29 January 2023

Is now the time for Nepal’s debt trap by China diplomacy?

 Is now the time for Nepal’s debt trap by China diplomacy?

You saw the situation in Sri Lanka at starting of 2020 after the worldwide covid lockdown. In Asia, Sri Lanka was struggling for food, foreign reserved got down, and IMF and other International Banks declared banks corrupt. In all this had been a critical situation for Sri Lanka, China Diplomacy took Hambantota for 99 years lease on the amount of not paid hidden loans with heavy interest from China. Sri Lanka has not yet recovered from all this. Here, you also see Pakistan has not been able to import essential goods, the food rate has gone high and high, and it has been difficult to afford for the common people of Pakistan. People of Pakistan come to the road to protest against the government. The interesting thing is Pakistan had taken many loans from the USA, UAE, China, and other richest countries.  As we know, Pakistan is a puppet of China. Pakistan is part of China’s BRI “Belt and Road Initiative” projects, and Pakistan’s financial, technical, or weaponry depends on China as well as the USA. Nowadays Pakistan suffers from a very difficult situation, and it will be worse in the coming days for Pakistan. As per the media source, Pakistan has also taken heavy loans with much harder 7-8 percent interest from China, and experts assume that Pakistan will lose some important properties on the behalf of not paid loans. China knows many developing small countries need loans for standing their own country on competition worldwide and also these countries want to show the development inside the country to their people, it helps next election to show development in government periods. With all this knowledge and the needs of countries, China gives him quick loans with heavy interest as compared to the World bank does not give frequent loans and take very cheap interest to small and poor countries.

The same things, ways of destroying Asia's poor and small countries and giving heavier undeclare loans for trapping those countries in debt. Nepal has now on the same track as the debt trap by Chinese diplomacy. Many important projects like airports, road connectivity, tunnels, and businesses start-up have been funded and built by directly Chinese companies in Nepal. The influence of Chinese dominance has been increasing rapidly on the Nepal government and markets. As Sri Lanka’s market and the government were run through Chinese diplomacy, we saw the consequences of that policy in Sri Lanka.

I think Nepal has time to control all these consequences. The people of Nepal should be very aware of this because as long as the government is alert, it will be late.


Kunal Bhushan

International Relations-MA

Sikkim Central University, India                


 Game of Loans: How China Bought Hambantota👇

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