Friendship with China has proved fatal for countries like Sri Lanka, Myanmar, and Pakistan. China’s debt trap policy and has put all these countries in a debt trap.
Relations between Myanmar and China
Myanmar is bordered on the north and northeast by China and is China’s closest neighbor faced a coup in 1998 and world sanctions followed. China was only the country that supported Myanmar. It signed a major trade agreement with China.
In 2007 Myanmar faced strong western sanctions and China became its only trade partner of Myanmar. It also occupies the largest share in both the imports and exports of Myanmar.
In 2019, the bilateral trade stood at about USD 12 billion. In 2019, China occupied a 31.7 % share of its exports. The connection with China was important for the survival of Myanmar and economic prosperity. The economic engagement strategy like the Belt Road initiative needs to be very carefully considered.
Relations between China and Sri Lanka
Sri Lanka -the island nation has declared a state of emergency and it is going through a major economic crisis.
Sri Lanka was already in debt. It had taken huge loans from China. In fact, it has succumbed to China’s debt trap policy. China has then turned a blind eye.
By 2016, China was the country with the most foreign investment in Sri Lanka. China gained a strategic advantage in the county. It is involved in 50 projects including Hambantota and Colombo Port City. Both have now been given 99 years of lease to China. Today China holds the largest percentage of the debt of Sri Lanka.
Relations between China and Pakistan
After the formation of Pakistan, it flourished. It was a progressive country. In 1963 an economic cooperation was signed between China and Pakistan.
In 2013 China-Pakistan Economic Corridor (CPEC) (which was a part of China’s Belt and Road Initiative.)was established and it further strengthened the economic ties between both nations. The CPEC overcharged Pakistan by $3 billion . Pakistan has been facing high inflation. It has seriously fallen in China’s debt trap policy and is in a state of collapse.
Published by – Supreeti Ghosh