Major Taiwanese news network Liberty Times Network (LTN) recently reported on China’s grand One Belt One Road plan, which involves a potential investment total of US$8 trillion and involves 68 countries in Asia, Africa, and Europe. The report showed however, that it actually has brought an economic crisis to eight countries: Djibouti, Kyrgyzstan, Laos, Maldives, Mongolia, Montenegro, Pakistan and Tajikistan. Not long ago, the Center for Global Development (CGD) published its analysis on the impact of One Belt One Road. The analysis indicated that many countries developed significant dependency on China and their debt level increased significantly. For example, the African country Djibouti’s Chinese debts are now as large as 91 percent of its GDP. Another example is Pakistan’s development plan of its Port of Gwadar. Now China has pocketed around 91 percent of the Port’s income with only 9 percent left for Pakistan. The income was obtained significantly based on the deep tax cut that Pakistan offered. Sri Lanka had to rent its port city Hambantota to China for nearly one century due to the fact that the government could not pay back its debt (US$1 billion) to China.
Source: Liberty Times Network, March 6, 2018