China debt trap.

in hive-184714 •  3 years ago 

China is putting many countries in danger of falling into their strategic debt trap. Over the past decade, China's debt trap has grown exponentially.

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China mainly targets developing and underdeveloped countries, meaning that all those countries need huge sums of money for infrastructural development. China is lending huge amounts of money to those countries at high interest rates. Most of the loans are being disbursed from various state-owned banks in China at high interest rates.
Which is referred to as 'risky' debt.

After taking a loan, the amount of interest increases as time goes on. The burden of Chinese debt has now become a thorn in the side of many countries. Those countries are falling into the debt trap of China.
China has lent huge sums of money to several South Asian countries. Sri Lanka has already fallen into the debt trap of China.
Huge loans have also been given to Bangladesh and Pakistan. The main problem is a lot of corruption in such countries. As a result, the loan money is not fully spent. And as time goes on, so does debt. Which becomes miserable. This situation has a bad effect on the general people.

To pay for all this, the government imposes additional taxes from various sectors. As a result, rising commodity prices and inflation can be observed. It is to be noted that inflation has been observed in many countries including Kenya, Myanmar, Kyrgyzstan, Laos, Bangladesh, Pakistan and Sri Lanka for several years now. I think China's debt trap is directly responsible for inflation. He is also responsible for corruption and mismanagement of government.

I respect and love every country and nation, but not all decisions or actions. If you are a Chinese citizen or a supporter of China, don't be upset by my words.

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