. About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. Their presence is irritating and appears threatening to Japan, but foreign ships sailing within the contiguous zone is not a violation of international law. The notable exceptions are Hungary and Italy, where those on the right are more likely than those on the left to see China favorably. The countries with the biggest debt burdens in relative terms were Djibouti and Angola, followed by the Maldives and Laos, which opened a debt-laden railway line to China last year. Almost all of this lending is official, coming from the government and state-controlled entities. In the 1950s and 1960s, when it lent money to other Communist states, China accounted for a small share of world GDP, so the lending had little or no impact on the pattern of global capital flows. China and India are the world's population behemoths but their demographics are very different. Not too long ago China received foreign aid, but now the tables have turned. In Africa, which lags all other regions of the world in the availability of paved roads and electricity, that deficit is set to grow without a massive influx of hard infrastructure investment At current rates, the minimum deficit of the road network will be 60,000km by 2040 and an additional 30,000km gap for the rail network.". Africa is important to China for several reasons. As the new preferred lender to low-income countries, China held 37 percent of these nations' debt in 2020. . The AidData researchers found that the Belt and Road project is facing its own issues. . 'The Global Gateway': More Empty Promises from the EU? The Paris Club used to hold the majority of low-income countries debt before it was restructured and largely forgiven after the turn of the millennium for qualifying, developing countries. Since 2011, two dozen developing countries have restructured their debt to China. A twisting railway running between China and the neighbouring country of Laos is often touted as a prime example of China's off-the-books lending. Taken together, young people in a few countries including Australia, Belgium, Canada, Sweden and the United Kingdom are both more positive toward China and less positive toward the U.S. than older adults. Because the West is NOT offering what these countries really need (same happens with Latin America btw). "The loan that China's Eximbank made to cover part of the equity really showcases the urgency of the Chinese state to push through the project," explains Wanjing Kelly Chen, research assistant professor at the Hong Kong University of Science and Technology. In Australia, the Netherlands and Sweden, for example, younger people have much less positive views of the U.S. than older people do. The western media are constantly blaming Europe's and the US policies in Africa as "racist" "neocolonialist" "ill-advised" "self-serving" etc with hardly a word on China's actions on that continent. A median of 66% across 19 countries say Chinas influence on the world stage is getting stronger, while just 32% say the same about the U.S. For instance, in Greece, 60% of those on the right have a favorable view of the U.S., compared with only 22% of those on the left. China was able to do so by lending those countries massive amounts of money they can never repay. "America cannot ignore Africa. China has never been able to project military power beyond the confines of the Yellow Sea and never will be able to. One example often cited by critics of China is Sri Lanka, which years ago embarked on a massive port project in Hambantota with Chinese investment. Despite that, there's little doubt China's economic involvement in Sri Lanka has grown in the past decade, and concerns persist that this could be used to advance its political ambitions in the region. ", "Is China being smart?" What matters to China is consumer and investor confidence, "so it is not hard to see why Chinese officials are pushing back on the argument that a population decline spells economic decline," said Dimitar Gueorguiev, an associate professor who teaches Chinese politics at Syracuse University. The authors research, based on a comprehensive new data set, reveals that between 1949 and 2017, thestate and its subsidiaries lent about $1.5 trillion to more than 150 countries across the globe much of which has been hidden from public view. And this is all before the railway has even begun operations. China has illegally occupied a 38,000 sq km of India's land in Aksai Chin. Despite the vying population statistics, China is far more wealthy than India. Countries can be difficult borrowers, Gelpern explains, and it's not practical to expect them to hand over a physical asset like a port if they're unable to pay their debts. And their analysis found that 50% of Chinas loans to developing countries go unreported, which distorts the views of the official and private sectors in three material ways: 1) Official surveillance work is hampered when parts of a countrys debt are unknown. The clashes were the first to result in fatalities in the border area in at least 45 years. In many countries, younger people tend to feel more positively about China than older people. Currently, only 13 countries (plus the Vatican) recognise Taiwan as a sovereign country. When it comes to views of the U.S., the pattern is more varied. Please note that the code must be integrated into the HTML code (not only the text) for WordPress pages and other CMS sites. Most populous nation: Should India rejoice or panic? The U.S. is also seen substantially more positively than China in Japan (+58 points) and Australia (+40 points). China does not publish records of its foreign loans, and the majority of its contracts contain non-disclosure clauses which prevent borrowers from revealing their contents. Those findings suggest that "population anxieties have seeped into large portions of the general public," even though the numbers should be seen as a sign of developmen, rather than a cause for anxiety, Andrea Wojnar, the United Nations Population Funds representative for India, said in a statement. But this does not comprehend the severity of the situation Africa finds itself. In the 15th century, China occupied Vietnam from 1407 to 1427. Maybe more importantly, our analysis reveals that 50% of Chinas loans to developing countries go unreported, meaning that these debt stocks do not appear in the gold standard data sources provided by the World Bank, the IMF, or credit-rating agencies. For some years, Beijing has been aggravating tensions by increasing the presence of China Coast Guard vessels in the contiguous zone of the Senkaku/Diaoyu Islands, The Diplomat said. China is one of the world's largest single creditor nations. In 19 countries surveyed by Pew Research Center this spring, people see the United States and President Joe Biden more favorably than China and its president, Xi Jinping. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: According to World Bank data analyzed by Statista, countries heavily in debt to China are mostly located in Africa, but can also be found in Central Asia, Southeast Asia and the Pacific. China grows its military while we worry about diversity, inclusion and the proper fit of pregnancy uniforms. In September, Radio Free Asia reported that residents of Myanmars northern Shan state had destroyed a fence built by Chinese authorities, claiming it encroaches on their countrys territory. Heres What They Think About China, In Their Own Words, Americans views of Asia-Pacific nations have not changed since 2018 with the exception of China, In their own words: What Americans think about China, What the data says about Americans views of climate change, Podcasts as a Source of News and Information, AI in Hiring and Evaluating Workers: What Americans Think, Americans confident in Zelenskyy, but have limited familiarity with some other world leaders, How Public Polling Has Changed in the 21st Century. In March alone, Chinese Foreign Minister Wang Yi held bilateral talks with his African counterparts in Algeria, Egypt, The Gambia, Niger, Somalia, Tanzania and Zambia. That's what partly stagnated the economy of neighboring Japan, despite it already being a high-income country. In total, the Chinese state and its subsidiaries have lent about $1.5 trillion in direct loans and trade credits to more than 150 countries around the globe. A dozen of these countries owe debt of at least 20% of their nominal GDP to China (Djibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia, Niger, Laos, Zambia, Samoa, Vanuatu, and Mongolia). They found thatChina tends to lend at market terms, meaning at interest rates that are close to those in private capital markets, rather than the concessional rates offered by other official entities, such as the World Bank or IMF. Other official entities, such as the World Bank, typically lend at concessional, below-market interest rates, and longer maturities. "I think our conclusion is that they were being muscular and sophisticated in these contracts. North Korea has 127 and China 78, but due to the division criteria, some islands belong to North Korea even though they are on the Chinese side of the river. One of the disputes that has the potential to trigger a huge global fallout is Chinas ongoing disagreement with India over its land border in the Himalayas. BRI projects were more likely to be associated with corruption, labour scandals or environmental issues than other Chinese development deals. Across most countries surveyed, more educated people are more likely to say Chinas power is growing. "The U.S. and Japan have smaller populations, but it doesnt mean theyre not strong powers. And by comparison, the US is spending about $37bn in any given year to support global development activities," says Brad Parks. In about a third of the places surveyed, more educated people are also more likely to say that U.S. influence is getting weaker. (Ideology was not asked in Japan, Malaysia or Singapore.). Beijing began raising the question of sovereignty over the islands in the the 1970s when evidence of oil reserves in the regionsurfaced. . views, likes, loves, comments, shares, Facebook Watch Videos from Prime Television Zambia: NEWS OF THE WEEK || 30 APRIL 2023 Which topics are covered by the "Chart of the Day"? Why China Is Taking over Africa's Resources One Country at a Time. Recently it engaged in a flurry of diplomatic activity with African countries. Speaking to the broadcaster in 2019, Defence Minister Ng Eng Hen said that he did not think an all-out confrontation involving Singapore will take place, explaining: All the parties involved recognize that the price is too high and the issues in the South China Sea do not warrant an actual physical confrontation.. Once growing exponentially, China's aging population fell last year for the first time in six decades. A powerhouse in global trade, China has more shipping ports at. A point to note about the Belt Road initiative by China is the debt trap it is leading nations into. China has the impoverished workers willing to risk their lives for a few extra bucks in Africa. England and Wales company registration number 2008885, Subscribe to TheWeek. Over the last decade, Beijing has adopted an increasingly assertive posture towards Malaysias territory in the South China Sea, CNA, a US nonprofit research and analysis organisation, said. While China has offered to negotiate, Philippines has said these territories are non-negotiable and have always been part of their country. This way nearly all adults have a chance of selection. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. All rights reserved. Western workers should stay out of Africa, its too dangerous. But the billion dollar project using loans and contractors from China became mired in controversy, and struggled to prove viable, leaving Sri Lanka saddled with growing debts. Laos is one of the poorest countries in the region and couldn't afford even a fraction of the cost. However, engineers warned the cost would be prohibitive: tracks would need to run through steep mountains, requiring dozens of bridges and tunnels. An analysis finds 50% of Chinas loans to developing countries go unreported. Debtor countries themselves often do not collect data on debt owed by state-owned companies, which are the main recipients of Chinese loans. "Only by facilitating much, much better education and opportunities for our young can we realize the hope of an 'Indian century,'" it said. by John Richardson There's currently an initiative by G20 nations - those countries which have the largest and fastest-growing economies - to offer debt relief for poorer countries to help them deal with the impact of the pandemic. Between 2007 and 2020, China invested $23 billion in infrastructure projects in Africa, according to the Center for Global Development, a US think tank. Our data show that almost all of Chinas lending is undertaken by the government and various state-owned entities, such as public enterprises and public banks. There are other parts of the world where Chinese lending has also proved controversial, with contracts whose terms could give China leverage over important assets. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage. Just 24 percent of the countries' bilateral debt comes from the rest of the world that year. The population is important, so is talent, he told a daily briefing this week. Laos. Already in May 2021, Townsend had warned that China was overtaking America in Africa: "The Chinese are outmaneuvering the U.S. in select countries in Africa. sports and entertainment. Unfortunately for China, the African regimes that China targets are unstable with no rule of law present and just as corrupt and vicious as the Chinese CCP. The sheer amount of Chinese lending is startling. They want to eat and they want infrastructure. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. Everyone who took part in the U.S. survey is a member of the Centers American Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of residential addresses. While views of the U.S. and China have remained mostly stable over the past year, attitudes in some countries have shifted. Taken individually, these "nations" would account for eight of the 20 most populous countries in the world. The countries fought a bloody border war in 1962, ending in a ceasefire that established the Line of Actual Control, Newsweek added. As China's economy becomes more integrated, these regional differences are taking . Since 2010 well over $20bn of Chinese . But even then, about 90% of the $100 billion (in todays dollars) spent in Europe comprised grants and aid. Read the "Chung Kuo: Middle Earth" series by David Wingrove. Islands and reefs: ~75,400 km 2. And all the Germans remained obediently silent, accepting their truth. Those nations like Sri Lanka or Pakistan have floundered and unable to pay Russia will be no exception and tragically African nations too will fall into this trap. "I believe both India and China dont want conflict.". First, official surveillance work is hampered when parts of a countrys debt are not known. More countries have opted to take the strictest measures possible to contain it. When publishing one of these graphics, 2023 BBC. Copyright 2023 Gatestone Institute. After pursuing economic liberalization in the 1970s, its economy has mushroomed to become the second largest in the world behind the U.S., with a gross domestic product almost seven times that of India, which is placed fifth. A 1962 border treaty split the islands according to which ethnic group wereliving on each island. . Between 2000 and 2017, other countries' debt owed to China soared ten-fold, from less than $500 billion to more than $5 trillion, according to the study from Germany-based think tank the Kiel . China and Japan have repeatedly clashed over a group of uninhabited islands called the Senkaku Islands in Tokyo, the Diaoyu Islands in Beijing and theTiaoyutai Islands in Taiwan. . Laos has a 313-mile border with China that runs from the tripoint with Myanmar in the west to the tripoint with Vietnam in the east. How will China collect the debt? This problem is aggravated by the fact that many Chinese official loans have collateral clauses, so that China may be treated preferentially in case of repayment problems. In June 2020, soldiers clashed in hand-to-hand combat as a border dispute threatened the uneasy truce between the worlds most populous nations. As of 2021, China had officially lent around $180 billion to low and middle-income countries, up from just around $40 billion in 2010. Over an 18-year period, China has granted or loaned money to 13,427 infrastructure projects worth $843bn across 165 countries, according to the AidData research lab at William & Mary, a university in the US state of Virginia. While China has been increasing its annual Foreign Direct Investments (FDI) in Africa -- its FDI flows grew from just $75 million in 2003 to $4.2 billion in 2020 -- annual American FDI flows to Africa have been heading the other way. Reports show that a substantial number of African countries have taken Chinese loans since 2000, totaling a whopping $124 billion by 2016 . There are now more than 40 low and middle-income countries, according to AidData, whose debt exposure to Chinese lenders is more than 10% of the size of their annual economic output (GDP) as a result of this "hidden debt". For example, credit rating agencies, such as Moodys or Standard & Poors, or data providers, such as Bloomberg, focus on private creditors, but Chinas lending is state sponsored, and therefore off their radar screen. The prominent countries with whom China is involved in severe disputes apart from India are Vietnam, Indonesia, Malaysia, Phillipines and Japan. That is reportedly "$8 billion more than what the other top eight lenders combined, including the World Bank, African Development Bank, and the US and European development banks, contributed." China shares a contiguous border of 292 miles with Bhutan and territorial disputes have been a source of potential conflict. Surveys were conducted face to face in Hungary, Poland and Israel and online in Australia. These disputes remain the main point of contention between Vietnam and China, and in many respects, they constitute a main driver of Vietnams foreign policy.. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. "China continues to gain strength while we are led by weaklings. Sun Tzu stated, "The supreme art of war is to subdue the enemy without fighting. In the past, Western countries were guilty of dragging African countries in particular into debt. Most Chinese loans have helped finance large-scale investments in infrastructure, energy, and mining. Then in the future I won't have to hear about how the white man is the source of the problems in Africa. What are 'debt traps' and what's the evidence for them? A deal with Venezuela, for example, demands the Venezuelan borrower deposit the foreign currency earned by selling oil directly into a bank account controlled by China. The BBC is not responsible for the content of external sites. As of 2018, the PBoC has signed swap agreements with more than 40 central banks (ranging from Argentina to Ukraine), providing the right to exchange more than U.S. $550 billion of their own currencies for Chinese currency (the renminbi or RMB). Very little came at market terms and with strings attached such as collateral. In Germany I met several African immigrants (in the tech business), and all of them repeated a similar theme, that back home things were wonderful before the colonialists appeared. Enter China's ambitious bankers: with backing from a group of Chinese state companies and a consortium of Chinese state lenders, the $5.9bn railway is set to begin operations in December. In both countries, the share who see China positively is 16 points greater than the share who see the U.S. in the same light. Is climate change killing Australian wine? It will be very near impossible for the US or others to catch up on that, especially with the planned B3W initiative, because that initiative is not focused on much-needed tangible investments. It argues that such confidentiality is common practice for international loan contracts. To address this lack of knowledge, we embarked on a multi-year data-gathering effort. Much of this money is linked to Chinese President Xi Jinping's ambitious Belt and Road strategy. Beijing "alleges that it owns large parts of Laos on . Read about our approach to external linking. The new intelligence suggests around 20,000 Russian soldiers have been killed in the . But there are no cases, among the hundreds of loan arrangements studied by AidData and some other researchers, of Chinese state-owned lenders actually seizing a major asset in the event of a loan default. The U.S. is generally seen more positively than China. Use is, however, only permitted with Chinese state-owned lenders also typically require borrowers to maintain a minimum cash balance in an offshore account to which the lender has access. For an optimal experience visit our site on another browser. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. This systematic underreporting of Chinese loans has created a hidden debt problem meaning that debtor countries and international institutions alike have an incomplete picture on how much countries around the world owe to China and under which conditions. Read about our approach to external linking. From 2020 to 2021, trade between Africa and China reportedly increased by 35% . In order to keep the BRI on track, researchers say, Beijing will have no choice but to address borrowers' concerns. 2023 Gatestone Institute. Why Don't Americans Trust the Biden Administration on Iran? 2) Private sectors will misprice debt contracts, such as sovereign bonds, if they fail to grasp the true scope of a governments debts a problem thats compounded by the collateral clauses in many Chinese official loans, meaning that China will get preferential treatment when it comes to repayments. It is estimated that 12 percent of Africa industrial production, or $500 billion annuallynearly. And that's news even to Chinese officials themselves. VideoOn board the worlds last surviving turntable ferry, I didnt think make-up was made for black girls, Why there is serious money in kitchen fumes. Eventually, if debtors are unable to service their debts, China takes over its collateral which is mostly in national assets. industries; and "Economy and Society", which It was heaven on earth. When the Communist Party of China first came to power in 1949, it was virtually completely unrecognized by pretty much every other country in the world most of whom favored the Republic of. "Our competitors clearly see Africa's rich potential. China is alarmed by the Quad. China's economic and diplomatic engagements allow it to buttress autocracies and change international norms in a patient effort to claim their second continent." Singapore: Even though they entered a . However, the plan might simply have come along too late. proper attribution to Statista. Instead, its four focus areas are climate, health and health security, digital technology, and gender equity and equality. has called the level of debt many countries once again . News of the population ranking made headlines around the world. Both reserve the right not to publish replies to articles should they so choose. After the Ukraine conflict has been stabilized and Putin has been forced out of power (eliminated) Russia will be reduced to a second rate power at best (with nuclear weapons) with only its petroleum products to sell to Europe. world relating to economic and political issues as well as The US-China Economic and Security Review Commission wrote in its 2020 Report to Congress: "China is dependent on Africa for imports of fossil fuels and commodities constituting critical inputs in emerging technology products. That is reportedly "$8 billion more than the other top eight lenders combined". Both claim that it falls within their exclusive economic zones. Therefore, now both the countries are required to settle the disputes amicably because presently both the nations . According to the Financial Times, the country had to renegotiate loans worth $52 billion in 2020 and 2021 - more than three times the amount that met this fate in the two previous years. ", Retired teacher Liu Quan, 57, said he doesn't care about the population news at all. But it has over recent years improved ties with China to counterbalance its long-standing relationship with India, its giant neighbour to the south.. China is now Africa's largest trade partner. has questioned whether the "debt trap" narrative strictly applies, It argues that such confidentiality is common practice, Serena Williams announces pregnancy at Met Gala, Shooting suspect was deported four times - US media, Met Gala 2023: Stars celebrate Karl Lagerfeld, New record as 4.56m Indians take flights in a day, Japan to ban upskirting in stronger sex crime laws, Palestinian hunger striker dies in Israel prison. Our research, based on a comprehensive new data set, shows that China has extended many more loans to developing countries than previously known. We also show that China tends to lend at market terms, meaning at interest rates that are close to those in private capital markets. US-China Economic and Security Review Commission, 2020 annual report to Congress. While Biden vegetates Xi is trick or treating across Africa.It's the American version of "while Rome burned".It will be interesting to see how Red China deals with Islamists. In both instances, the Chinese invaders were defeated with the help of the kamikaze, "divine winds" of typhoons that destroyed the ships of the Chinese invaders. In 2018 alone, China acquired over 20 deep water and air ports from several countries around the world. Our standard is 660 pixels, but you can customize how the statistic is displayed to suit your site by setting the width and the display size. In South Korea, 89% have a favorable view of the U.S., 70 percentage points more than the 19% who say the same of China. This control threatens the ability of U.S. companies to access key supplies.". This gap in perceptions is largest in Australia, where more than three times as many say China's influence is growing than say the same about American influence (73% vs. 19%). As early as the 1970s, countries began to claim islands and various . The editors reserve the right not to publish comments containing: incitement to violence, profanity, or broad-brush slurring of any race, ethnic group or religion. current data from the United States and around the Also, working with Western official financiers is bureaucratic and subject to long delays.". Along with Taiwan, this is perhaps the most well-known of Chinas territorial disputes. China tends to lend at higher rates of interest than western governments. Note: Gatestone appreciates your comments. Simply copy the HTML code that is shown for the relevant statistic in order to integrate it. In most countries, people on the ideological right and left feel similarly about China. At the same time, however, there are no countries where more than half say U.S. influence is weakening, either. Such loans don't show up in official accounts of government debt. This change does not substantively affect the findings in this analysis. "They say: 'We can't get our hands on this data internally'.". This raises serious questions about the ability of this titan one on which the global economy has come to rely to maintain, let alone enhance, its economic status. It will be very near impossible for the US or others to catch up on that, especially with the planned B3W initiative, because that initiative is not focused on much-needed tangible investments. Following an unsuccessful uprising in 1959, Tibets spiritual leader, the Dalai Lama, fled to India, where he set up a government in exile. Workers in Jiangsu province, seen here producing equipment for export along China's Belt and Road, The Yumo railway will link China and Laos - but experts say Laos will struggle to pay back the debt, President Xi has sought to reassure others after criticism of China's global infrastructure projects, What is China's One Belt, One Road? Djibouti, Laos, Zambia and Kyrgyzstan have debts to China equivalent to at least 20% of their annual GDP. Xi must have, and took them very seriously. China has been a major player in Africa politically and economically and secured long term contracts to guarantee supply of metals, minerals and hydrocarbons to meet the needs of its industry for the coming decades. It particularly takes issue with the building airstrips and hangars, as well as stationing anti-aircraft and anti-missile systems in the Spratly Islands, Deutsche Welle said.
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