The Gatestone Institute international policy council questions the so-called debt traps with which the Chinese Communist Party (CCP) grants loans to poor countries and then permanently entraps them.
“A few of these bilateral packages appear contrived to imprison already impoverished states into realms of permanent economic vassalage to China,” the institute said on Aug. 28.
“The economic benefits, however, of some of these deals between China and poor third world countries in Africa and Latin America are questionable,” added the institute.
The CCP is using the Belt and Road Initiative (BRI) for strategic, political, and economic purposes to make countries dependent, changing the established democratic order for one “dominated only” by the CCP.
Although the BRI was originally designed to boost trade with Europe, the Chinese leader Xi Jinping oriented it toward economic aid for all countries along the route, to later jump to many other countries outside of the initiative.
In addition to achieving economic dominance, the CCP would obtain the silence of the debtor countries in the face of the terrible human rights violations perpetrated by the CCP.
As other examples of subjection to the CCP, the Gatestone Institute cites Sri Lanka, which ceded the port of Hambantota to the CCP when it failed to make payments, and Venezuela, which trades goods and services for oil.
A similar case is Ecuador, which by 2014 was already exporting 90% of its oil to China, perhaps at a lower price than the world market. In this country, hundreds of Chinese fishing boats violate marine life near the Galapagos Islands.
Relations with the CCP are not only disadvantageous for developing countries, given the case of Australia, which has been a victim of CCP retaliation. Here the CCP suspended its purchases of grain and meat because of Australia’s request to investigate the origins of the CCP Virus, which appeared in China.
Australia, which is part of the BRI, seeks to break the multimillion-dollar commitment signed by the State of Victoria that includes hundreds of other agreements, according to The Australian.
For Australian Prime Minister Scott Morrison, these agreements interfere with national security.
Tanzania also decided to cancel a $10 billion loan with the CCP, commenting that with those conditions “only a drunkard would agree to the terms,” said President John Magufuli, according to HW News.
The loan was to be used for the construction of a port, with the condition that the investors obtain a 30-year guarantee on the financing and 99 years of uninterrupted leasing.