IT'S ODIOUS DEBT, JUST CANCEL IT:

In May 2017, the Chinese leadership hosted the official launch event, the Belt and Road Forum, in Beijing. Authorities cordoned off large parts of the city center as representatives from 130 countries gathered at the National Convention Center. It was said that China intended to invest $1 trillion around the world. In his speech, Xi painted an image of a networked world. Afterwards, state guests sung their praises for the Chinese. "President Xi deserves thanks for this initiative, which is very promising and timely," Vladimir Putin said. And Recep Tayyip Erdoğan of Turkey even described it as an "initiative that will put an end to terrorism."

In truth, the initiative serves not least to salvage the Chinese economy. The growth model of the People's Republic reached its limit years ago, and to ensure that economic growth increases year after year, the state itself invests in roads, new airports and in the dense high-speed rail network. The result is a significant mountain of debt. The national railway alone has accumulated debts of almost 1 trillion euros. One important aim of the New Silk Road is to create additional markets for Chinese corporations.

According to a survey by the American Enterprise Institute, projects valued at $838 billion were underway by the end of 2021. The trillion-dollar figure targeted by Xi isn't far off. But numerous loans are at risk of default. A study by the analyst firm Rhodium Group estimates the total value of Chinese foreign loans that needed to be renegotiated in 2020 and 2021 at $52 billion. There have also been several reports about bridge loans that Chinese banks have granted to prevent payment defaults. Such emergency loans have been granted to Pakistan, Belarus, Mongolia, Argentina and Sri Lanka.

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