Category: Debt Trap
Death of the Chinese Debt Trap Narrative
Critics of China's lending practices in Africa and much of the developing world have gone suspiciously quiet over the past 6-7 months. A year or so ago, Kenyans were up in arms over erroneous reports that China was going to seize the Port of Mombasa. A few months ...
“China Needs to Increase Transparency,” says Ministry of Commerce Researcher
China's Ministry of Commerce (MOFCOM) blamed heightened nationalism, protectionism and populism among U.S. and European governments for the growing lack of trust among Africa's international creditors. "While China is actively promoting the implementation of the G20 "debt relief initiative," Western countries ...
The China Development Bank’s Debt Deferral in Zambia is a Good Start, But It’s Not Enough
The China Development Bank's (CDB) announcement yesterday that it will allow Zambia to push back an interest payment that was due last Sunday to next April was an unexpected development. After all, we haven't seen China's powerful policy banks publicly demonstrate ...
Chinese Diplomats in Nigeria, South Africa Mount Counterattack To U.S.-Led Predatory Lending Accusations
Two senior-level Chinese diplomats in Africa are speaking out against U.S.-led accusations that Beijing engages in predatory lending on the continent, or "debt trap" diplomacy. In separate appearances, Chu Maoming, the consul general in Lagos, Nigeria, and Li Nan, the deputy chief of mission (DCM) at the ...
Venezuela and the Chinese Debt Crisis in Africa
Even before the current economic crisis brought on by the COVID-19 pandemic there were widespread concerns about Chinese lending practices in Africa. The U.S. and other critics contend that Beijing is employing a predatory lending strategy where it intentionally loads up ...
From Aid to Defense to Diplomacy, U.S. Engagement in Africa is Continually Framed Around China
The U.S. State Department appears determined to ensure that everyone knows its foreign assistance programs are very different from China's. Even though the State Department didn't mention the Chinese by name in either their tweet or the accompanying article, the multiple references to "some ...
Letter to the Editor: Why China Will NOT Seize the Port of Mombasa if Kenya Defaults on SGR Debt
Hi Eric, Just caught this statement [in your September 28 column "China Faces a Critical Test": "And let’s not forget that, should Kenya Railways default on the Nairobi-to-Mombasa SGR loan, there's always the Port of Mombasa that serves as collateral"] ...
Debt Trap? Nah, We’re Too Disorganized For Anything Like That Says China’s Chargé d’Affaires in Nigeria
China's Chargé d'Affaires in the embassy in Nigeria, Zhao Yong, provided an uncharacteristically frank rebuttal last week to the persistent accusations that Beijing is engaged in predatory lending in Nigeria and Africa writ large. In typical fashion, Zhao blamed the U.S. ...
Why African Countries in Debt to China Should Pay Close Attention to What’s Happening in Laos
A Chinese state-owned company will take control of the power grid in Laos, one of Asia's poorest countries, in a deal to stave off default of its multi-billion-dollar debts to China. The two sides reached an agreement last week for Electricite du ...
Is Debt-for-Equity Chinese for “Debt Trap?”
Tucked away in a remote corner of Southeast Asia, an important experiment is now underway that could have profound implications for how China manages its vast loan portfolio in Africa and in other developing regions. Last week, Laos's state-owned electric power ...
No Evidence, No Problem: Nigerian Media’s Love Affair With the Chinese “Debt Trap” Narrative
Even though scholars from around the world have debunked the charge and there's no evidence to support it, the Chinese debt trap meme is alive and well in some of Nigeria's leading newspapers. The ongoing Chinese loan controversy in Nigeria has ...
Nigeria’s Debt Management Office Tries (Again) to Set the Record Straight About Chinese Loans
For a second time, the Nigerian Debt Management Office (DMO) published easy to understand infographics that attempt to dispel the downright inaccurate information circulating in the press and on social media about the country's loans from China. The DMO ...