Is Nepal falling into China’s Debt trap ?

Dr. Binita - -
BRI is China’s strategy to become a world power. This world infrastructure development policy, China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth. But The BRI supports authoritarian rule. Many corrupt cases in the BRI involve Chinese dealmakers and authoritarian leaders seeking to advance authoritarian rule.
Currently, 150 countries are participating in BRI. Nepal is also a member. After the success of BRI, 40 percent of the world’s domestic production will go into China’s grip. China will influence 65 percent of the population. 75 percent of China’s economy will run on oil and fuel. In the world’s biggest projects, China will continue to dominate.
BRI has widened the 8,000 km long Silk Road, which is considered to be the old commercial lifeline centered on South Asia, China.
In 2013, Xi Jinping, with the dream of becoming a world leader, went to China and Indonesia and put forward his idea. To make this policy successful, President Xi Jinping introduced an economic policy in 2014 and amended the constitution in 2018. Asia Infrastructure Bank and Silk Road Fund have also been set up to invest in BRI. BRI has increased investment in big projects like airports, hydro, ports, roads, railways, industries. Rich countries like Singapore and Poland have also joined the BRI.
Acording to official information, in March 2022, 146 countries and 32 international organizations had signed cooperation agreements for the BRI. others respective country or organization sign a Memorandum of Understanding (MoU).
The Belt and Road Initiative (BRI) constains the following six international economic corridors.
- China-Mongolia-Russia Economic Corridor. ...
- New Eurasian Land Bridge. ...
- China-Central Asia-West Asia Economic Corridor. ...
- China-Indochina Peninsula Economic Corridor. ...
- China-Pakistan Economic Corridor.
Black Sea, joins Turkey. Connects sea traffic through Singapore. Promotes Trans Himalayan Network. Makes Nepal a landlink from landlock.
Wherever there is an American presence in the world, there is a military camp. BRI plans to cover all those areas and expand its influence. Even though BRI looks like a development plan, it is a plan to gain power and make the world crave for a dragon.
Nepal has taken membership. When Pokhara International Airport was inaugurated on January 1, 2023, Chinese Acting Ambassador Wang Xin suddenly said that this plan is under BRI. While Nepal made this project with a loan of 217 million dollars from Exim Bank of China.
The construction of Gautam Buddha International Airport was completed on May 16, 2022, with China as the contractor. But since China is the contractor for both these airports, India did not give air route. Because of this, it has been speculated that Nepal will not be able to pay China’s debt.

BRI is the most expensive project in the world
First, China is investing trillions of dollars in OVOR and its modified form, BRI. This investment seems more attractive. When it is slightly lower, the poison inside the ball must lose its sovereignty. Before there was the World Bank, the IMF, they used to put a lot of conditions. Now China has BRI, the conditions are few but it won’t take long. Due to anarchy, corruption, commissions, there is a greater danger of drowning the country with BRI’s debt.
If the strategy of BRI is not understood, it will change the geopolitical scenario of the world after a few years.
China says - BRI is a win-win project. China’s BRI can be a good plan if there is political stability and timely completion of the plan. China has adopted a similar policy of seizure through BRI, just like a bank gives loans with collateral and seizes the collateral when it cannot be paid. The growing world tension, instability in every country, corruption and lack of principle, power struggle are favorable for China’s BRI policy.
Therefore, although BRI is attractive and easy to see, there is also a dark and scary side of the coin.

The other side of the coin –

Hammantota Port in Sri Lanka
China has given a loan of $307 million under BRI for the construction of Sri Lanka’s Hammantota port. While giving the loan, China made a condition that China would provide all the construction companies, workers, and materials. Due to these conditions, the project was not completed on time. By the time the project was completed, the loan had grown from millions to billions.
Sri Lanka has fallen into a debt trap. Couldn’t pay.
Finally, Sri Lanka let China operate the Hammantota port for 99 years. This port became the Chinese empire within Sri Lanka.
Saddled with predatory Chinese loans, Sri Lanka granted China a 99-year lease and 70% stake in its deep-water port also.

Gwadar in Pakistan
China gave $10 billion debt to “all weather friend” Pakistan,  for the construction of the Gwadar port.
The strategic Gwadar Port in Balochistan province on the Arabian Sea is being built by China under the multi-billion China-Pakistan Economic Corridor (CPEC) and is considered to be a link between Beijing’s ambitious One Belt, One Road (OBOR) and Maritime Silk Road projects.
Pakistan could not pay the installments of the loan.
As Pakistan is falling into economic and political chaos, this port has been allowed to operate by China for 40 years. Gwadar port in Pakistan is already under Chinese empire.

The Maldives owes China roughly $1.5 billion in debt, Maldives has also been taken to Debt Trap. 
China has already intervened by putting 9 thousand square kilometers of land in Tajikistan into a debt trap.

The electricity grid of Laos has been taken over, while China is advancing to Cambodia and Malaysia under the Saver for Global Development project. Another 25 debtor countries are handing over their debt to China.

Anyway, in order to become a world economic and strategic power, it is seen that the strategy of putting China in political and debt trap is advancing rapidly through BRI.

BRI stands for Lenders, Workers, Contractors, Material Self-Supply and Create an Environment to Try Wrap. Can’t work on time and the debtor has to pay a high price? This is why BRI is an undemocratic strategy. Lending at one price, the cost increases as the price increases over time. Increase debt. If you can’t pay, you have to hand over the land and the plan to China. China’s debt trap is no less than Hitler’s guillotine.

Djibouti in Africa
In Africa, Djibouti owes China over 80% of its GDP and in 2017, the country became host to China’s first overseas military base.
thus, In Latin America, Ecuador agreed to sell 80 to 90 % of its exportable crude oil to China through 2024 in exchange for USD 6.5 billion in Chinese loans trap.

After leasing land tax-free to China for 50 years, Argentina is denied access and oversight to a Chinese satellite tracking station on its sovereign territory, with allowing  military purposes.

China’s presence in Nepal is gradually increasing. It is not only a threat to democracy, but there is an increase in the possibility of entangling Nepal in geopolitics. Nepal is a world strategic country. In the future, Nepal seems to be at risk of China’s debt trap and interference. China has started arming both Marxists and Maoists.
If Nepal does not pay attention to the development of grants and not loans, it will not have to wait long to become Sri Lanka.
This time is risky for Nepal.

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