How is China Using its Debt Trap Policy against Nations and Making its Economy Stronger?- By: Muskan

Through its 'one-belt , one road project' China is supporting other countries which are developing and under-developed by offering infrastructure loans to their government. The projects that China is supporting are often intended not to support their local economy but china also facilitates the Chinese access to natural resources or to open markets for low cost Chinese goods. Moreover, China send its own construction working with minimizing the local jobs that are created. Those countries who are not able to paying the debts are being forced by the china to sell to it stakes in china financed projects and hand over their management to the Chinese firms. Not only this , china is ensuring that countries will not be able to escape their debts and in exchange china is requiring countries to hand over their additional projects .

Research reports

Between 2000-2018 other countries debt owned to china increased from less than £500 billion to more than £500 trillion . It transformed china into the largest official creditor . Moreover, 50 developing countries borrowed the money from china, that debt has increased on average from less than 1% of their GDP in 2015 to more than 15% in 2017 while lower income developing countries also received direct loans from china. In the past decade, the debt levels jumps dramatically while half of such debt is 'hidden'

Current status

During the coronavirus pandemic, china received requests from Sri Lanka, Kyrgyzstan and number of african nations. With each request, china is becoming the developing world's biggest banker is backfiring. Political decisions is taken by the china in Covid-19 as countries will struggle to service their debts to Beijing which will expect more favour. Beijing is probably not going to stop and consider the results of crushing these nations at such a defenseless second. What's more, this presents a conceivably new U.S. organization with the chance to recover some ethical administration as the more generous of the two predominant worldwide realms by driving a program of global obligation help and recreation through its own, admired Bretton Woods foundation. At this moment, China, with its help flights and clinical effort, is winning the delicate force fight against a United States that has just barely started to handle the issue at home. Indeed, even as American lawmakers endeavor to reshape the U.S. economy and society to deal with the infection, they should consider what's to come.


China is using a strategy that can be known as 'debt-trap diplomacy' to trap other countries which helps China to make their economy more stronger and helps to establish their world's biggest bank.

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