Will China become the world boss economically and otherwise ?
Our Readers' Opinions
April 21, 2023

Will China become the world boss economically and otherwise ?

EDITOR: Would China become a very powerful nation? Ladies and gentlemen there are many countries indebted to China. Even the great America has borrowed money from China. Countries that have relationship with China who lent them monies for projects have not benefited much, in the sense that China would send their workers to do the job, with few locals being employed. So while the country has to repay the loans, the monies go back to China.

At present and it has been for sometime now that China aids in paying loans for countries that are unable of meeting their payment. While we may hail that as good, the interest China charges is high. They are charging an interest of 9% on the loan. So while, a country would have been freed of its debt to a lending institution it is heavily indebted to China.

We all are aware of countries that are unable to repay loans owed to China have to give to them an asset, in most cases China would look for one of the most profitable assets. In some cases, it is an airport, seaport or factory. Added to that if China lends money for an industry and the country, because of the high interest rate, is unable to repay that country loses that industry to China.

So looking ahead, in this hard economic time where China is paying and would continue to pay the debt for delinquent countries, would mean that those countries are indebted to China and if they default due to high interest rate then China would claim assets from them. Which would mean that many countries can lose assets and be under the control of that country. As a result China become a world power economically.

It is therefore important that as a nation we be careful of our foreign policies. Switching from Taiwan to China can be detrimental for us. Yes we are indebted to Taiwan because of loans, but let us remember that these loans are termed soft loans where the interest rate is low so it becomes affordable and may take years to repay. On the other hand when we switch from Taiwan to China it would mean that China would have to repay to Taiwan the loans that we owe and then becomes indebted to China where the interest charged would be far greater. If unable of repaying we would stand to loose important assets to China.

Therefore if this trend continues where China repays loans for delinquent countries, soon or later they would be in control of many assets worldwide and so would become a world boss economically and otherwise.

Kennard King