Debt-trap diplomacy? Report finds China can crunch on loans if displeased

Mar 31, 2021 | INVESTING

China’s loans to developing countries commonly involve contracts allowing it to terminate or speed up repayments if recipients’ actions are against Chinese interests, a report has found. Such actions include ending diplomatic relations with Beijing, while the loans typically involve an unusual degree of confidentiality and prohibit borrowers from restructuring, according to a study of 100 Chinese contracts signed between 2000 and 2020 with 24 countries, 47 of them involving public resources in…

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