South America has been a place that is rapidly developing and becoming more prosperous. South American CountriesĪlthough Africa shows Chinese domination more than South America, it is still a place where China is investing. A more alarming figure is that Zambia owes $7.4 billion out of $8.7 billion of foreign debt to China. Nigeria owes $3.1 billion out of its total $27.6 of foreign debt to China. Other African countries that have large debts to China include Nigeria, Zambia, Djibouti, Republic of the Congo, and Egypt. The China Development Bank also provided a $25.8 billion loan in order to stimulate the South African economy during the Cyril Ramaphosa presidency. This loan occurred during the presidency of Jacob Zuma, the current president of South Africa. One of these loans has been a $2.5 billion funding of the state-owned electrical utility Eskom. The country has received multiple loans from China. This has been another country targeted by Chinese loans as South Africa owes 4% of its annual GDP to China. South Africa is one of the fastest growing economies in the world and is the second richest country in Africa after Nigeria. Essentially, they could influence Kenya’s economy if they control such a strategic seaport. This would cause China to be able to control Kenya’s only international seaport and the largest seaport in East Africa. Kenya has also raised their worries about China’s moves to control an important seaport in the country, called the port of Mombasa, as a result of their extensive loans. This one example shows China’s increasing control over developing nations. Although this is a big range, the best case scenario is that China owns ⅕ of all Kenyan external debt. Kenya’s debt to China ranges from 21% – 70%. One country that has been one of China’s targets is Kenya. China takes raw materials from these developing nations in Africa, converts them to finished goods and then sells them at higher prices in African markets. As a result, China has heavily in African countries in order to gain this future economic prosperity.Ĭhina is now one of Africa’s largest trade partners, and they are making economic moves that are reminiscent of British colonialism in Africa and Asia. This represents a huge economic opportunity for China as they can also profit from the huge growth taking place in Africa. Countries like Nigeria and Egypt are expected to be in the top 15 economies by 2050, beating countries such as South Korea, Spain, and Italy.
Since Africa is a developing continent, there is a vast opportunity for rapid economic growth in the future. The cost being that China will be able to control a lot of state-owned assets or other infrastructures that are crucial to the Indonesian economy. All of these heavy investments show China’s increasing grip on Indonesia as all of those loans will come at a cost. March 2019 was when China and Indonesia executed an investment plan of $91.1 billion for 28 projects under the Belt and Road Initiative.
In April 2018, Indonesia signed five contracts worth $23.3 billion for national infrastructure projects. These three examples are part of the many projects China has funded in Indonesia. Finally, the $5.5 billion Jakarta-Bandung high-speed rail was built in 2015. In 2011, the $1.5 billion Sumatra coal railway was built. In 2003, a $445 million project known as the Suramadu bridge was built by a number of Indonesian companies working with China Road and Bridge Corporation and China Harbor Engineering Co. IndonesiaĪnother country that shows Chinese domination in the area is Indonesia. By doing this, China is gaining increasing ownership in countries like Sri Lanka, and they are redirecting the economic activity back to them in order to become more powerful and influential in world affairs. This resulted in Chinese ownership of several infrastructure projects that helped grow Sri Lanka’s economy in the first place.
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However, when it came time to pay back the loans with interest, Sri Lanka could not pay back the full amount. Sri Lanka used this money to build roads, skyscrapers, bridges, and other infrastructure that made the country wealthier and more economically progressive. One country that China has given billions of dollars in loans to was Sri Lanka. This makes Asia fertile ground for China to plant their economic seed and dominate the continent for years.
Asia is also home to many developing countries and is classified as on the poorer side. China dominated Asian affairs for years and still continues to dominate as it is the largest economy in Asia and second-largest in the world. China is known to be the global superpower based in Asia.
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