Thoughts about China Debt Strategy
China is one of the biggest single creditor nations in the world.
China's loans to lower and middle-income countries have tripled over the past decade, reaching $170bn by the end of 2020.
There are now more than 40 low and middle-income countries, whose debt exposure to Chinese lenders is more than 10% of their GDP.
But for now, let us understand how China has laid a trap for our southern neighbor, Sri Lanka?
Going back to 2008, the Lankan govt wanted to build a port in Hambantota, but Sri Lanka had just come out of a bloody civil war, so no country wanted to loan it money.
No country, but China!