The New Today

Letters

China’s financial colonialism threatens the global economy

According to The World Bank many nations mostly in the African continent, but also Central &South Eastern Asia, Central and Latin America are heavily indebted to China.

As the new preferred lender to low-income countries, China held over 405 of these nations’ debt in 2020, and that percentage has since grown.

China’s New Silk Road Project, which finances the construction of port, rail, and land infrastructure across the planet, has created much debt to China’s benefit for the participating countries.

Pakistan, Angola, Kenya, Ethiopia, Sri Lanka hold the biggest debts to China. The President of the World Bank, David Malpass said, “this level of debt is destructive and certainly unsustainable.” (NY Times).

China has lent as of 2021 approximately 180+Billion dollars to low & middle income nations. Why? The Chinese interest rates are higher than those from international institutions and also have shorter repayment windows.

There are legal conditions attached to these loans, and these conditions explain the reason China has lent such a large sum to non- struggling nations.

China has pursued a strict strategic methodology. Seek out nations rich in natural resources, particularly in rare minerals. Also seek out strategic ports, transport pathways, hidden banking centers, and other politically-militarily significant infrastructure projects, bid on and win the management and development of these projects. Why?

The places China is most active in are geo-politically and militarily significant. Furthermore, how best to achieve your goal, than to enter low income, distressed and openly corrupt regions.

Through a nation’s leadership and Business Sector, offering prestige, funds and self-importance, China worked their magic upon the profiteering desires of nations’ leadership.

The conditions of these loans assured China would be able to maintain and control its investments by managing and actually building the infrastructure mentioned.

Related:  In this time of struggling lives: Prayer can help

There are over 50,000 PLA Troops stationed in Africa today, thought to be protecting their nation’s investments. So the story goes. Nicaragua is a very small nation with an even smaller population, yet China’s interest in Nicaragua is significant.

The conditions placed upon their nation’s loans contracted to China allow China a free reign in all things financial, political and military. The nation’s marketplace is monopolised by Chinese Corporations, even food stuffs from China are found in their groceries.

Military weapons are becoming Chinese made, and the security apparatus has fallen into the hands of China’s Intelligence Agencies, propping up the present day dictatorship. All telecommunications, digital, microwave transmitting systems are in Chinese hand’s. (Le Prensa).

China has purchased the fidelity, friendship and dependence of smaller nations as it continues its battle with other superpowers worldwide. Many small Island nations’ national ports and communication systems are managed directly or through third parties by China.

China has tried to purchase all control of the Panama Canal. Chinese over reach know no boundaries, as the poverty of small nations and the greed of their leadership lay wide open to China the opportunity to add them to China’s Preferred list of Conditional Allies, friendly only because they have to be.

Once a nation is firmly in China’s debt, the call for pay back will often come in another form than cash, but political or military assistance.

Remember every Corporation that does business with China is subject to Chinese Laws, including one that states that China can exert undue pressure with demands upon any Corporation, Person or Nation it does business with.

Think about that!

Steven Kaszab
Bradford, Ontario