China's Debt Trap by @yuvi243 #steemitindia

"There are two ways to conquer and enslave a country, One is by the sword; other is by debt " John Adams(former US president)

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Presently, china is the world's largest creditor/lender. China loaned $385 billion to African Government and private organizations between year 2000 to 2022. Coutries like Angola, Ethiopia,Zambia,the republic of the Congo and many more poor Africans countries owe china a debt.

Even if we combine the total numbers of loans given by IMF, World Bank and OECD it still can't match the number of loans china have given. With that much loans given by china the question is "whats china's masterplan?".

China's MasterPlan

We all might think that giving loan to poor countries might be good Initiative by china as it helps them to develop and generate job opportunities. but no, its not true at all.

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China give loans to poor countries with terms and conditions that benefits them in future. Thirty percent of loan contract has a clause in them that the borrowing country needs to maintain a special account and china will make decision about which bank it should be in.

Problem Number One

Borrowing Govts needs to deposit fund in special account created and given to them by china. They need to maintain minimum balance. These funds make sure that money flows outside the country from the very beginning.

Problem Number Two

China can terminate the contract at anytime and china can demand repayment at any time he wants.

Problem Number Three

China gets the power to disapprove any change in policy of borrowing country by dismissing the contract.

These contract are becoming more confidential day by day. There may be many countries where kind of contracts exits whose details even countries citizens don't know.

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China gives loans but with one interesting conditions that china will approve which country gets the contract. China give project contracts to Chinese countries. Chinese labourers go to the country to do project and earn money that china loaned to other country. On the contrary, the loan that china gives get circulated back to china in form of labour income.

If the project is successful china will get benefited but even if project fails still china will get benefited and later buy the failed project at less cost.

Thank you for reading my post and supporting me
Regards @yuvi243