When China plugs BRI loans as strategy & 138 nations tot up $385 Bn debt off balance sheets

#CutTheClutter #ChinaBRI
A startling new research report, 'Banking on the Belt and Road', gives out alarming ‘off balance sheet’ debt figures owed by the poorest countries to China. Shekhar Gupta digs into world's hidden loans worth $385 Billion to China as debt turns into a strategic weapon, and highlights other important points from this comprehensive report. Episode 848 of CutTheClutter.
Additional Research by Sukriti Vats and Amogh Rohmetra
Brought to you by ‪@KiaInd‬
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Read the full report here: bit.ly/3l98s0Q
Watch ‘How much money does the world owe China? | Counting the Cost’ on Al Jazeera here: • How much money does th...
Read ‘$385bn of China's Belt and Road lending kept undisclosed: report here: asia.nikkei.co...
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[@ThePrintIndia]

Early access, exclusive content, special privileges - Discover the great benefits of being a Member of ThePrint’s KZbin channel. Take a Paid Membership today. It costs just Rs 159/month. kzbin.info/door/uyRsHZILrU7ZDIAbGASHdAjoin 20

[@mrblue3946]

Same innocent farmers lynched people. Its normal for farzi farmers to lynch. 🦟

[@Tacit_Tern]

Considering that both the World Bank & International Monetary Fund have accused CCP of Currency Manipulation; I don't believe anything related to China is going to be doing well, because they are refusing to allow for an audit ....meaning sanctions are likely, and further devaluation of the RMB. It's one of many reasons Companies like Foxconn and H&M are Divesting and moving manufacturing elsewhere.

[@sanjanakale594]

7

[@trumpfuckbidentrumpfuckbid4859]

Lol china debt is 57trillion us dollar more than america debt at 45trillion us dollar, not even imf, world bank, adb, eu central bank combine can bail out china if that happened🤣🤣😂😂

[@vethanayagamthangarajahkan1524]

@@mrblue3946 ⁰⁰⁰

[@prasoongupta12]

I have a feeling that next CTC might be on Pandora papers.

[@lukshyaverma8857]

Really looking forward to it! There is a lot of clutter in that story that needs to be cut.

[@Vibranium603]

Yup, correct!

[@mrblue3946]

It would have been if modi name came in it.

[@pichumanisankar2617]

@@mrblue3946 -- keep 😴

[@trumpfuckbidentrumpfuckbid4859]

Lol china debt is 57trillion us dollar more than america debt at 45trillion us dollar, not even imf, world bank, adb, eu central bank combine can bail out china if that happened🤣🤣😂😂

[@shankarahul]

cracked me up :D - "don't compare average borrowing cost of countries with what HDFC is charging you for housing loan"

[@nandi7772]

😂

[@smritimoyhalder605]

Also "Two slap" Theory😊

[@janvysatya6595]

Hdfc looted me

[@nandi7772]

@@janvysatya6595 kya hogya hamne bhi HDFC ka house loan liya hai

[@janvysatya6595]

@@nandi7772 if you miss emi they will put too many charges

[@tron8421]

3.76%!!! Compare that with Japanese loan interest for DFC & expressways projects in India.. 0.1%

[@kishanmundra9167]

And add to that, dollar fluctuations... Pakistani rupee is already about 50% down in last 2 years

[@amarnathkrishnan6382]

Japanese loan interest are good but not as good as 0.1 % suggest. Remember their economy is almost stagnant from 1995 with economy sometimes getting into deflation. While India is having 6% inflation, after 15 years with yen to rupee losing its value, We will end up paying a lot. Lot these loans are pegged to what central Bank of Japan decides with rates going sometimes in negative territory. End note : these terms are ok, but not as great as government did publicity for. And these loans are restrictive in nature... One cannot have global tender for the high speed train... We will have to go for only Japanese one.not they are not good. Just that during single vendor.. Price can sometimes get bit inflated.

[@ayushacharya972]

@@amarnathkrishnan6382 Of course, every government has its hand in propaganda. We in India do it to convince the public that this Japanese debt is okay. And Japan also plays along so that it can more easily sell this product elsewhere. But even taking propaganda into account, our terms are fine and the project shall most likely pay itself back. But Pakistan is definitely trapped.

[@tron8421]

@@amarnathkrishnan6382 There are a very few countries that have bullet trains. i think only korea, japan and china in Asia so far. We can't give that tender to China, so we have many options. I don't see why it is not a great deal... India is projected to have 6-7 % real gdp growth ( not taking inflation into account ) for the next decade. So, debt is never going to be an issue... If japan put that money in some US bond they would get better returns, so I think, Japanese loans are their diplomatic way of buying India's good in future conflicts with China, is what i feel

[@amarnathkrishnan6382]

@@ayushacharya972 yes we should be glad that it's japan ...we took loan from Japan for delhi metro and it transformed delhi. In Pakistan case only the surface loans are shown rest are hidden under different government companies , and beneath that there are high power purchase agreement all of it backed by sovereign guarantee. Even imran Khan government is worried about that, that's why they slowed cpec works and tried to renegotiate the terms. In case of loan default I don't think Pakistan is in trouble , if Pakistan owes you money then you are trouble 😂

[@LordNest66]

China lend without any condition, only higher interest rate and collateral required. That helps in politicians in siphoning off the money. Clever ploy by Chinese to let the leaders sell their countries to China.

[@gsnayak06]

So much resemblance to Pawn brokers and people who lend to village farmers. They suck blood along with debt

[@babublue69]

China's interest much lower than western Paris club and much less condition than imf and world bank

[@leemafashion6628]

@@babublue69 yes that is why they leased Hambanthota and Baluchistan for many years. Hopefully india also lease kerala to China.

[@Tacit_Tern]

BRI is a Weapon. ....make no mistake.

[@MrPoornakumar]

Lord Nest You've uncovered the essential secret in the deal. Yet several million others should also discover it. Modi was shrewd enough to find it out. In fact his attention was to pick a bone of contention with PRC & this served as a tool. However in the 2017 first OBOR (Oh Bore) conference India chose to turn down (the only invitee country to do it) the invitation & turn down the US$ 81 billion loan offer as part of it (again, the only invitee country to do that & the highest amount offered for a country). It losened an important bolt form the OBOR structure or edifice that now stands shaky & might collapse even. This act hasn't been appreciated for its potential, by most. Modi who did that administered a reverse slap by taking a Japanese loan & help to build Mumbai-Ahemdabad express railway (partly under sea) that put paid the Ch. boast & gloating over its hyper-claims in regard to infarstructure engineering. India needs to maintain the stance as well as develop her own talent & capability in infarstructure engineering. India does it already & is about to show-case her prowess in building the tallest railway bridge (over a big river) in the world and also the highest railway track (& station) in the world. India can feel justifiably proud of it with her engineering practice, can show to the world what is 'Relaibility'. It is a pity that other smaller South Asian countries have succumbed to Ch. baits & allurements.

[@binylk]

Nicely researched show by SG always,even sri lanka episode was good Pl do such research on indian financial system...can help citizens awareness

[@maverick193]

Gambino reference was perfect. Reminded me of the Pandora papers leak

[@hpremjit]

'Loan shark' is the word/phrase you are searching for.

[@FRIPPE_THE_GREAT]

Considering how corrupt many of the states are the political elites has probably filled their pockets. Leaving the debt to the countries to fix... It really is colonialism 2.0

[@user-rh5jp2sh4s]

@@FRIPPE_THE_GREAT Well a simple question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials. Why don't they do that....

[@rohitw614]

If I have 5 Trillion dollars , who the fuck cares what world calls me 😂😂😂 lone shark or no lone shark😂

[@ThePrintIndia]

Haha....runs close. Thanks for watching Premjit and writing in. Take care -Shekhar

[@user-rh5jp2sh4s]

@@aosaeanor Well if that actually is a concern for Western/developed countries are sincere, they could buy of/ re-finance these loans at lower interest rates which would reduce the burden of these developing and also curtail China's leverage. But sure then the Western/developed countries would have the risks of these big loans in there books. Bottom line is what commitment countries show in walking the TALK.

[@manojvukkem2318]

This is why I love sg sir's analysis really interesting, engaging and something that not all newspapers cover. Sadly I'm still just a student and can't afford the membership. Hope you keep this good journalism everytime.

[@uv28]

Omp

[@ashwinb6435]

Time for your pocket money going to SG

[@PA-hf7gy]

We don't like secular people.

[@_M_D_M_]

Can't afford a membership? You might want to save elsewhere and invest here. This is value adding.

[@trumpfuckbidentrumpfuckbid4859]

Lol china debt is 57trillion us dollar more than america debt at 45trillion us dollar, not even imf, world bank, adb, eu central bank combine can bail out china if that happened🤣🤣😂😂

[@fayyaznoor1962]

It is the most enthusiastic builder around the world, and those who need loans for this get it from China at very favorable rates. Please check with African countries.

[@sangramkale3375]

Next story should be in semi conductor industry

[@sangramkale3375]

I have been following you since years, I haven't heard you on this issue SG

[@sirantisocial9681]

No

[@007DEVESH]

And Indian people are made to believe that we will become a VISHWAGURU 😂😂

[@priyanshupandey2670]

Hota h kabhi Kabhi... Actually bohot baar

[@ThePrintIndia]

Haha...tnx for watching Devesh. Stay tuned for more...keep well. -Shekhar

[@shivamchowdhri]

19:37 - nice acting sir 😂👍

[@syedsali5960]

A highly complex subject .Yet presented by Shekhar in such ‘an easy to understand’ way. Hats off

[@mrteacher1315]

Most of the loans are made at interest rate b/w 0% to 3% with repayment period ranging from 20 to 30 years. Hundreds have being forgiven and existing loans have being renegotiated well over 80 times. Deborah Brautigam did a very good coverage of this in The Atlantic titled "The Chinese ‘Debt Trap’ Is a Myth The narrative wrongfully portrays both Beijing and the developing countries it deals with."

[@amanshukla8758]

I love these episodes that have lots of data and statistics. Much appreciated SG 😎👍🏻

[@mujtabaiftikhar3474]

I don't think the rate analysis is wrong. He is comparing WB or IMF rates not commercial lending against Chinese debt, which Pakistan has opted in past.

[@elsoai]

We need to accept the fact that China is unilaterally rewriting the rules of engagement and no other country or coalition has the wherewithal to compete. Who’s having the last laugh? Everyone’s becoming indebted to China and they get to have the natural resources as collateral. The old rules don’t matter anymore. Blue ocean strategy - change the game if you are not part of the game. We are complaining with no effective challenge.

[@junkscience6397]

Blue Ocean Strategy? LOL. A Blue Water Chinese Navy is at LEAST 25 years away...but in the next 10 years, DEMOGRAPHICS, PROPERTY BUBBLES and DOMESTIC CHINESE DEBT are going to destroy China from within. We just have to withstand China until then. Don't trust me? LOL. Just ask Soviets how "rewriting the rules" went...oh, wait, nevermind! LOL.

[@GiggityGig]

@@junkscience6397 well, for a start China is not Soviet Union. In a conflict with a formidable enemy, western countries, particularly the US of A, shouldn't underestimate it's enemy and I am quite China would want it's enemies to think China is weak. Remember when MacArthur dismissed Chinese as "a bunch laundrymen." They would certainly want us to behave recklessly and get drunk in our collective hubris. Hey I am not supporting CCP. Just telling you a fact about the danger of getting too overconfident.

[@daudkhan4218]

@@junkscience6397 Lol china is no soviet union and it will never go down yes some day it will but so will other nations but for now or future it wont because usa than more countries wont allow it even if it goes down it will take everyone down because every country is connected to it!! Usa and China shows all this media bullshit that we are going to war etc just to fear people thats it nothing else

[@roro4787]

Infrastructure promotes the economy, so when a country takes a loan from China, it's their responsibility to utilise it well and pay it back. It's the same as like let's say taking a loan from SBI, the bank gives me a loan to do XYZ, but it depends on me how I utilize that money and grow, later payback. There is no free lunch.

[@AmitRaj-wt1kg]

But infrastructure must be build by chinese worker material equipment

[@roro4787]

@@AmitRaj-wt1kg yes! but for the people of the country who owns it, if they build a rail in Ethiopia, Chinese don't use it, its ethiopians. Chinese workers and companies are fast and efficient so if you want to build a dam in Africa or other countries with less skilled labours you really can't rely on local skills. Even German. French and American companies do the same, if you look up on the website.

[@mukulthakur2861]

@@roro4787 most of the Chinese loans have no trasperancy. Independent think tanks, local bodies and press don't know what are the reals rates they are charging. China is a authoritarian communist regime they don't care about trasperancy, diplomacy, fair play or trade rules. I haven't seen any other country who take over the whole project when loans are not paid back. China already know which countries can't repay these loans and are easy targets. If you look closely this is the same thing that Britishers did to India. They build trains, so called courts, infrastructure etc. for us but in reality they needed it so that they can exploit our people and our resources more efficiently.

[@ashokbhagat2231]

@@roro4787 : Those railways with no passenger base, roads without cars and trucks, and development of port and airports, is unneeded expense, countries cannot afford it. loan forced upon a country by corrupt leadership who have been bought by China. My neighbor is from Zambia. says Zambia is 35% owned by China. besides loans China bought up lot of land and other sources. how? by bribing Politicians. Just like they tried to do through CCP Congress party secret agreement. Many African and other countries can barely use the assets that have been created. What happened to Sri Lanka, built a port with no traffic. SBI lends money and sees whether their is a viable project, and not plan on taking away your bedroom. Why you must make silly comparisons. "Even German. French and American companies do the same": Completely false argument. USA and France do not have enuogh manpower for themselves. You mean Marshall plan was carried out on American labor. What nonsense.

[@ashokbhagat2231]

@P Pierre : Crooks dressed as Capitalists.

[@zenben7727]

Very well articulated and easy to comprehend.

[@lancelotwilson5761]

Part of Afrika's biggest problem is that too many of the so-called leader can't recognize that their mineral resources is not the key to development.

[@vivekmundra2313]

Nicely articulated. It looks like Chinese are the next East India Company

[@sosoable]

It seems that Africa is developing better than India

[@user-rh5jp2sh4s]

Well a simple question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials. Why don't they do that....

[@sosoable]

@Weed Farmer China is a superpower. What projects are not feasible. Only Indians can't do it. Don't question the ability of the Chinese 。.As long as the Chinese invest in projects, they will succeed.

[@sosoable]

@Weed Farmer Among the top ten ports in the world, Chinese ports account for 8。。Don't trust India. India has no successful business case.

[@user-rh5jp2sh4s]

@Weed Farmer Again was not my question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials or other collateral... Why don't they do that if they are sincere in under cutting China. Why don't they walk the TALK...

[@user-jc1yz4qn2z]

Next ctc on crimes and police reforms. Please

[@Kudupa]

All this explanation comes down to 2 single words, The Great "Chinese Loan Sharking" Business. There I said it.

[@myvideos4789]

R. I. P. English & Maths

[@amitabhabanerjee11]

@@myvideos4789 Lol. Mirchi

[@rohitw614]

If I have 5 Trillion dollars , who the fuck cares what world calls me 😂😂😂 lone shark or no lone shark😂

[@kokovin6808]

Nothing wrong to that. If you sit on top of a huge pile of money with nowhere to spend, lend out to other countries in exchange for their commodities.

[@Kudupa]

@@kokovin6808 yeah like what East India companies of different countries did right? If you don't understand what's wrong with your statement then, you won't understand geopolitics or consequences of Chinese actions are.

[@manas0211]

Now I don't see a permanent seat for us on the Security Council coming anytime soon. 😔✊

[@-VAJRA-]

Did you see us getting a permanent seat earlier ? 😂 We will never be a permanent member !

[@gunjaneighteen]

UN is a sham. Just a body with no arms, legs and a head.🤣

[@ThePrintIndia]

Okay Kalpesh, thanks for writing in your suggestion. I will try to take this up in the nearest possibility...stay tuned. -Shekhar

[@metagde6402]

@@SV-wu2my they themselves shut the plants down. It was voluntary thing It wont budge the Chinese economy at all. The power outage happened in first place cause too much demand for chinese products. Just search up any media bout how their exports increased historically months ago

[@trumpfuckbidentrumpfuckbid4859]

Lol china debt is 57trillion us dollar more than america debt at 45trillion us dollar, not even imf, world bank, adb, eu central bank combine can bail out china if that happened🤣🤣😂😂

[@akshaybhardwaj1113]

I very happy to watching you video that bring to us. You vocabulary is very fluent and Sharp I watch your videos to enhance my English vocabulary. Thank you SG to your efforts for real journalism.

[@kalpeshsanghvi5901]

SG.. Need to clutter Pandora papers specially Kiran Mazumder Shaw Sachin & Anil Ambani

[@pedrocoentro2009]

Very well made videos. 👏 informative and entertaining. Compliments from Portugal 🇵🇹

[@maths4843]

I’ll recommend a some what relevant book “Confession of an Economic hitman by John Perkins”

[@lordpinus4599]

Difference is China isnt using jackals to overthrow governments and causing unrest.

[@jithinv8794]

@@lordpinus4599 Why should it when the sane govts are borrowing to death? Its only when someone says that they will not repay, thats when Liaoning and Shandong super carriers will visit you. Until now, everybody is paying or are letting chinese extract things at cheap cost. Oecd is also happy as this inturn makes products cheaper as raw materials are cheaper. In Short, west outsourced colonialism

[@smoothoprk]

@@jithinv8794 That’s truly cutting the clutter!

[@pamtam1]

@@jithinv8794 you have made a very striking point 👍

[@nunpuiisingson298]

@@jithinv8794 I feel stupid can’t comprehend what you are saying, hopefully I will get the hang of things of things with time

[@rajendramirji5830]

Excellent analysis which even common people can understand. Kudos to you Sir...

[@asitdebnath]

China is not bad. It's smart. This is the definition of smartness.

[@sshray1115]

Awesome 🔥 7:10 Sovereign Debt Obligations

[@konceptsofphysics]

Wow Sg ! man ...it was worth listening ...perhaps the best to understand geo politics and geo economics

[@naeaf]

China also owns a lot of US debt.. a disturbing amount. Why isn't that in the last. That has been a concern for at least 7 yrs now

[@xtinxn]

They're probably betting on USA to deliver the promised returns and it probably makes the biggest share of their lending portfolio ...... much like you would put less money in stocks and even lesser in crypto and a significant amount in safer debt instruments.

[@2010sunshine]

Very nice simple explanation by SG.. 👌👍

[@anuravjain]

A story from 2016-17, China was interested to lend to urban local bodies/ municipal corporations in India just with a state government guarantee. Few Indian state governments were considering the proposal. However, thanks to strong institutions and processes in India; states did not proceed with such a guarantee without approval from central government. While China invested a lot of funds in getting those projects moving ahead, DEA, Govt. of India did not agree.

[@ThePrintIndia]

Thanks Anurav for watching and sharing this with all of us. Pls do keep watching and writing in. -Shekhar

[@vikramjain1353]

Thank God Modi Govt did not join BRI. You can imagine what would have happened , had any other Govt been in power. They give kick backs in private bank accounts. No BJP ministers name has come in Pandora papers so far.

[@keertisurana511]

Petition to have a separate channel where all of SG ji's jokes that don't make it to the final cut are uploaded

[@rockstarofrockstar]

1000 billions makes a trillion @shekhar Sir! the total debts amounts to approx 13% on indian economy!

[@avrajitsarkar8563]

More than half of India's forex really worrying

[@naeaf]

India's economy is 2.5 trillion usd. Not wrong.

[@IndraRaj14]

Any comment on Maldives it’s also having 40% as off book.

[@fajarliong]

A few questions, Sir: 1. Who funded this research by Aid data for 18 years? How much is the funding? 2. You mentioned Venezuela being sanctioned and high% of off balance sheet due to this? Would you explain the reason Venezuela being sanctioned? What sins they have do the world? 3. Given Venezuela is sanctioned, poor, what alternatives do they have? 4. Given China loan interest is 3-4 times compared to OECD, why countries want to take China loan? Would be great to hear explanation behind it. Everything takes two to tango :)

[@zeher0015]

I love your journalism sir. Though I disagree on many points, but you present them beautifully.

[@narayanant2966]

Now we know from where the previous FM of Kerala got the KIIFB idea. Credit rating of Govt is bad, so KIIFB takes loan from various sources and the Govt is guarantor

[@comentedonakeyboard]

Lehman Brothers also loaned a lot of money, to a lot of people. The dificulty started with the repayment, or lack thereof.

[@mikeliu5201]

Anyone is supposed to pay back their loan. If india has a different logic, then simply leave AIIB! India is the major borrower in AIIB, and the majority of AIIB fund are from China.

[@whataboutry]

Topic here is off balance sheet loans. If you dont have the aptitude to understand, please avoid commenting. There is something called responsible lending, which China obviously has thrown out of the window for dodgy reasons. Not everyone in the world is a subject of emperor Xi Jinping that he/ she will toe the line and shutup

[@mateusmahumane8990]

China should send students to India to study economics. No doubt India will soon surpass China

[@cvsarat]

Did India in hindsight was smart enough to calculate China’s overtures and managed to shoo it?? Remains to be seen how it handles the trade imbalance. A word or two about India might have enhanced the Indian resolute/implications in this CTC as economies have a symbiosis.

[@mousencounter]

India international trade count minimum percentage

[@shubhamsagarsingh9451]

Yes

[@Joaocruz30]

I don't understand your surprise the USA does that same thing since the WW2 and Marshal Plan and also when the dollar fell from being a Fiat currency. And don't has its value in gold. You say that because you hate China. Now do your subscribers a favor and tell the truth please! Greetings from PORTUGAL

[@lokeshgowda7783]

@ 21:50 Guptaji let the cat out of the bag. “I don’t read serious books, I read only funny books”. Not to worry Guptaji, some of us who don’t take your rants seriously already knew this😀. You don’t need to be a rocket scientist to figure that out! I remember you had recommended seeing a Netflix show about the affairs in Iraq with the ISIS suggesting that it’s a documentary while it was a work of fiction wah wah 🙏🏼🙏🏼. Yet, day in and day out you come out and give your “beautiful” assessment of things varied from cricket to geo strategic affairs. Really must admire you for it 👏👏👏

[@naiyayika]

They've been buying our neighbours and encircling us for quite some time. Pakistan is their maid, Sri Lanka is also on it's way to become one. Bangladesh will be the third. Hopefully, Real estate and demographic bubble will finally topple the never-toppling economy.

[@ramonng7054]

$385 billion is peanuts to China...it is not worried, why is India??!! better loan it to poor countries, than buy up worthless American treasuries...that is why since 2012 it had been spending all its $1.4 trillion holding in its BRI infra projects..very smart and preemptive.

[@swahareddy8822]

Great video as always! :D

[@potnurileelakumar1214]

Thank you SG sir Novel Chinese Economics Need to learn for secured future

[@sinatra7407]

With 5 trillion lent by China, why is Pakistan begging for £1 billion from IMF?

[@mujtabaiftikhar3474]

Two different items. IMF terms are for 30 to 40 years plus interest rate around 50 basis points. Chinese debt is good for investments not covering the deficit.

[@firstsparkle5378]

I don't know why smaller countries are unable to understand "Chinese debt trap"..... They need to watch CTC

[@theanthropologist6589]

Countries understand but politicians (all corrupt) are willing to screw their country for bribes

[@Vineeth_Lifestyle]

They are not dumb as you think. It is a necessity to keep their economies moving .

[@firstsparkle5378]

@@Vineeth_LifestyleAvoiding loans at much higher rate which one won't be able to pay in future is something everyone understands..... No necessity can be greater than a country's political & economic sovereignty. Its better to remain poor than become someone's colony.

[@raymond2931]

because they fcking need the infrastructure

[@Vineeth_Lifestyle]

@@firstsparkle5378 Who are you to decide whether they should prioritize sovereignty over economic compulsions? Let them decide for themselves. Every thing has 2 sides.

[@thebatman6235]

Napoleon once said China is sleeping when she wakes up she will shake the world

[@deep-rustagi]

So, when do you plan to cover Lakhimpur Kheri incident ? When the whole country is watching it closely, here you are talking about China. Why shouldn't i consider you an affiliate of Godi Media ?

[@adityaviswanathan3606]

chal phut

[@sanjaydongre]

Excellent elaboration, thanks shekhar.

[@tyagijee]

Very well researched article. 🙏

[@tresajessygeorge210]

THANK YOU SHEKHARJI...!!!

[@kamalhossainadv9191]

Bangladesh took only 6% loan from China of its total debt. But Chaina played huge role for developing Bangladesh. Only for Chaina, Bangladesh is more develop than India. 🇧🇩🇧🇩✌️✌️✌️💯🇨🇳🇨🇳

[@pushkardeshpandemedfreak]

We owe the Japanese just 0.1% of our debt and we are in a trouble as due to price inflation in developing countries we are caught in a terrible business deal. All the economies are seem to be and try to be ignorant unaware that the price inflated debt is gonna create a lot of mess forward. Don't get into economics if you are not able to even type the name of Countries. I'm doing masters. And developed!!!Shhhh Sir per capita gdp it is and soon India is gonna overtake Bangladesh once again around 2027-29 . So focus on yourself poor advocate sir! Stay restricted to what you do the best! We have many of your brothers next to my bungalow on a building site! Love from Pune

[@Sachinrenjal]

8:35 Pakistani never in life repaid normal debt, then question of off balance sheet will never come. Infact Pakistan will ask "China kon hain tu?, We don't owe you any money"😂😂

[@avatarkharna6095]

WHO CARREEEE CHINA MONEY STRONGER AND STRONGER USA MONEY WEAKER AND WEAKER

[@jaswindersinghnarula4379]

China is the "Sukhi Lala" of international market... LOL!

[@rks06]

😝😝

[@MinhajAhmedAnsari]

So, China is running a parallel shadow economy and the collateral is a basket of most sought after commodities. And even if that fails to work out they can always assume the ownership of the asset as they have done now in Sri Lanka. Do they actually want these countries to fail to repay, since they are charging them so high interest? Is it the resources and assets which they are actually after? Is this a strategic move which is looking decades into the future? Food for thought and Pretty good idea for next James Bond or Jack Ryan Movie. 🍿

[@sulemancharania7027]

China will have to pay very high price for this .if any govt change in Africa it will refuse to pay true to their character.

[@pushkardeshpandemedfreak]

@@sulemancharania7027 Then the Chinese will come with happy faces and take mountains and Plateaus to dig it for uranium, silicon and Copper until whenever they like with the politicians realizing the reverse uno very late !

[@pushkardeshpandemedfreak]

@Gagan Sagar LOOL why isn't it if you owe them 10-13%... You are in no position to even negotiate... Remember Sri lanka!!

[@ThePrintIndia]

Haha does make for a good movie script....keep watching for more to come. Tnx for being there. -Shekhar

[@trumpfuckbidentrumpfuckbid4859]

Lol china debt is 57trillion us dollar more than america debt at 45trillion us dollar, not even imf, world bank, adb, eu central bank combine can bail out china if that happened🤣🤣😂😂

[@nav5801]

I don't trust al Jazeera

[@nandi7772]

Japanese lend us at 0.1% but because they dont have inflation so its still good deal for them.

[@user-rh5jp2sh4s]

Well a simple question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials. Why don't they do that....

[@igormurzilkin1016]

Why do you drag Russia into this ? Russian finances are in decent shape. Foreign exchange reserves are in excess of $600 billon . Chinese lent some money to Russian oil companies back in 2014 as Western banks were forbidden to finance Russian oil/gas industry by US govt. The loan went to exploring new oil/gas fields and building pipeline infrastructure. Future oil/gas supplies are collateral. It is a win-win.

[@umerrashid4940]

BRI dwarfs the Marshall Plan.

[@dannyhughes4889]

Too interesting and frightening.

[@kapiltewari1562]

Next on power crisis in China

[@randelr8638]

India also may go to a power crisis ...there is a shortage of coal in India..we should be aware and concerned

[@ArghyadeepPal]

@@randelr8638 I read somewhere the coal India imported from Australia is stuck at Chinese ports or so..

[@hpremjit]

@@ArghyadeepPal sounds like it's logistically impossible as there is no China on the way between India and Australia.

[@rohitreddy3980]

@@hpremjit india is buying up cheap australian coal that have been stuck at Chinese ports as china despite the power crisis its facing is refusing to buy Aussie coal because of the fear of loss of face owing to the current poor diplomatic relations with Australia.

[@pattprod]

Correction: OECD was founded in 1961, not 1948.

[@user-rh5jp2sh4s]

Well a simple question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials. Why don't they do that....

[@rohitreddy3980]

Its simple, chinese state owned financial institutions give loans to the borrowing country irrespective of their past repayment history & its current or future ability to pay the loans back , its human rights records , structural stability of the economy ,the countries forex reserves etc. As independent financial institutions subject to intense auditing, financial institutions such as IMF, WORLD BANK, JICA (japan international cooperation agency), ADB are more cautious to whom they are lending to in order to reduce bad loans & induce transparency to their practices. Chinese banks on the other hands are economic extensions of the chinese govts geo political objectives so to speak so they ask way less questions when lending which of course are subject to the borrowing countries collaterizing their resources.Therefore the loans are processed way faster owing the centralized rule in China compared to way more checks & balances in other countries. Additionally the chinese along with credit they give in hard cash also offer most of the loans in the form of flashy infra projects that whilst being economically unviable in these countries neverthless guarantee significant political gains to the host countries governments.If the host country usually gains both economically & some significant tech transfer or skill development from these projects than they should not face problems in paying the debt, however most of these projects are awarded to chinese companies who mostly bring the surplus labor force they have back home & engage them in these works ,whilst this guarantees faster construction times due to the scale & expertise chinese have achieved in this field it also means that significant portion of the money spent on the project goes back home to china instead of contributing to the local economic growth thereby perpetuating the debt cycle as the host countries simply service these projets instead of learning from them. History also acts as a primary factor in these countries borrowing practices , most countries that borrow from china are young countries who have been Ex colonies of europeans or americans & have populations owing to that historical baggage still share some degree of antipathy towards the western world ,this consequentially translates to popular resistance to borrowing from Western controlled financial institutions, chinese on the hand do not bring any sort of that baggage so its politically easier to take loans from them. To conclude there may be many reasons why countries take loans from china however the clinching factor has been the speed the loans have been processed & the effective Chinese PR in selling fantasy projects that appeal emotively to host countries political agenda whilst not necessarily being useful to them.

[@rohitreddy3980]

As to why no western countrie do what the chinese are doing today is that they are democracies with governments that govern populations that have grown up comfortably with human & environmental rights as a given. As such engaging debt trap diplomacy & doing the dirty work of mining resources that they did durimg age of imperialism might not be saleable during elections in these countries, it also significant loss of soft power for these countries & brings about white guilt in these countries. Theres a reason why china established a chokehold on rare earths worldwide. As a young republic they are extremely ambitious to be a leading power again & thus had the foresight to understand gaining leverage over these resources was absolutely essential in securing a lead in future technologies, they also never gave 2 hoots abt environmental norms & human labor norms in both their own country & host countries as such they could mine these resources at significantly lower price & time.

[@user-rh5jp2sh4s]

@@rohitreddy3980 You mentioned IMF, World Bank, and ADB all are directly financed by western/developed states and they are represented on their boards, so to argue that they are private thus risk averse is incorrect

[@user-rh5jp2sh4s]

@@rohitreddy3980 Well if you take the leading Western power the USA. Only in the past two decades it fought war in Multiple middle eastern countries( ofcourse there also more further back in time in different regions). Surely that is a classic example of what empires do. Even though that might have been a subject in the elections and even having different parties in power, the policy of the STATE of regime change wars remained irrespective of which party is ruling. By the way many of these regime change wars were conducted in oil rich countries like: Iraq, Libya partially Syria. So to argue that it's Moral considerations which hold back of adopting the same policy of China with respect to loans simply doesn't make sense.

[@user-rh5jp2sh4s]

@@rohitreddy3980 The video also mentioned aid payments. Many of the aid payments of western countries are conditional which directly benefit given companies, contractors, NGOs. In that manner a substantial part of the money flows back to donar countries. So it is also in the same way as in China's a hidden way to subsidise ones own economy. So again why don't Western/developed countries adopt the same policy of China with respect to loans..

[@mallikarjunpatil7816]

Hey Print In description you have written 385 million please correct it to 385 BIllion.

[@debabratabanerjee7461]

It is true that being Indian it is normal to bash China. But no one talks about USD 28 Trillion debt of US. It is not if but when US Dollar collapses is the question.

[@justsain3236]

"137" countries with $323 debt. Pak stan alone with $62 billion debt 😂😂

[@mm2102]

wait, didn't he say that Pakistan somewhere has around 8% of its GDP as a debt owed to Chinese, which means $300 billion(pak GDP) * 8% ~ $24-25 billion ? Or am I missing something

[@jkuang]

You can laugh all you want. But Pakistan will have much better infrastructure at the end. And it will be the major hub that connects China, Central Asia and Middle East.

[@patmclaughlin107]

@@jkuang Yes, great for Pakistan. Pakistan will become an economic superpower with all that infrastructure.

[@seventhuser904]

The Stan of all Loans ;)

[@jirik2435]

@@jkuang and Indians will have one more item to be jealous about.

[@hubertfernandes1751]

Kudos to Aid Data for such a comprehensive study. China has strategically blocked all natural resources for its economy and in the long run world will see its impact. Sort of East India Company of 16th and 17th century.

[@user-rh5jp2sh4s]

Well a simple question. Why don't Western countries give loans to developing countries on the same huge level as China, especially for large infrastructure projects. They could cut out China by offering lower interest rates especially to countries with weak credit ratings and an unstable environment. In return they could also secure future deliveries of raw materials. Why don't they do that....

[@anup7568]

Excellent research and analysis! And China as usual knows how to keep itself in business one way or the other!

[@mrteacher1315]

BRI loan is actually modeled on Japanese loan made to China during 1970s. Most of the loans are made at interest rate b/w 0% to 3% with repayment period ranging from 20 to 30 years. Hundreds have being forgiven and existing loans have being renegotiated well over 80 times. Deborah Brautigam did a very good coverage of this in The Atlantic titled "The Chinese ‘Debt Trap’ Is a Myth The narrative wrongfully portrays both Beijing and the developing countries it deals with."

[@P.B...]

British Empire had the Commonwealth. The CCP has created the CommonDebt. C'mon CCP! Even when taking over the world, can't you show some originality?? 🙂

[@parvadhami980]

It's a Chinese thing how can you expect "originality"?

[@ThePrintIndia]

thanks for watching and writing in viewer....stay well -Shekhar

[@nakshatraroy7442]

AidData research concluded the BRI was "not a grand scheme to build alliances", as is sometimes portrayed by Beijing, but rather China "hunting for the most profitable project.

[@mm2102]

LOL What is new in that, everyone is stating the obvious for such a long time now.

[@shahuni]

That is too sweet use of language. What it is hunting is the chance to buy the country with resources. It's British Imperialism 2.0 without the East India Company!

[@nakshatraroy7442]

@@shahuni No. BRI was and is a bad business scheme. It is a hugely failed project. Basically, no poor country has any intention of repaying the loans. As a result 10 of the 12 largest Chinese banks that loaned the overseas money are in deep trouble. Bottom line: China is not going to get her loan money back. High interest rates, unnecessary roads & developments, economically not viable projects that will not be profitable even in a Century - all doomed BRI. Those politicians who first approved it (examples Pakistan & Lanka) took big bribes and looted & embezzled much of the loan money. Then they left power. New sets of politicians who came to power are now left with repayment of all the loans but no sweetener bribe - and they are not going to pay the loans back. They all are crying for 'debt forgiveness'.

[@shahuni]

@@nakshatraroy7442 But as SG said, China knows that the counties will not be able to pay back these loans and then they know to extract value out of this situation. They either take over strategic resources or just declare themselves the owners of the place. Most African countries are going to become colonies of China and it seems unfortunately no one can stop them.

[@nakshatraroy7442]

@@shahuni No. Local politics in those poor countries will never ever allow that. All China could get is some of their votes at UN or some cheap commodities or may be access to some of their markets like 5G. Nothing more than that and certainly not worth a Trillion. Taking over a country is so complicated that it is beyond the capacity of any country in today's world.

[@surendrabarsode8959]

Shekhar seems to be a simple God fearing guy!! If Chinese are smart, what makes Shekhar think that these so called poor countries like Pakistan or Laos are not smarter? Sovereign obligations can always be repudiated in future. China can do whatever it wants and nothing will happen. After a few years, we will this spectacle in Pakistan!! Will Chinese take over CPEC road and run it? Will they run the power plants build by them in Pakistan? Who will mine say copper and ship it out of any country? In due course, a country defaulting to China will have its rating upgraded by one notch!!! So long as everything is going fine, it looks fine. So let us not bother too much; these loans will be finally written off or reworked or simply turned into grants!!

[@kittyss2371]

Did I miss Malaysia!?? Im surprised Malaysia not in the list..what a sigh of Relieved!! ☺️

[@pradeepmanoj9565]

Sir, please talk about Indian debt. Don't divert the public... Come with a solution for RSS ideology led BJP Government.

[@himanshu54365]

Beautifully explained what is known as “Sugar daddy Diplomacy “.

[@RationaleThinker]

Shekhar & his team trying to decode complex geo politics foreign news in cut the clutter Meanwhile Godi media be like : “Deepika, Deepika . . Kya aap drugs leti ho?”

[@sahibkumar1310]

a really good cut the clutter episode sir! i thought you are going to bore us with farmer issue today we want little bit light on chinese violating airspace of taiwan and why china have suddenly decided to militarize himalayas . and offcourse cut the clutter episode on padora papers and panama papers

[@vinody]

Haa! Solution: 99% haircut!

[@parthadutta3602]

If as a borrower I am paying higher interest rate with respect to my income, then I am doing business for my lender 😆

[@mrteacher1315]

Most of the loans are made at interest rate b/w 0% to 3% with repayment period ranging from 20 to 30 years. Hundreds have being forgiven and existing loans have being renegotiated well over 80 times. Deborah Brautigam did a very good coverage of this in The Atlantic titled "The Chinese ‘Debt Trap’ Is a Myth The narrative wrongfully portrays both Beijing and the developing countries it deals with."

[@utkarshsrivastav6693]

Please start a morning news show of 20 min or less, which could cover the all imp news around the world and of india. But do upload it before 8am as the office goers and school students can see the imp news just before going to their relevant places.

[@lordpinus4599]

So whats the problem? No one is putting a gun to these countries to take on loans. And a country can’t grow their GDP without an influx of cash to improve their economies.

[@engineerdeepesh]

Looking in hindsight, it was a master move by the Indian government to not be a part of BRI. It is to be noted that in those days India-China relations were not as bad as they are today.

[@sangramkale3375]

Thanks for book suggestion sir ji

[@vinodjaiswal7644]

Thanks

[@jnpankaj3376]

China has all plans to become kanhaiya Lal... the infamous sahukar of old Bollywood movies. 😄

[@zafarahmedbutt3899]

The Chinese thinking starts where others' ends. They are excellent business people. That's why they are even exporting more than the time before Corona starts..

[@ayushmaansingh637]

I think SG sir has left massive 25 years BRI SINO IRANIAN 400 BILLION US$ much greater than pak Chinese investment

[@mutluruvasudevan193]

Simply , A Super Economic Narrative.

[@ThePrintIndia]

Indeed! Thanks Vasudevan for watching and writing in. Pls stay tuned for more and keep supporting the channel. -Shekhar

[@byron-ih2ge]

chinese loans r basically like unauthorised private loans taken from a greedy money lender

[@Solasta_]

Just a typo: It should be OECD and not OCED as it appeared on the screen.

[@ravitoday]

Can you please do analysis on whether the boycott India initiative ( By Turkey, Pak and Qatar) is worth anything or can it cause harm to India ? Or whether this is a case of "thota chana baaje ghaana" ?

[@prachetmakwana6011]

@P Pierre Lol....you've clearly been living under a rock then

[@ravitoday]

@P Pierre I am not sure. That is why requesting more information about it. I hope this is case of empty vessels making louder noise.

[@apsu758]

Really impressive sir.... 👍👍👍

[@rannvijayghosh6308]

So why Shekhar Gupta is not doing a cut the clutter episode on Pandora Papers. Is it because Kiran Mazumdar Shaw's husband name also came up in the investigation and she is one the investor.