chinese chequebook diplomacy middle east djibouti

The idea was advanced by two Harvard University graduate students in a paper which called it Chinese 'debt book diplomacy'. According to Chellaney, 'It's clearly part of China's geostrategic vision.' The Chinese government is requiring secret negotiations and non-competitive pricing on projects in which bidding is closed and contracts must go to Chinese state-owned or state-linked companies which charge above-market prices. The term was coined by Brahma Chellaney in 2017 to describe what he called China's predatory lending practices, which overwhelm poor countries with unsustainable loans and force them to cede strategic leverage to China. Other analysts have described the idea of a Chinese debt trap as a 'myth' or 'distraction'. The term was coined by Indian academic Brahma Chellaney to describe how the Chinese government leverages the debt burden of smaller countries for geopolitical ends. The borrowed money commonly pays for contractors and materials sourced from the creditor country. The conditions of the loans are often not publicized. The creditor country is said to extend excessive credit to a debtor country with the intention of extracting economic or political concessions when the debtor country becomes unable to meet its repayment obligations. ( Learn how and when to remove this template message)ĭebt-trap diplomacy is an international financial relationship where a creditor country or institution extends debt to a borrowing nation partially, or solely, to increase the lender's political leverage. ( June 2022) ( Learn how and when to remove this template message) Please help by spinning off or relocating any relevant information, and removing excessive detail that may be against Wikipedia's inclusion policy. This article may contain an excessive amount of intricate detail that may interest only a particular audience.

Chinese chequebook diplomacy middle east djibouti