Chinese capital flowing into Belt and Road Initiative projects surged 30% on the year to a record $20.1 billion in 2017, even as the country's overall outbound foreign direct investment fell for the first time, dropping 19%. Show
Data from the commerce ministry shows BRI investment in 64 countries in 2017 surpassed a previous high of $18.9 billion in 2015. And that record looks set to be beaten again this year -- Chinese investment in Belt and Road countries, excluding in the financial sector, already jumped 12% on the year to $9.5 billion in the first eight months of 2018. Overall FDI in 2017 fell to $158.2 billion. BRI outward investment made up 12.7% of the total in 2017, up 4.9 percentage points from 2016. ... The Center for Global Development, a U.S. think tank, released a report in March naming eight countries that could fall into China's debt trap -- Kyrgyzstan, the Maldives, Laos, Djibouti, Mongolia, Montenegro, Tajikistan and Pakistan. Investment in Laos nearly quadrupled, while that in Djibouti also soared 70% in 2017. When Sri Lanka handed over its southern port of Hambantota to China in December 2017, many saw the episode as a cautionary tale for other countries that are eagerly accepting Chinese finance to build major infrastructure projects. Sri Lanka granted a 99-year lease on the port to China Merchant Port Holdings in the hope of cutting its debt to China, which is one of the highest among emerging economies. China, for its part, has gained an important beachhead that could help its attempts to expand military influence in the Indian Ocean. To continue reading, join our community and benefit from
View subscription options China's $4.5Bn investment in an oil refinery in Sri Lanka's Hambantota Port has re-ignited fears of a debt trap. Is this too simplistic? And how can Sri Lanka use FDI to build its energy security. Read my take in the Nikkei Asian Review. https://lnkd.in/gF2rn7mi chinadebttrapsrilankaHambantotacompetitionpolicyenergySri Lanka's China 'debt trap' fears grow as Beijing keeps investingasia.nikkei.comGood analysis on the evolving economic issues under China's BRI for Sri Lanka. While the argument on investment in Sinopec by China can benefit Srilanka in terms of better access to Fuel is good but I think we need to see how this will pan out under the current climate change discussion with the noise getting shriller on fossil fuel usage.... May not affect Sri Lanka in the short run but with higher investment in refining capacity and if global demand comes down then the viability of these investments can be affected. This needs to be factored in. But, I think, China's enthusiasm in investing in Sri Lanka has strong geopolitical underpinnings : (i) Counter India's influence on Sri Lanka; (ii) leverage Sri Lanka's strategic position in Indo-pacific region. Let's not forget that China already has 100 year lease for Hambotota port and controls the strategic fuel warehouse close to the port. China's position on the strategic sea routes needs to be reckoned. This gains significance with China facing issues in Malacca strait and efforts underway for alternate routes. So, the returns to the investment by China is not necessarily in terms of debt repayment but others as well..... Thanks Ganeshan Wignaraja for sharing this post. In addition there would very significant environmental air pollution concerns too. We need investments in Renewable Energy not Oil refineries that will add to pollution and increase Carbon emissions. Ruwan Wijewardene and Ananda Mallawatantri please check on this. At COP28 the push is to phase and transition out of fossil fuels. Further the pollution from oil refineries is at unprecedented high levels. In the Middle East growing concern that Sri Lankan authorities & people should be aware of and ensure we DON’T permit setting up of any oil refineries in Sri Lanka 🇱🇰 https://m.youtube.com/watch?v=nDmtnFV4njA&noapp=1 Nikkei Asia just parroting the often adjectives used to qualify China to smear or to instill fear! Oil is hear to stay but at the same time investment in renewables should continue. Sri Lanka should not make the mistake of banning fertilizers as the previous administration did with disastrous effects on its agricultural sector. The biggest deals last year were in the oil sector! In the Sri Lanka restructuring 52%!of debt being restructured are Chinese debt. China eximbk debt is 10% but the 42 % Chinese debt is at above market rate. Balance of debt are mainly supras and bilateral which is subsidized debt. See more comments To view or add a comment, sign in More Relevant Posts
Visiting Senior Fellow ODI and Professorial Fellow Gateway House 3w ODI has a global reputation for evidenced based research and policy analysis in the developing world. I am pleased to support ODI’s work drawing my experience of Asia’s rapid economic development ODIasiapacificeconomicdevelopmentforeignaidA very warm welcome to our new Visiting Senior Fellow, Dr. Ganeshan Wignaraja! Ganeshan is a long-term senior associate of ODI. In a career spanning over 30 years he has held senior roles in international organizations, think tanks, government and the private sector. As an expert on economics and trade policy in Asia, one of the key issues Ganeshan will be keeping a close eye on is India and South Asia’s growth prospects in this critical election year. We are delighted to have him on board! For more information about Ganeshan, visit: https://lnkd.in/ensxYmDU What is the debt of Maldives?Asia Nikkei reported last October that the World Bank's assessment said Male had an obligation to spend an average of $300 million a year to service foreign debt from 2022 to 2024. "Despite expectations of reduced deficits, Maldives' total debt is set to remain high at over 115% of GDP," it had said. Which country owes China the most money?List of the top 10 countries in debt to China. Pakistan. Topping the list is Pakistan, which has accumulated substantial debt owed to China. ... . Djibouti. ... . Sri Lanka. ... . Maldives. ... . Laos. ... . Mongolia. ... . Angola. ... . Venezuela.. How much China invested in Maldives?The Export-Import Bank of China has provided more than $1 billion to the Maldives for upgrading an airport, a new bridge, and relocating Maldives's port. What is the Maldives crisis in 2024?The Maldives' post pandemic growth has been strong, but recently normalized. Growth is projected at 5.2 percent in 2024, as tourist arrivals are expected to rise further. Nevertheless, fiscal and external vulnerabilities have increased, calling for urgent policy adjustment. |
