China debtbook diplomacy

Abstract

China is one of the fastest growing economies of the world and is on its way to become a superpower. China has been undertaking several infrastructure and real asset creation projects across the Asia, Europe and Africa with its flagship Belt and Road Initiative. In addition to serving an economic motive of increased trade and co-operation through improved connectivity, this project seems to further China’s geopolitical interests. China is extending loans of hundreds of billions of dollars to developing countries for commercially non-viable projects which have huge chances of default. Many believe that China would demand for controlling stakes in these assets at the time of default and establish a strong geo-political presence across major strategic areas to establish its supremacy