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Subject
Chinese lending to Africa.
Significance
Amid fears of a new African debt crisis, China’s role as a major development financier faces increasing scrutiny. However, the ‘debt-trap diplomacy’ debate mischaracterises the underlying mechanisms driving Chinese lending while obscuring the legitimate reasons to be wary of Chinese financing practices.
Impacts
Washington will try to use the ‘debt-trap’ angle as a lever against Chinese influence, while its own Africa strategy remains slow and vague.
As Chinese-backed projects face more scrutiny, host nations may impose tighter requirements and rework or cancel some existing projects.
Amid domestic concern over slowing growth and profligate spending, Beijing may tighten regulations to prevent funding of unviable projects.
Keywords:
China,
Africa,
AF,
AP,
Djibouti,
Sierra Leone,
Zambia,
CHINA/AFRICA,
economy,
industry,
international relations,
politics,
aid,
debt,
foreign investment,
foreign policy,
infrastructure,
regional
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2019
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