China's debt-trap diplomacy is spreading across Africa

[DonViejo]

Erica Pandey 47 mins ago

China is leveraging debts to gain control of strategic ports and secure primary access to African oil in Angola, Kenya and Djibouti.

Why it matters: The Chinese are offering up attractive infrastructure projects to the countries that need them most and following up with escalating demands for influence. That approach will spread to even more of the globe under Beijing's trillion-dollar Belt and Road Initiative.

Angola is using its precious resource, crude oil, to chip away at a $25 billion debt to China.

Since the two countries established diplomatic ties in 1983, China has loaned $60 billion to Angola through investments, loans and projects — one of the most recent being a $600 million deep sea port off the small African nation's shores.

Instead of using cash, Angola pays China back with oil (it's Africa's second-largest producer) which means its ability to repay debt depends on the price of oil, writes Yinka Adegoke, Quartz's Africa editor, in his weekly brief. It also leaves less oil for Angola to sell to other trading partners.

Djibouti is home to China's only overseas military base, and it could soon give up a key port to Beijing.

more
https://www.axios.com/china-debt-africa-djibouti-kenya-angola-belt-and-road-initiative-c65b82fa-48a6-4140-bb01-bc19580a16c9.html?utm_source=sidebar

[OneBro]

1. See "All That is Under the Heavens" by Howard French

Last edited Tue May 15, 2018, 01:40 PM - Edit history (1)

For an in-depth analysis on this issue, read "All That is Under the Heavens" by Howard French. As the US shrinks in international influence, China is greatly expanding its economic and political influence.

Update: Warnings Sounded Over Chinese Debtbook Policies
https://www.theguardian.com/world/2018/may/15/warning-sounded-over-chinas-debtbook-diplomacy?CMP=Share_iOSApp_Other

[Blue_Tires]

2. I told y'all years ago

that China wouldn't be making such immense investments without expecting a hefty return...

Now the bill's come due