US general alleges Pakistan $10bn in debt as result of China’s “predatory economics”

[Get Ya Wig Split]

US general alleges Pakistan $10bn in debt as result of China’s “predatory economics”

Pakistan is at least $10bn in debt to China for work carried out on the China–Pakistan Economic Corridor (CPEC), one of the centrepieces of the China’s Belt and Road Initiative (BRI), according to evidence given to the Senate Armed Services Committee last week.

General Joseph Dunford, chairman of US Joint Chiefs of Staff, said the debt was evidence of Beijing’s use of “predatory economics” to expand its global influence.

He said: “Pakistan owes China at least $10bn for the construction of Gwadar Port and other projects … China is diligently building an international network of coercion through predatory economics to expand its sphere of influence.”

He also alleged that participation in BRI schemes come at “a steep cost” when promises of investment go unfulfilled and international standards and safeguards are ignored.

Gen Dunford also cited Sri Lanka’s decision to grant China a 99-year lease and 70% stake in the port of Hambantota in 2017 and the $1.5bn construction debt built up by the Maldives.

Dunford warned that if China’s “predatory” loans were left unaddressed, it would have serious implications for the US military.

The official website of the CPEC argues that the investment in infrastructure will pay for itself through increased economic growth brought by improved communications and industrial investment and greater flows of goods and labour.

The official CPEC plan argues that Chinese capital and technology complements Pakistan’s “rich human and natural resources, huge potential for economic growth and broad market prospects besides a geostrategic location”.

Altogether, China has invested $60bn in BRI projects in Pakistan as part of roughly $340bn in spending between 2014 and 2017, according to a count kept by the American Enterprise Institute. The institute estimates that China’s total spending on BRI-badged schemes will pass the $2 trillion mark some time in the 2030s.

http://www.globalconstructionreview.com/news/us-general-alleges-pakistan-10bn-debt-result-china/

 

[Maxpane]

lol

 

[GumNaam]

man, can SOMEONE smack this so called "general" upside his head for God's sakes? his gi joes and gi janes are getting slaughtered left, right and center and yet, this jackass is busy worrying over Pakistan's "$10 bln" debt (big whoop) to China!

 

[Yaseen1]

This debt is due to illegal properties of zardari and nawaz in u.s,u.k and other western countries which they are not returning back to us

 

[GumNaam]

This debt is due to illegal properties of zardari and nawaz in u.s,u.k and other western countries which they are not returning back to us

agreed. I think it is high time that Pakistan, China and other friendly countries start raising hell and alarm in the u.n. about why the heck does looted wealth from third world countries always always ALWAYS end up in the u.s. u.k. or some other place in europe...we should start labelling these countries as being IMPLICIT in promoting corruption AND terrorism across the third world!

 

[beijingwalker]

I think a general's job is about military not economy, no?

 

[Khanivore]

So he's a General of Economics?

 

[GumNaam]

I think a general's job is about military not economy, no?

apparently not...bro you have NO idea how corrupt generals here are...

 

[Awan68]

This Indo/ US opposition can work beautifully for Pakistan if our leaders smarten up a bit, if u knw what i mean.

 

[fallstuff]

I think a general's job is about military not economy, no?

All the following ports are not generating enough money to pay back the loans. Many of these ports are finally going under Chinese control. The US military is concerned because in the end the ports might be used by the Chinese blue navy in the future.

Chinese Aircraft Carrier Liaoning was bought by a company in Macau to be used as a casino. Its now an aircraft carrier named Liaoning. I think the US General has a valid concern.

 

[Indus Pakistan]

I hope the good general keeps raising concerns in Washington. It would mean US trying to offer incentives to Pakistan to stave off Chinese influence. This competition between both US/China only helps Pakistan by raising it's bargaining value. And prevents Pakistan being taken for granteed. So general please keep shouting and scaring the politicians in Washington ...

 

[Khanate]

America is isolating itself the world over. You can't blame Pakistan for that.

All the following ports are not generating enough money to pay back the loans. Many of these ports are finally going under Chinese control. The US military is concerned because in the end the ports might be used by the Chinese blue navy in the future.

View attachment 547524

Chinese Aircraft Carrier Liaoning was bought by a company in Macau to be used as a casino. Its now an aircraft carrier named Liaoning. I think the US General has a valid concern.

Might be?

 

[valkyr_96]

Uncle Sam and General Jarhead

 

[fallstuff]

America is isolating itself the world over. You can't blame Pakistan for that.





Might be?

Its more like a "will be" . Chine knows very well if it just goes ahead and get access to bases and airbases they will run into stiff US opposition, IMHO China is just taking a long way, more like a stealth way to get strategic advantage. China has trillions $ worth of reserve that can bring in more than just a simple return. They will get port access and what not.

Most of these ports have failed feasibility studies, why else China would loan all these money without a way to get it back while gaining strategic foothold.

Pakistan in this process is getting large scale infrastructure developed with zero out of pocket cost !

 

[武成王]

All the following ports are not generating enough money to pay back the loans. Many of these ports are finally going under Chinese control. The US military is concerned because in the end the ports might be used by the Chinese blue navy in the future.

View attachment 547524

Chinese Aircraft Carrier Liaoning was bought by a company in Macau to be used as a casino. Its now an aircraft carrier named Liaoning. I think the US General has a valid concern.

China is only interested in large and deep ports can serve huge volume containers, additionally these ports are hardly ideal for military purpose, e.g. Hanbantota port of Sri Lanka where is very close to India coast line and can be easily attacked by India Navy.

Most ideal military ports for blue water navy are islands in the oceans far away from continent land, which are almost occupied or colonized by UK, France and US etc centuries ago, these ports are typically lack of business value compared to the ports in your diagram.

I don't think US has valid concern from military stance. They in fact worry more about China growing economic and political influence. US established more than 100 oversea military base, China has only 1 in Djibouti shoulder by shoulder with American there, of course for UN peace keeping, combating pirates etc tasks.