Ankit Patil

Currently, nations have a gone through a lot due to the unexpected pandemic and several other things! The economy has already fallen for many, while the governments are trying their best to keep the economy of the country stable. However, there are still some countries who haven't much economy problems like several others. It's probably because of their systems before the pandemic and how they hold themselves. If we look at the countries given below, it's clear that The United States and China are one of the richest countries in terms of GDP growth rate! Which is actually very impressive for such a country! But have you ever wondered how does China manage to stay in the top leagues? Have they been doing so good or is it something else! Yeah! The Chinese government has a huge propaganda of dirty works! These filthy plans actually never came to notice to many until now! Let's uncover The Dark Side of the Chinese Government*. Please understand here I solely speak about the Government of China and not it's citizens! So what was China's so much reliable and powerful weapon that it had overthrown many countries with!? Debt Trap Diplomacy!! So what is Debt trap? It's basically a situation where one is unable to repay their debts to someone due to the very high Interest rates' and limited time period, hence leading the individual to bankruptcy! It's a policy badly used by few to destroy ones’ financial structure for its own growth. Developing countries are the worst hit from this policy! Currently, this policy is being exponentially used by the Chinese Government on such countries. The Chinese government has already lead few countries to bankruptcy by using this policy, namely several African countries and Sri Lanka as well. Let's take a simple explanation for the basics of this! Suppose you take a loan of X amount for any purpose, of course after you have a fixed time period in which you have to return the sum X with interests (if applied). Now if your unable to repay, you have to keep everything you earn hereon on lease to the lender. It's easy to repay on lease as well if the "X” is small and repayable! But what if it was huge! Real Huge! In case of Debt Trap Diplomacy though, the lender knows that the borrower will not be able to repay back the debt in the given period of time! The Chinese did something like this and it has turned a great profit for themselves! Back in September 2019, the Chinese pledged to invest as much as $60 Billion in African countries in order to help them establish and sustain a good life towards their people, believing that China- African community would grow strong and it was a win-win scenario for both of them, according to the Chinese President. However, the African countries were not able to repay this debt back to the Chinese, as an agreement China took away several African ports for its personal use. Concluding that the win-win situation totally favoured China for they were able to gain complete ownership to major ports in Africa while African countries went bankrupt and caught up in the Debt Trap Diplomacy! Few of these countries are Sudan, Republic of Congo with estimated $100+ Bn of Debt to China. Africa is a resourceful continent, all the gold, cheap labour and few more assets are why china chose to exploit them and push them to bankruptcy. These countries are in no shape of repaying the debt for the next 100 years. That worse! Sri Lanka too shares the same story. China lent the Sri Lankans a small 1.5 Bn for building a port in Hambantota. Unable to repay the debt, China took over the port and made it accessible for themselves. Sri Lanka being a small country is in no condition to repay this debt any soon. The win-win scenario was always in terms of the Chinese, if the country is able to pay the debt, they win, if not, they get access over their assets and still win! Well, it's believed that the Chinese are acquiring many ports around the globe by the policy, and have been able to strategize its armies and dominate the same. Well, China indeed has some huge plan under its sleeve, waiting for the right time to surpass every other nation and dominate over them! Thanks for reading and I hope that I was able to make you understand on the Chinese plans! We have a few more blogs rolling out soon on the same very soon! It's china we're talking about, of course you can't cover it up in one! Keep reading and visiting! Signing of! Going back in history, China joined the World Trade Organization (WTO) in late 2001 where the negotiations were laid and China had to open itself for trade and commerce with all the other world countries as a part of the negotiation. China never really did follow the negotiation though! They never imported anything from any of the countries rather they kept exporting largely to other countries at a very cheap cost. These Chinese products being sold in other countries were bought and used widely by people due to the cheap price. This ruined the local markets due to which businesses got shutdown. Such countries beard huge losses in their GDP rates as there wasn't any economic development! China kept tremendously exporting their goods to other countries, for example, Australia has lots and lots of Steel and other metals which was imported from China, Australia has still not been able to consume the already stocked steel it has and China is yet continually exporting it to China at lower rates, thus destroying local steel markets in Australia! This process of extradition Exporting is called Dumping! Australia isn't the only country facing these issues, USA, Japan, India are one the biggest victims of the dumping process! Indian markets are flooded with Chinese goods, be it electronics, toys, food, technology, everywhere. Since the cost of these products is quite cheaper than that of the local markets, people tend to purchase them more while local made products remain unsold and producers face bankruptcy. The local talents have always been neglected due to the Chinese! In order to prevent this anymore, countries like Australia and the USA have started heavily taxing the Chinese government for exporting their goods! My only request to each and every one reading this would be to please use local goods and respect our own countries' goods, companies, tradition!