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HomeNewsOpinionHas China’s chequebook diplomacy put it on the back foot?

Has China’s chequebook diplomacy put it on the back foot?

China is often brazen about its ways and seldom cares to clear its stand. It is also unmindful of the enormous suffering it has brought the world. From here, if there is a course correction, it is one born out of necessity 

January 26, 2021 / 08:30 IST
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(Image: Reuters)

Recently, Chinese President Xi Jinping addressed the leading cadre of the Communist Party of China (CPC). Xi said he believes “time and momentum are on China’s side”, despite challenges, such as COVID-19 and others.

Yet, behind the confident facade and posturing that China has adopted since the pandemic struck—which has killed over 1,944,750 people worldwide and continues to crush global economy — there may be a certain defensiveness. A couple of events hint at this.

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First, is the cancellation of debts owed by the Democratic Republic of Congo (DRC). Beijing wrote off $28 million in matured loans and pledged $17 million of support to the country. While the move may seem to be a good will gesture — Beijing has major mining investments and interest in the DRC — there is a catch. The DRC signed on to China's ambitious connectivity project, the Belt and Road Initiative (BRI), becoming the 45th country to do so.

But why did China have to cancel debts for a country? Does it reflect that Beijing is under considerable strain to prove that its chequebook diplomacy in not out to ensnare poorer countries? Allegations of Beijing's debt trap are borne out by the outcome of its development aid to countries such as Sri Lanka and the Maldives.