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China already earned these loans back, because most of it was used for ... Chinese workers and not local ones. ( Exporting excess Chinese building capacity, bec

China already earned these loans back, because most of it was used for ... Chinese workers and not local ones. ( Exporting excess Chinese building capacity, because the internal market struggled). Most of these infrastructure projects weren't needed in the first place and just didn't generate any revenue for those countries.

seanmcdirmid 4y ago
Those workers still needed to be paid and supplies needed to be procured. They could have used those resources else where, except construction in China is a huge jobs program for the lower middle class and isn’t really run very efficiently to begin with. Those countries actually do need infrastructure, but not necessarily prestige projects like a new fancy airport that no one wants to use.
- alphabetatheta 4y ago
  China picks which loans to give based on geopolitical importance. This is a fantastic way to wield soft power of the US, India, and other Eurasian countries. Moreover, it also reduces reliance on the dollar.
  - data_maan 4y ago
    While increasing reliance on authoritarian countries?
- defrost 4y ago
  This is the basis of "debt trap diplomacy" and was predicted a good ten years (more?) ago when China started with the "global silk belt road" program. China is gaining 100 year (at least) leases on ports and ground stations around the planet, supplanting the UK as an empire on which the sun never sets.
  - slowmovintarget 4y ago
    This is the McKinsey strategy in action. That consulting company laid out how to do it, then seeded all their other consultation gigs with "you've got to outsource to China."
  - data_maan 4y ago
    Supplantinf the UK? I think you mean US? The UK's time has has set long ago, and Brexit seems to make sure it will it won't prosper again soon.
    - defrost 4y ago
      I meant the British Empire upon which the sun never set .. except, of course, it did post WWII which is relatively recent history in the arc of world history and empires. The connection here, of course, is Hong Kong - the thorn in China's side for a century and the blueprint for long term lease | treaty agreements over territory abroad nailed to China after foreign meddling and Opium Wars, etc. As for the US, sure, they have a global span of ports, ground stations and 'temporary' military occupations | bases as yet not given back - but they and China will be co-existing as globe spanning world powers for some decades to come, much to the chagrin of the "We're Number One" crowd.
      - nebula8804 4y ago
        How are they going to deal with their demographic collapse?

seanmcdirmid 4y ago

Those workers still needed to be paid and supplies needed to be procured. They could have used those resources else where, except construction in China is a huge jobs program for the lower middle class and isn’t really run very efficiently to begin with. Those countries actually do need infrastructure, but not necessarily prestige projects like a new fancy airport that no one wants to use.

alphabetatheta 4y ago
China picks which loans to give based on geopolitical importance. This is a fantastic way to wield soft power of the US, India, and other Eurasian countries. Moreover, it also reduces reliance on the dollar.
- data_maan 4y ago
  While increasing reliance on authoritarian countries?
defrost 4y ago
This is the basis of "debt trap diplomacy" and was predicted a good ten years (more?) ago when China started with the "global silk belt road" program. China is gaining 100 year (at least) leases on ports and ground stations around the planet, supplanting the UK as an empire on which the sun never sets.
- slowmovintarget 4y ago
  This is the McKinsey strategy in action. That consulting company laid out how to do it, then seeded all their other consultation gigs with "you've got to outsource to China."
- data_maan 4y ago
  Supplantinf the UK? I think you mean US? The UK's time has has set long ago, and Brexit seems to make sure it will it won't prosper again soon.
  - defrost 4y ago
    I meant the British Empire upon which the sun never set .. except, of course, it did post WWII which is relatively recent history in the arc of world history and empires. The connection here, of course, is Hong Kong - the thorn in China's side for a century and the blueprint for long term lease | treaty agreements over territory abroad nailed to China after foreign meddling and Opium Wars, etc. As for the US, sure, they have a global span of ports, ground stations and 'temporary' military occupations | bases as yet not given back - but they and China will be co-existing as globe spanning world powers for some decades to come, much to the chagrin of the "We're Number One" crowd.
    - nebula8804 4y ago
      How are they going to deal with their demographic collapse?