KNews.id- China’s debt to several European countries boosted their economies. But for other countries it becomes a trap. The wars between Russia and Ukraine have worried Europe. But Beijing is expanding its investment portfolio, from ports, mines, to building roads and bridges.
The BBC said countries should weigh the risks of signing with China. Because many governments are increasingly wary of the so-called debt trap.
This occurs when lenders, such as China, can take economic or political concessions. That is when the investment recipient cannot pay his money back.
Including seems to pose a risk to worker safety. As happened in Greece where workers had an accident in the port of Piraeus some time ago. Markos Bekris, the head of the dockers’ union at the port, did not point directly at Beijing as the cause of the erosion of labor rights.
However, according to him, the post-global financial crisis capitalist system will allow foreign companies to enter and maximize profits at the expense of workers. There is no doubt Chinese investment has indeed revived the port since the Greek government was forced to sell it. This happened during the economic turmoil in the country in 2008.
What happened in the port of Piraeus was a job opportunity for the residents. It is also a reflection of Greece’s financial wealth and is one of the fastest growing EU economies. However, the BBC notes that Greece is also coping with the economic impacts of the Russia-Ukraine war. The countries are also reevaluating business with Beijing.
Meanwhile, according to Nazar EL Mahfudzi, Political Observer, China is cunning in printing its own printing money and giving out debt to other countries. “Money Laundry” money laundering has a long term scheme and pays interest only. Why should it be long term and low interest?.
China’s long-term investment with low interest rates is certainly in great demand by developing and poor countries, aiming to control other countries’ production lands. Interest on debt to trap payments from the weakening of the country’s currency exchange rate using USD. (AHM)
