Belt and Braces Reboot

China’s Belt and braces initiative is failing with many of the loans going bad. China is now trying to make the best of a bad job with these loans:

AidData estimates that 80% of China’s overseas lending portfolio in the developing world is currently supporting countries in financial distress. Overdue repayments to China are also soaring—in absolute terms and as a proportion of total overdue loan repayments to official (i.e., bilateral and multilateral) creditors.

AidData is based in the economics department of a US university.

The report is up to 2021 as China does not publish figures itself.

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China is quite happy to take strategic assets in payment in lieu of cash. It’s how New Colonization is played.

The Captain


I wonder if they’ll rely on soft power or send in the Marines. The US sent Marines to Haiti in 1914 to protect its strategic assets according to the US State Dept. Historian:

“In 1914, the Wilson administration sent U.S. Marines into Haiti. They removed $500,000 from the Haitian National Bank in December of 1914 for safe-keeping in New York, thus giving the United States control of the bank.”

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Nationalizing assets against China will also rise. It is not a one way street.

We found that out in the 1950s and 60s. The US could not commit to military action to reclaim an oil well or a road. Even if it was oil wells across much of a nation. The claims fall short regardless of what money we pumped in. It is not ours. China does not have the forward offensive power to wage such petty wars so nationalizing assets they take will happen within years with no blowback.

Heck if many of those borrowing nations turn to become democratic republics we will ally with them depending on the locations and military needs.

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