Is China DESTROYING Africa? (sexpatza)

What did he say?

A NYT Article stated that the majority of the debt in Africa are held by Western countries...

And even the Sri Lankan case seems flawed.

Sri Lanka is often cited as the poster child for the ills of Chinese debt-trap diplomacy. China financed a port in Hambantota; the port incurred losses, making loan-repayment difficult; after the election of a new government in Sri Lanka, 70 percent of the port was sold to a Chinese company, prompting speculation that China had orchestrated the whole fiasco.

Yet the plan to build a port in Hambantota had long been part of Sri Lanka’s broader hopes to compete with Singapore as a regional transport hub. According to a 2006 feasibility study by the Danish company Ramboll, Hambantota would be economically viable in time if it focused on becoming an intermediate stop for the shipment of vehicles and on supplying fuel to ships plying the Indian Ocean. Whereas the transshipment business developed in line with predictions, domestic political infighting stymied the rollout of fuel bunkering. The port struggled for revenues and then so did the port authority to pay back its loans.

But the Hambantota loans accounted for only a tiny share of Sri Lanka’s debt overall. When the sale of the port was negotiated in 2016, Sri Lanka had an external debt of $46.5 billion; according to the I.M.F., only 10 percent of it was owed to China. As the economists Dushni Weerakoon and Sisira Jayasuriya have argued, “Sri Lanka’s debt problem isn’t made in China.”

/r/aznidentity Thread Parent Link -