that none of these countries are paying the loans back 🤣

[@joshlewis575]

They're not shocked they planned on not being paid back. They want the territories they feel are strategic. This was the plan all along, the countries default and China claims whatever strategic land they were eyeing up

[@rickstevenson9585]

@@mainmusik3677 aka they become vassal states of China.

[@SpaghetteMan]

Western education has failed you utterly. These countries sit on some of the most important resources of the modern world, and have significant populations of people hungry for education and greater prosperity. The West has ignored the global south for decades, and now its suddenly only relevant again because China chose to see these nations for their true potential. For real, just stfu. Your stupidity is showing.

[@crimsonhalo13]

When knew that predatory loans have consequences?

[@StephenGillie]

@GN28 Why do you want to keep developing countries down? Are you afraid of the competition they might pose if they were properly funded?

[@marcanthony8873]

“China respect’s international rules”. Good one.

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@padtag1742]

At least China pays for the resources , not robbing them, not trading slaves, not forcing other countries to buy opiums, not use agent orange or depleted uranium to bomb other nations, not occupying others lands and raaaaap the local women leaving mass half US babies behind…

[@anfio137]

Creating wealth and a better life through building infrastructure has been successful in China, but it may not be successful in other countries, which requires each country to make its own judgments.

[@alexlazar4738]

Ok, you try to be wealthy and successful without roads, bridges, railways, airports, harbors, dams, powerplants... I am sure they will make their own judgement trudging over a muddy road and swimming across a river to get to a shack without electricity, water and plumbing

[@bgg2249]

Without convenient transportation facilities, complete power plants, and networks, all methods of becoming rich cannot be carried out

[@bruceburns1672]

It has only been successful in China because it was handed to them on a platter by Westeners initially .

[@tomhenry897]

At what cost No benefits if pay more then it should

[@alexlazar4738]

@@tomhenry897 i have no idea why you don't want those countries to have roads, bridges, railways, powerplants, airports and harbors? so you can have your 50 cents for the comment?

[@bellohadiza9414]

Nothing can stop the progress of belt & road initiatives it would continue wether the west like or not , Great China and the rest of the whole world would succeed period .

[@alaindumas1824]

The progress of the belt & road initiative did not stop because the West objected but because Chinese banks were burnt. Since 2019, the amount China is receiving in loans repayments is greater than her new commitments.

[@kirovfactory]

whatever the enemy opposes, China should double the effort in doing it

[@IMGreg..]

Your choice of words is why the West opposes you. Enemy, you said it not us. For decades your enemies have sent companies and trade in hopes of lifting you out of poverty and being friends. But now we know who you are and what you think of us, so we'll move our companies and our trade, stripping you of our wealth and blocking your access to our markets. Then you will truly know us as your enemy as your economy crumbles and your bellies go empty. You only have money because we bought the things we needed from you but manufacturing is, as well already know, transportable from one region to another. Bye, bye China you ungrateful prick.

[@user-ft6ts4kv3e]

yes

[@SamiKotiranta]

Trusting your nations future in Chinese hands is absolute madness...

[@breadnewbie6326]

because they already know how bad it is trusting their nation to the west for the last few centuries.

[@RosscoAW]

Because trusting in America has proven to be such an excellent deal for everybody else involved.

[@inte4573]

​@Ross yes its been great less and less people are starving and are poor no war between any major power its the greatest peace in mankind's history its still not perfect but things have been slowly getting better for people all over the World!

[@ponysaurusrex5008]

@@inte4573 have you considered assessing the living standards in previously occupied countries by the US?

[@stvdmc2011]

how was it going before china comes along?

[@StephenGillie]

The debt trap was so extreme that not even China could escape.

[@ysub2435]

When ones have a sinister mind... Then he'll fall.....

[@80sGuy.]

Still believe in the _Debt Trap_ myth. Those article narratives are designed to _trap_ minds like yours and it is working like a well-oiled machine. It's called brainwashing.

[@herrwolf5184]

Because of China debt trap, US bank is failing.

[@silveriver9]

The China "debt trap" narrative has recently been debunked by the British Debt Justice and World Bank data. They found that African countries owe 3x more to Western banks, asset managers and oil traders than to China, and are charged double the interest. 12% of Africa's external debt was owed to China lenders, compared to 35% to Western private creditors. China has since cancelled the debt for 17 African nations.

[@git_r_done_776]

A country rich enough to loan out hundreds of billions of dollars to other countries can't possibly be considered itself as a "developing country", wouldn't you agree?

[@huanghermann5207]

what is your definition of a developing country? Is it accepted by ALL countries?

[@lowwastehighmelanin]

I don't really want to discuss it because their wumao will just overwhelm the replies and it's extremely annoying

[@user-nu8lq8wt8u]

一个月工资只有3000块，还TM工作12个小时才能拿到。鬼TM的发达国家

[@jont2576]

I mean a country with 1.4 billion people can't really call itself a country either.....it's more like a continent,multiple continents.

[@breadnewbie6326]

you should check the definition of developing country first, then you can use it as the base of your opinion.

[@HTV-2_Hypersonic_Glide_Vehicle]

1:54 whew! that was a good one

[@colinfrederick2603]

They get high interest rates, they get leverage with those who struggle to pay, and they often get to own the thing they financed in another country’s territory. Sounds like a win to China. Just look at the deepwater port in Sri Lanka as a way to cut out India from their trade route.

[@daniel86250]

You people sounds like Parrots.....Sri Lanka....Sri Lanka......that's all you have to say for a trillion dollar project with 130+ members......the default of a tiny island nation of which China's total debt is 10%......you westerns are becoming more of a joke by the day.....a very bad tasteless joke 😒

[@serunasorin6250]

Yes but at least they get infrastructure , its better than what usa is doing

[@davetsang88]

Like all investment portfolio: you win some and you lost some. 250 billion is a bargain, when you compare it with the trillion(s) US spent in the failed Afghanistan war.

[@kimwit1307]

I've said from the start that this whole project was a way for China to quite litarally buy influence in coutnries and Asia and Africa. The economic viability of this project was doubtful from the start.

[@grigol101]

Didn't the US do the same for Western Europe, Japan, South Korea after WW2?

[@kimwit1307]

@@grigol101 Part of it was economics: to create trading partners and part politics: in order to prevent the rise of communism in the impoverished countries. The Marshall plan as it was called. But it was an aid-program, not loans with collateral in the form of real-estate (like entire ports).

[@grigol101]

@@kimwit1307 "..in order to prevent the rise of communism in the impoverished countries.." "..it was an aid-program.." In other words, it was a purchase of loyalty to advance their plans on the international stage. Or do you believe in the absolute altruism of the State Department?

[@kimwit1307]

@@grigol101 No, but there were a lot less strings attached and no malicious fine-print either.

[@tomhenry897]

No We helped them recover to be the powerhouse of today Not hold them back

[@Cosmic_Owl007]

The comments on this video is a perfect example of why more people need to know about ADV.

[@Tacit_Tern]

Those guys are doing the Lord's work

[@herrwolf5184]

I used to like them guys, until they went full retard.

[@juliarichter6987]

What is ADV?

[@Tacit_Tern]

@@juliarichter6987 ADV goes live on fridays. Its a show hosted by two guys who lived in China for over a decade, who expose what the CCP-PLA is doing around the world. Last year we exposed 53 "secret overseas China police stations" in over a dozen countries, and had them shut down.

[@herrwolf5184]

@@juliarichter6987 a youtube channel run by 2 americans. They are highly anti china

[@CHMichael]

I guess that's what you call supply chain infrastructure. It's going to be interesting if companies that choose to move production will find this in other countries.

[@ridgemondhigh4891]

But hey, White Elephants sure look great.

[@IMGreg..]

Move production from where exactly? Your open ended question suggest leaving production in China. lol Mature Western companies are use to setting up new locations and should be aware of what they need to operate. A labour force, water, roads and reliable power, they're not coming until there are solid assurances these will be in place. None of those are sexy but that is where the initial investment needs to happen for long term success. You don't build a house from the roof down.

[@CHMichael]

@@IMGreg.. solid assurances - I remember back when chancellor Kohl traveled with German industrial leaders to China to work exactly these assurances out. Was that what kamala was doing in Kenya? ( sarcasm) It's great to see that at least some people understand that finding new production locations is a much more involved process than just building a factory and a road.

[@chaomingli6428]

How amazing this can be a news video without a single solid number.

[@jackbradley3388]

Some of it is secret, look at the debt among Chinese provincial governments, they don't even have to report it! Could be $5T, could be $10T, no one knows

[@Doochos]

Do you expect the CCP to release reliable data?

[@80sGuy.]

@@Doochos ...and how would YOU be so sure _and_ know they wouldn't. I'd like you to prove that to me first before I can even believe you. Hearsay doesn't count otherwise I can give you a thousand reasons.

[@80sGuy.]

@paper plane They only have deep distrusts and problems with the United States. Rest of the world has no issue. Didn't you watch the Alaska Summit?

[@rollingdownfalling]

Egypt's new administrative capital is really impressive.

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@Anty2004]

If you're looking for a slightly more in depth take on this, I'd recommend the channel 'China Update' who covered the reports today.

[@rizalmiehishamabdrahim4369]

China allows their banks to give loan despite the economic feasibility because it gives China political cloud. Problems happens as one of the loan provision is the borrower must hire Chinese contractor (CCP connected of course). Unfortunately project build by these contractor tends to run over the budget as when host nation strict control of the quality force them to use standard grade materials unlike mainland China where due to political connection they tend to use sub standard materials in their construction. So when project completed the cost ballooned and host nation had to fork more money.

[@kongwee1978]

Yes, US and India never over budget and on time!

[@pohanahawaii]

Yes, also high variable interest rates, contract terms not available to public scrutiny, extraneous/vanity projects that IMF already passed on like unnecessary ports/railroads that'll have little use so borrower can't recuperate the cost, and in Africa, loans to mostly coastal countries because China aims to control trade routes.

[@kentershackle1329]

Slender n lies..

[@jont2576]

Do u think 90 percent of these poor undeveloped,semi developed countries in Africa,south america and asia care a lot or have strict controls about quality?they are happy if somebody even volunteered and showed up to built them a couple of dams and power plants cause clearly no one has done so for decades.

[@Pietrofs75]

You have talked so much, but first, if you borrow from others,like US or India, is it the same budget problem? Second, why don't other countries lend you money? Third, is your credit rating good?

[@MrSilvesterlaw]

Is the loans on the US dollar or China Yuan? It might make a differences long term for China.

[@firecat5338]

Did I hear it correctly? Did the Chinese representative say China did not seek political gains by lending money? Who here believes it, raise your hands

[@sittingduck02]

Just to put things into perspective, China spent $240B between 2008-2021, over 13 years, helping other countries build infrastructure; U.S. spent $800B in 2021 on defense. No opinion, no judgement. I saw bunch of people laughing & joking on China, and felt the need to put out some numbers. I am American.

[@juliane__]

Partnership for Global Infrastructure and Investment will invest 600 Biollion in 5 years till 2027. The US give 200 Billion, so 40 Billion per year. China: around 21 Billion per year. So the US does both... and both more of it. The West does way more than China, contrary as it is said in mainstream media.

[@sittingduck02]

@@juliane__ I think you are just quoting the G7 future promises. Big difference. China has spent and done so; G7 is throwing empty promises; furthermore President has to sign and Congress has to approve.

[@sittingduck02]

I mean China can promise a future $1 trillion donation to the world, does that count? What a joke.

[@livingwater888]

Nah Indonesia my country is happy , BRI brings huge benefits on our modernized infrastructure and will be better in 20 years compated than infrastructure in the US. Btw we have now a new High Speed Train from China @ 350 km/hr, pretty soon Chinese made airplanes are flying in our several islands. A new modular Thorium nuclear plant to supply energy for brand new smeltee to process tin + rare minerals + silica sand for photovoltaic cells ,semiconductors and EV batteries...China always walk the talk ...no BS empty promises like we heard from the west so far. Their infrastructure construction capability is no match, high tech innovation is crazy to watch. No wonder they are the no 1 FDI country to cooperate. Politics are for snake oil sellers eh 😂😂😂

[@silveriver9]

The China "debt trap" narrative has recently been debunked by the British Debt Justice and World Bank data. They found that African countries owe 3x more to Western banks, asset managers and oil traders than to China, and are charged double the interest. 12% of Africa's external debt was owed to China lenders, compared to 35% to Western private creditors. China has since cancelled the debt for 17 African nations.

[@polarbear5496]

Strategic analysts are of the opinion that China is passing off these projects as infrastructure development initiatives that will benefit the host country but are indeed nothing but strategic assets of the ccp. The risk of many of the countries being caught in a debt trap is now a full "soverign debt trap".

[@China_Secret_Police]

The word "Host" is apropos. btw.... do I Remember U

[@syncradar]

They can nationalize the assets.

[@happymelon7129]

12-7-2022 Britain-based charity Debt Justice: 35% of African gov debt is owed to Western lenders compared to 12% owed to Chinese lenders The average interest rate on Western loans is 5%, compared to 2.7% Chinese lenders.

[@tslee8236]

Of course the projects are strategic to Chinese interests. They are part of the BRI! BRI benefits both China and its trading partners.

[@alexlazar4738]

What's better for the world? Recycling trillion dollars endlessly into the US treasuries or building the desperately needed infrastructure in the developing world?

[@1981Frederick]

wonder what they were doing in argentina to rack up that many loan

[@mikeliu5201]

😂 china doesn’t need Germany’s input to how to manage finance. Lol

[@bismif469]

You have been talking these for years. Yet it is your banks which are failing. Why not talk about it.

[@johnmaris1582]

China, unlike IMF, will probably use debt country raw material as collateral. Usually IMF prefer government austerity but China have a different strategies.

[@GraniteInTheFace]

Sorry that's bs. IMF uses austerity and market liberalization. Their's a reason why Ecuador, a resource rich nation and relies on the IMF, has mining companies which are >85% Canadian owned. The IMF forces the door open and the companies run in to pick up contracts pennies on the dollar.

[@etbuch4873]

@@GraniteInTheFace ，Therefore, it's rather odd, to say the least, that the DW a Germany's supposedly rather reputable state-funded TV station would overlook the facts that Canada owns more than 85% of the control of Ecuador's mining companies, let alone calling out Canada and the IMF (the US-controlled financial game institution) and the scheme as "debt-trap"?

[@wrightvcx2249]

@@GraniteInTheFace IMF has helped many countries come out of poverty and helped propel their economy through market liberalization. People only see the negative side of out which is quite common for any type of lender. Don't take money if you can't pay it back. Nobody every forces anybody to take out a loan.

[@JR-vc4gm]

​@@wrightvcx2249 same goes for the Chinese investments, you can't have it both ways that you only see bad side of Chinese investments and only good effects of IMF.

[@ad_astra468]

It's not like the IMF doesn't, what do you think privatization is? Selling assets that's what it is, China and the USA play the same game neither one is lending money out of kindness. Doesn't mean they are bad IMF and BRI loans can help a country build up but they are just loans and like any loans they need to be repaid plus interest or you'll get something taken from you to make up for what you owe. In my opinion competition is always good for the consumers, I hope all countries are putting their smartest economists to choose what loan is best for them.

[@czl0909]

What happend to the debt trap study?

[@Jack-hc6ux]

I remember that the European Union has also come up with a similar plan, which is said to be used against China. How to explain it?

[@paulskiye6930]

One has to wonder why they actually chose China. 😅

[@nunyabusiness863]

Not that you were looking for a response but it's because many of these nations have an instinctive revulsion to us and european influence over their countries and view them as imperialist. As a result they favor China or Russia. What they do not realize is many of their poor economic standings are due to corruption, bad decision making and a refusal to do business with western investors. Just look at brics, it is built mainly on west hate, not sound economics. They openly say they do not like the wealthiest most powerful nations on earth calling the major shots. Brics says all member parties are equal, yet ironically china recently got upset about not having more influence within brics because they put in the most (200 billion) to fund it. Its almost like the wealthiest most powerful contributor should actually have more say.

[@protagonist9716]

Read history. World is sick of white colonial mentset

[@alaindumas1824]

Because they are known basket cases, and no-one else is lending them anymore.

[@alexlazar4738]

nobody else was willing or able.

[@silveriver9]

The China "debt trap" narrative has recently been debunked by the British Debt Justice and World Bank data. They found that African countries owe 3x more to Western banks, asset managers and oil traders than to China, and are charged double the interest. 12% of Africa's external debt was owed to China lenders, compared to 35% to Western private creditors. China has since cancelled the debt for 17 African nations

[@anonymousperson3419]

western bank is in mid of crisis with US regional bank and Swiss bank in trouble. no?

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@ccreasman]

Did you guys use a computer to read your text on this video?

[@lorddebate]

They use the debts .. give loans to countries with corrupt politicians..and that country is left with high interest loans ..

[@livingwater888]

Example Japanese loan to India for HSR , 7 years delayed , cost overruns ? Sovereign loan ? Like IMF and World Bank.

[@mannycomas]

Substitute iMf with bRI and it’s the same. Only one empire is dying and the other is ascending

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@FOLIPE]

Well, the IMF takes over a country's social and economic policies, China doesn't...

[@johnnydoe3603]

Pakistan and Sri Lanka took Loans from China & look What Happened to them. 😂

[@breadnewbie6326]

loan from china is only 10% of the existing 90% from IMF and ADB. the 90% is the problem, not the 10%.

[@protagonist9716]

Worry about bank failures in the West. Or the protests.

[@MmmM-uo6ti]

Try hard bidump Jihadists BOT

[@wynetsang]

Even if there is not financial problem, the finally built infra-structures are simply sitting ducks for shooting target practices.

[@caocaohehe]

What currency are the loans ?

[@100c0c]

75% are denominated in USD

[@caocaohehe]

@@100c0c Do you think they will be allowed to pay in RMB? Or exchange with resources?

[@100c0c]

@@caocaohehe Usually resources or currency swap with China. Someone has to pay the USD at some point though

[@kuhndog7468]

700 billions to bail out banks in the us 2008

[@alexlazar4738]

What's better for the world? Recycling trillion dollars endlessly into the US treasuries or building the desperately needed infrastructure in the developing world?

[@annapatrikeevna1464]

for what world? you sponsor the war. you don't have to worry about what your government is doing. you need a head to eat and not to think.

[@tomhenry897]

That’s too expensive for the locals to use

[@annapatrikeevna1464]

@@tomhenry897 show us Russian slaves from a country ruled by a dictator how your democracy and freedom of speech work😆

[@CatsFerDays]

I’m laughing so hard at the fact China can’t do much right 🤣

[@TaiwanNationStatusQuo]

I hear you. The price tag is 10 billions USD That China promised Honduras this time. It's nothing that's why China don't consider mention it as money. China is so wealthy that its people are so thrilled to give away to fund the projects to show how powerful China is.

[@SeeLasSee]

Their projects are a mixed bag, some are decent. But they always have virtually zero “altruism” to them. That is their policy and it uses that word.

[@white69cracker]

They can't do anything about loan but china built the road infrastructure they need for transportation. As I am from Pakistan china built built a world-class motorway from Chinese border to Pakistani port named gawadar they got free passage into the Pakistan which is cheaper than shipping and it is beneficial for us Pakistanis we use it all the time for LTV and HTV.

[@CanadianPrepper]

Meanwhile the USA just printed 1 trillion to fund their military. 1 trillion that doesn't exist.

[@mwfmtnman]

The US isn't doing much right either. That is what happens when you allow Corporate Oligarch to bribe lawmakers.

[@kelvinzhang2108]

you should worry more about Deutsche Bank LOL@DW

[@wrux]

They need to rename it to the Bait & Rob initiative

[@quattordicimontenapoleone3113]

Oh my god who would've thought...

[@Andysfishing]

Does China include copyright laws in its business laws? I don’t think so…

[@breadnewbie6326]

for the last 13 years chinese IP registration already more than other countries. you can easily find this fact. now, can you prove your accusation?

[@kelvinzhang2108]

of course you don't, your parents are actually related

[@kelvinzhang2108]

@Uncertainty Eclipses how can you even type stuttered

[@danielboey14]

Don’t worry about China’s banks. Worry about your own Deutsche Bank

[@AnchorsAweighNarooma]

The enlightenment of the belt & road project is paved with pot holes.

[@AcademicAnxiety]

$240 Billion between 2008-2021 ? But didn't the BRI start in 2013-2014?

[@lachen7]

Sounds like the Europeans do not like their colonies to take loans to improve their infra and economy. The Europeans rather keep the colonies impoverished and dependent upon some aid raised by musical concerts.

[@jmal1824]

balancing act, inedebtedness,(cash or help) makes the debtor beholden to the paymaster. this was part of the equation from the start, increasing interest rates worldwide moved the debts balance point

[@Llkc60]

Success depends on the original intent

[@beastmode8203]

I know our banks in the US are all messed up.

[@Bigjoe99]

B&R is not a new thing. The West did it first, then Japanese did it, to a small extent, South Korea also did it. None of them ever panned out - always resulted in losses.

[@bigfudge2031]

Argentina doesn't even have a GDP of $500b, how did you ever think loaning them over $100b was a good idea.

[@pipiqiqi4010]

if DW thinks China is put the borrowers in danger, why they don't report the EC refuse to loan money to the borrowers?

[@dennis3753]

They should nationalize all those projects

[@FutureCommentary1]

I mean the infrastructure is already in their countries. And they are defaulting. What else would you say is "nationalization?"

[@gkheng]

​@@FutureCommentary1 he meant: no need to payback at all, not just defaulting

[@trsdarrin]

Take their money and you will be their slave

[@watchman835]

Don’t you ever had mortgages? It is really about how you spend that money.

[@zeissiez]

China already forgiven unplayable debts in 24 countries, without pulling back the infrastructures. Which of your banks could do that without taking your houses?

[@CHINESE_PRIDE]

@@LancasterSupremo That's just clever accounting. Let's not forget that China put spying devices through the AU building.

[@eliso5973]

We are all slaves of US and the West, since most countries took huge loan from IMF, world bank etc. At least China gives these countries road, airports, ports, schools, hospitals, government buildings, research centres .....

[@CmdrEsteban]

It’s always darkly amusing when Chinese government officials utter the words “openness” and “transparency”.

[@boklao9699]

that's why be careful about lending money when your government can't pay you will be out of your country.

[@Jamie-nt3eh]

It's better than bailing out banks. At least the infrastructure is there. Economic value takes time.

[@levismith7444]

And in the meantime China gets access to that county’s ports and mines when until the dept is repaid

[@harmless6813]

Only the infrastructure is often _not_ there. 🤷‍♂

[@kongwee1978]

@@harmless6813 Yes US and India port mines are alway there in those developing countries!

[@carlanderson7618]

China just takes possession of that infrastructure, like ports in Sri Lanka. In some case that infrastructure is overpriced and of poor quality, like the $2.8-billion Coca Codo Sinclair dam in Ecuador. The Chinese company that built the dam used substandard building materials and construction methods including inferior welds. Part of the structure may have to be demolished and rebuilt. China uses the belt and road loan deals with corrupt governments to create debt slave states. They tired to do it with Kenya with a secret railway contract.

[@jkardez4794]

@@kongwee1978 Chinese offer bankruptcy guarantee loans!

[@liuantony638]

In China，we have a slogan: If some people want to become rich, they should build up the road firstly. After China's infrastructure is almost enough, We want to help other developing countries , and furhtermore the silk road will link China and Europe in the continent again, as has happened one thousand years ago to promote prosperity and economic develpment. China has done enough work. hopefully European people would join in and take their responsibility

[@tomhenry897]

Been giving them welfare money forever

[@livingwater888]

China should focus more to willing neighbours such as Russia, Indonesia, Bsngladesh, Laos, Cambodia . Thailand.

[@kitchens222]

​@@livingwater888 Pakistan

[@AB-fi5jt]

China is rich, the cost is nothing compared to what China has gained from it.

[@momomama2587]

Just like the IMF..

[@cy20998]

considering the fed just printed 400 billion in 2 weeks to prop up failing banks that invested into useless financial instruments and cryptocurrency, I'm gonna say the Chinese banks are not in danger just because they gave out 150 billions in rescue lending for countries that need help

[@user-ml6jb8hr4i]

Also, a important point that was missed out was this- everytime an entity defaults, that property comes under the control of China. So actually, they are buying those properties across countries. They are not losing. Not sure why this key point was missed by this channel!

[@zeissiez]

If Africa already being built with roads, railways, water treatment, schools and hospitals in the colonial days, then there’s no need for China to come to Africa and do all that.

[@CHMichael]

You have to put a sarcasm disclaimer on things like this or a few people might think you don't know what happened to that infrastructure.

[@CHINESE_PRIDE]

CCP-PLA just want to do neo-colonialism

[@zeissiez]

@@CHINESE_PRIDE Neo-colonialism is the West’s thing. Italian Prime Minister Giorgia Meloni exposed: “The CFA Franc is the colonial currency that France prints for 14 African nations to which it applies seigniorage, and by virtue of which it exploits the resources of these nations. Burkina Faso produces gold, but it is one of the poorest nations in the world. France prints colonial money for Burkina Faso, in return they demand that 50% of everything that Burkina Faso exports end up in the coffers of the French treasury.”

[@eliso5973]

exactly, more and more countries prefer joining BRI for a reason.

[@CHINESE_PRIDE]

@@zeissiez Same conduct. Different century. Call it, "colonialism with chinese characteristics" if you want. It doesn't change the paper tiger's stripes. The difference is.... what China is doing now is far worse.

[@okiamherenow6372]

What is wrong with Argentina?

[@sassyquin707]

4.5% and must be a Chinese company contracted to fulfill obligations. Japan was giving loans to developing nations in the late 80s/90s for .25%. Not sure if they required Japanese firms vs the labor force of the nation borrowing.

[@matfhju]

It is soo nice to see chinas debt trapp become a debt trap fore china aswell

[@oinamronenzaaa4923]

Usa banks are collaspe

[@edwinnote655]

Wait, wait, so is it not a debt trap?

[@SinkLikeStone]

There was used to be one bully, now we have two.

[@pumalee1997]

Western famous saying: Choose a less bad one.😂😂😂

[@lixinchen4938]

It a good example how China help developing country bringing them needed infrastructure. The West bank only pursuit profit without substantially helping to host country.

[@jacobrandall4891]

it makes me wonder why USA is caring much about African country support lately since China's had their hand in spoon in the pot for some few years now. I think it may be to bait China to go all in on economically inpheasible projects and ruin its own economy?

[@SUNNYDAY-if8yo]

Lol cheng ching

[@DSan-kl2yc]

Honestly both sound bad.

[@RosscoAW]

@@DSan-kl2yc Because capitalism itself is bad. I know, mind blowing concept. I wonder if anybodies ever wrote about that theory and praxis before. Who knows.

[@jacobrandall4891]

@@RosscoAW capitalism is a result of the world's strongest super power so let's put that silly theory to rest

[@acchaladka]

This is a fantastic outcome, if you favour development of democratic allies. I remember taking Political Economy 101 in the early 1990s and debating actively whether western banks and central reserves should take a big bath for the bad loans they'd made to develop Latin America. (Obviously, they should). Now it seems the CCP will pay for failed infra projects across the world for a generation, kneecaping the CCP which is frankly badly needed. Couldn't have happened to a nicer bunch of dictators and murderers.

[@CulturalXplorer19]

Unfortunately for you, you're gonna be extremely disappointed when you realise everything you said is nothing but wishful thinking that is never gonna come true lmao. 20 years ago, experts said china would collapse way before surpassing Britain. But we know that never happened. China is still here, and will be here, strong as usual. China has been around for the last 5000 years, and will be here as long as humans still exist. You better get used to it

[@din6675]

They are not really paying though. They are just issuing loan on top of loan. They will come knocking to collect every last cent.

[@binchen]

In China, we are waiting for the "fantastic outcome" of European banks too. Let's watch whose banks will collapse first. Heard "Credit Suisse"?

[@neothaka]

@@binchen What fantastic outcome? You sound as if China is immune to banking crises. Last time I checked, Evergrande collapsed on top of itself and cause a massive bank rush that required government interference.

[@baronvonjo1929]

@@binchen Oof that come back tho lol

[@fazlayrabbi8815]

What kind of lone western nations provide? Lone for weapons! At least China is helping the countries to build roads and bridges other mega structure..

[@Marc-.]

I don’t think it’s any of your business

[@albertteng1191]

Chinese loans carry a hefty interest, 3%. While loans from other countries like japan carrys less than 1%. Advantage in getting chinese loan is they provide technology transfer while japanese dont

[@jennyohara4011]

Well why dont they go to Japan then?

[@100c0c]

What technology does China transfer?

[@dcauninaivonarck5266]

West loans you guns and have you kill each other!

[@happymelon7129]

@@jennyohara4011 Because he is wrong😅on the Japan 12-7-2022 Britain-based charity Debt Justice: 35% of African gov debt is owed to Western lenders compared to 12% owed to Chinese lenders The average interest rate on Western loans is 5%, compared to 2.7% Chinese lenders.

[@serriajohn]

@@jennyohara4011 because the developing countries need technology transfer , the key to help themself self sustainable in the future. Also the capability of Chinese civil engineering that most of BRI projects are done within schedule is to save the cost. Developing countreis also mean opportunities, within BRI infrastructures are done, some manufacturing industry can be settled locally, more trade can be achieved among countries, therefore, it is likely these developing countries can pay back debts in the future.

[@pumalee1997]

We must see that the welfare of Western countries is high and the cost is high, so it is difficult to compete with China. What China needs now are raw materials (ores and oil and gas) rather than inflationary banknotes.🙄🙄🙄

[@StephenGillie]

China needs a way to protect these shipments, as some of them cross literally half of the Earth.

[@trfgshdtg4577]

if the West is complaining then you know it's good for the world.

[@jhwheuer]

As anytime, if a government needs to declare that it is not doing something, it is. Just like a bad bank reassures depositors of its solvency.

[@carlosalba7790]

If they all just agreed to not pay the loans back not much China would be able to do, free infrastructure 🤷‍♂️

[@daviddai1867]

If you just agreed to not pay your loans back, is there anything your bank would be able to do? You do know theres a thing called credit right? Who's going to invest or do business with your country if it has no international credit?

[@carlosalba7790]

@@daviddai1867 I understand that but this is china, no one's gonna shed a tear for Beijing getting played by their own debt trap game.

[@Andromeda365]

​@Carlos Alba you are so naive. Sri lanka had to restructure its debt from china before it could get the last bailout from the IMF.

[@evans9303]

On the contrary many of these nations would like to continue working with China. They know even if they run into difficulties ( which is natural and expected) in paying back the loans , China will sit with them and restructure the loans because China is a strategic long term partner.

[@nunyabusiness863]

It will scare further investment from others if they willfully default and essentially seize an asset. Venezuela is a prime example. Not to mention china can sanction them from products made in China, increasing their costs further. Sanctions are not exclusive to the west.

[@GM_-]

American roads good, Chinese roads bad. Lol 😂

[@sarcasmo57]

Oh well...

[@Mrac-zz8vh]

China had spend 240 billion$ on a World Wide Trade infrastruktúra, whilst Germany is spending a 200 billion euro loan just to partly compensate energy prices for it's companies and people. Which one is dumb thing? Also for which country this amount is a bigger financial risk and gambling?

[@David_Lo_Pan]

The whole world is divesting from China. The pandemic alerted us to the need to diversify supply chains. But the CCP should have to pay reparations to every country. The whole world suffered and lost GDP because of it.

[@frankfeng4728]

As a fact, nothing happened so far. Probably the idea is not sensible or feasible. I'm presuming there are others as smart as you in this world.

[@hrg5392]

Are you sure? Just as you said, Western capital is accelerating its investment in China, becoming crazier than before... a large amount of capital has fled Europe and the United States, and this money has entered Chinese banks

[@David_Lo_Pan]

@@hrg5392 That isn't what I stated. You're either being intentionally disingenuous, or you struggle with reading comprehension.

[@arfajob4246]

@@David_Lo_Pan Is wumao dude. "Sam Smith" indeed! More like "Sum ting Wong" 🤣🤣

[@breadnewbie6326]

direct investment to china is increasing, china export import surplus is increasing. you can easily find those two facts. which the exact opposite of what you said. you did it on purpose?

[@dannyarcher6370]

If you sleep with the dogs don't be surprised when you get fleas.

[@mubarickmusah9486]

But Chinese bank is not collapsing but European bank's is collapsing what makes it collapsing

[@cinpeace353]

The amount probably way lower than China US bond holdings if loss are capitalized. It is a good way to help developing countries while diversify the portfolio.

[@minshyu]

I guess DW does their research on the wiki. China holds 1033.8b U.S. bonds. Do you really believe that a loss of billions will collapse China's banking system.😂😂😂

[@Sean-giang]

The us can print more money to depreciate the bonds or if the usd doesn't do well the bonds china has are garbage