A well-told lie is worth a thousand facts. And the debt-trap narrative is just that: a lie, and a powerful one. The Sri Lankan port of Hambantota is not an example of China’s strategic use of debt. With a new administration in Washington, the truth about the widely, perhaps willfully, misunderstood case of Hambantota Port is long overdue.
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An inconvenient truth often ignored or denied is that Chinese economic activities on the African continent are not worse than (and often not even as bad as) US or European activities in Africa. Clingendael Research Associate Sanne van der Lugt presents six persistent myths about China-Africa relations based on her own research experiences.
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Critics of the BRI accuse China of pursuing a policy of ‘debt-trap diplomacy’: luring poor, developing countries into agreeing unsustainable loans to pursue infrastructure projects so that, when they experience financial difficulty, Beijing can seize the asset, thereby extending its strategic or military reach. This paper from the UK’s Chatham House demonstrates that the evidence for such views is limited.
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The Lowy Institute authors’ objective analysis suggests China has not been engaged in such problematic debt practices in the Pacific as to justify accusations of debt trap diplomacy, at least not to date.
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This report discusses two main questions: What is the relevance of Chinese involvement in European ports for China’s political influence in the European Union? What are the long-term implications for the Netherlands of the Maritime Silk Road, in particular in regard to Chinese involvement in European ports?
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China’s Belt and Road Initiative opens a clear set of crossroads for the EU. The report’s authors Cornell and Swanstrom ask, has the EU payed enough attention to the geopolitics? And should the EU focus more on European interests, and not only on norms and values?
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