China granted $48.5bn in bailing out to Pakistan

[beijingwalker]

Is there nobody who can pat on Xi's shoulders and say, bubba that's a bad idea?


What will they take over after building 6 and 8 lane highways, railways and airports? They can't cart them off to Beijing.

Could be a group decision I think China now is going easy on BRI

 

[etylo]

China burned 1 Trillion+ USD in their foreign reserves on developing countries and those countries wasted all the money by being basket cases.


Anyone with half a brain knew that the BRI was always a creditor trap.


Anyone saying "Debt Trap" with a straight face knows literally nothing about economics.


The fact that those countries have the gall to then blame China for their own incompetence is just chef's kiss.


BRI is Xi's worst idea ever.


Imagine the industries China could have built in China with that Trillion+ USD in investment if they simply invested in themselves.

China burned 1 Trillion+ USD in their foreign reserves on developing countries and those countries wasted all the money by being basket cases.


Anyone with half a brain knew that the BRI was always a creditor trap.


Anyone saying "Debt Trap" with a straight face knows literally nothing about economics.


The fact that those countries have the gall to then blame China for their own incompetence is just chef's kiss.


BRI is Xi's worst idea ever.


Imagine the industries China could have built in China with that Trillion+ USD in investment if they simply invested in themselves.

Out of the trillion dollar BRI projects, only the energy supply lines to Russia and five central Asian countries are crucial and urgent to Chinas security and development. All the rest projects are not very important and urgent for Chinese internal development and security. I think BRI has at least over blown in size like involving many countries in Africa and Latin America that have no consequences for China. China should has at least scaled down the size of BRI like half. The original intention of BRI has a strategic value that now gets out of control and may not be realized as intended. They should have invested more wisely a large portion of the trillion dollar in China's poor areas for development instead.

 

[mike2000 is back]

To be fair, I can't blame China per se. Its not their fault. They are after their own strategic interests and profits. Just like any sane country does. Its up to the host country to bargain its assets/resources to get a better deal for themselves, its not up to the creditor to workout a favourable deal for you to his detriment. Nobody does that. Let’s face it: these are naïve hopes. Chinese capitalism, like any other capitalism is about profit, not philanthropy like some fools and ideologue will like to believe. Lol
So it's not about the huge loans or relatively high interets rate provided by China that's the problem, its how those funds were used and how rhe contract was negotiated and to what end(considering the economic development and low skilled labour of the country).
I think this CPEC was built around a fatally flawed premise. It presumed that infrastructure( roads, bridges and electricity ) alone will create growth and jobs. Lol This is like assuming abundant water, soil, and fertiliser will yield a rich harvest. But the crucial input is seed i.e human capital. And here’s where things went awry I believe. Since Pakistan fails in this regard(again due to past government policies of under investing in education, focusing on skilled technical programs,/trainings for youths, setting up an enabling environment to promote private companies and encourage innovation etc.).So since the education system gone berserk, it offers only low-grade human capital to industry. Because it seems indoctrination was promoted over knowledge and skills, The country is stuck with an ocean of unemployable youth. I'm not even counting other factors like Islamabad’s bureaucratic corruption, internal politicking, and heightened security threats in many of its restive states, all things which discourages investors and even when they do invest its prone to massive corruption.
So it's more about Pakistan's own internal issues and system, external actors are secondary. I'm short, the country has all the hallmarks of a quasi failed state to be honest. That she still manages to crawl along is actually a miracle of some sort. lol

 

[my2cents]

There is a silver lining in all this. There is a saying that if you owe a billion dollars to a bank, you own the bank. Using that formula, with $48.5 billion, China has great interest in Pakistan's economic stability. So, China will push, cajole and encourage Pakistan to maintain at least a modicum of economic viability.

Not with your establishment and their cronies at helm.

For China, with its massive $17.7 trillion GDP, $48 billion disbursed over a period of 15 years would not be a stretch. It is not going to break the bank.

For comparison, India with its $3 trillion economy has given out $15 billion in soft loans and close to $4 billion in aid to its neighbors in the last 8 years.