Asia

Notwithstanding China’s frequent denial of pushing developing Afro-Asian countries into debt trap, Kenya is the new entrant in the list of defaulting countries. The Chinese banks fined Kenya Ksh1.312 billion ($10.8 million) in the year ended June for loan defaults. Kenya defaulted on repayment of the Chinese loans taken to build the standard gauge railway (SGR). The deal to fund the first phase of the SGR, Kenya’s single-largest infrastructure project by cost since independence, saw China overtake Japan as Kenya’s largest bilateral lender.  But the initial jubilation has turned instability The default came in a year when Kenya had asked for an extension of the debt repayment moratorium from bilateral lenders, including China, by another six months. But the lenders, especially Exim...

China's growing presence in the African continent and its rampant illegal mining is posing several social and environmental challenges to many countries. One of the telling examples is gold mining in Ghana. Illegal mining in Ghana has assumed alarming proportions and it is threatening the survival of water bodies. Most of these illegal miners use very dangerous substances like cyanide and mercury in processing their ore, which are not biodegradable and leach into the water bodies creating serious problems for the communities who use these sources of water as drinking water. Recently a Chinese businesswoman, Aisha Huang known in Ghana as “the queen of illegal gold mining” along with three other Chinese nationals was arrested for illegal gold mining, selling and buying minerals without a...

In China, there is a widely popular and frequently used term, Guanxi, which has profound influence on almost all social interactions, whether in government or in business. Theoretically, it is a network of connection and obligation that provide a foundation of societal trust. However, Guanxi in practical sense is a system of mutually beneficial relationship that works as a lubricant for the wheels of business transaction, and is often synonymous with bribery and corruption in China. The system of Guanxi is rampant in Chinese society. Earlier it used to have local implication, but now it has permeated into global markets. Chinese acclimatized to corrupt milieu at home, are now infesting global markets with the system of Guanxi. Kuwait’s Ministry of Public Works recently disqualified the...

The latest Covid outbreak in Tibet Autonomous Region (TAR) and its transmission to different parts of TAR as well as Qinghai, Sichuan and Yunnan Province is a severe blow to the Chinese administration to achieve the annual growth targets. The slowing Chinese economy is grappling with various issues such as unemployment, property market slump and slowing manufacturing. In view of controlling the spread of Covid, the TAR authorities imposed lockdown in all the major cities including Lhasa, Shigatse (Opposite Sikkim), Shannan (opposite Tawang), Nagri (opposite Ladakh and Uttrakhand), Nagchu, Nyingchi (opposite Arunachal Pradesh) and Chamdo etc. The situation led to fall in tourism revenue. To contain the rising Covid 19 cases in TAR and curb anti-China feelings, the authorities suspend...

Beijing, China: Over the past decade, Beijing has been the lender of choice for many nations. It doled out funds for governments to build bullet trains, hydroelectric dams, airports and superhighways. However, as inflation climbed and economies weakened, China found itself in a precarious situation. Keith Bradsher, writing in The Sydney Morning Herald (SMH), said China holds significant sway over the financial futures of many nations and owes huge sums of money that may never be repaid in full forcing its officials to act as debt collectors in poor countries. When Suriname couldn’t make its debt payments, a Chinese state bank seized the money from one of the South American country’s accounts. When Kenyans and Angolans went to the polls in the presidential elections in August, the...

Beijing, China: Since the 2010s, subtle adjustments have occurred to Germany's China policy. Furthermore, the Donald Trump administration of the United States "trade war" with China impacted Germany's opinion of China, reported CGTN.Germany's China policy has been influenced by various factors internally and internationally.The first factor is the game between different industries and interest groups in Germany. Those enterprises and industries that have great interests in China still maintain a pragmatic and friendly stance towards the country.Yet for those enterprises without business dealings with China, they suggest reducing Germany's dependence on China's market to lower their competitive pressures, reported CGTN.The second factor is the coordination of different parties in the co...

“I pay 5.1 per cent interest on my mortgage,” said the ear, nose and throat (ENT) specialist, who bought a two-bedroom flat in Hangzhou, the capital of southeastern Zhejiang province, with a loan of 2 million yuan in 2018. “What kind of wealth management product or stock investment gives you such returns?” she asked rhetorically, referring to the slumping equity markets that has eroded investment returns. The medical practitioner has already repaid 700,000 yuan since 2018, including 150,000 yuan in one go in March. She is among thousands of Chinese borrowers who are in a hurry to clear their mortgages early amid waning consumer confidence over the country’s economy that has been buffeted by headwinds. It also comes as returns from stock market investments have taken a hit, with the ...

In June 2022, the Statistics Bureau of Laos announced that inflation had risen to a 22-year high of 23.6%. Staple goods have been fast becoming scarce and purchasing power of the country’s population declining at an alarming rate. According to the World Bank estimates, Laos' foreign and domestic debt shot up to more than $14.5 billion (€14.2 billion). There is a concern that an escalating debt crisis has been pushing the economy towards a meltdown. Laos' foreign exchange reserves depleted so low that experts worried that the Southeast Asian nation might be embarrassingly close to a loan default. There appeared no way out for the small, landlocked nation, except for external assistance, to honour its debt obligations. "It is on the brink of default," Anushka Shah, vice president and senior...

The ongoing war in Ukraine has had a profoundly destabilizing effect on existing trade arrangements and cooperation between Russia and the European Union. Western sanctions on Russia have escalated to hitherto unseen levels in the aftermath of Russia’s invasion of Ukraine. Russia has incurred very little lasting damage since the sanctions have been imposed. While the Ruble initially nose-dived, an increase in energy prices has resulted in billions of dollars of revenue every month from oil and gas exports. The sky-rocketing price of oil and natural gas has seen Russia make enormous profits on its energy sales. These profits have cushioned the impact of the sanctions while also causing enormous hardship in Europe and stoking unrest, division and a perception voiced by Italy’s former Deputy...

Last month, the US-led group – the Minerals Security Partnership – met on the sidelines of the UN General Assembly in New York to discuss priorities, challenges and opportunities in responsible mining and processing of critical minerals. The partnership, which was started in June in Canada, brings together the US, Australia, Canada, Finland, France, Germany, Japan, South Korea, Sweden, Britain and the European Commission. Attending the meeting in New York were five of Africa’s mineral-rich countries: the Democratic Republic of Congo (DRC), Mozambique, Namibia, Tanzania and Zambia. The initiative promises to help African nations with funding and information to improve the domestic processing of critical minerals. US Secretary of State Antony Blinken said at the meeting that the US...