Beijing. Belt and Road, the dream project of Chinese President Xi Jinping, has now become a big problem for the dragon. China took forward the Belt and Road project to rule the world and started spending a whopping amount of $1 trillion. Now this project has become a problem for China. In the last 3 years, China has either lost $78 billion in the Belt and Road Initiative or had to renegotiate it. China has had to restructure the debt of many countries including friend Pakistan.
According to the report of the Financial Times, China’s $ 1 trillion Belt and Road project has now become a victim of bad loans. Because of this, in the last 3 years, the loan amounting to $ 78 billion has either been waived off, or it has had to be restructured. Because of the BRI project, China has become the largest creditor country in the world. 78.5% of China’s loan was given for road, railway, port, airport and other infrastructure projects.
China spent $1 trillion on BRI New York-based research institute Rhodium Group has given this latest information on the basis of its data. Rhodium said that in the three years between 2017 and 2019, only $17 billion of loans were either forgiven or restructured. There is no official data on how much loan has been given under BRI in the last decade. Although it is estimated that $ 1 trillion has been spent worldwide by China.
Apart from this, China has given huge amount of loan to 150 borrower countries to ‘save’ so that they do not default. Such bailout packages ranged from 2019 to the end of 2021 to the tune of $104 billion. Not only this, if we look at the figures from the year 2000 to the year 2021, then this total amount reaches 240 billion dollars. Countries that borrowed from China slowed growth, raised interest rates, and increased debt levels in developing countries.
Jinping’s dream is BRI project Negotiations for restructuring the BRI loan have reduced now as compared to the year 2020 and the year 2021. Experts said that the shortcomings in the BRI project are now increasing. The BRI project is directly linked to the prestige of Chinese President Xi Jinping. A decade ago, Jinping termed BRI as the ‘project of the century’. Although there are many countries that are welcoming Chinese investment. China is now adding these countries to the global security initiative and global development initiative being compared to NATO.
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