China’s “debt-trap diplomacy”

China is funding dual-use infrastructure projects from the Pacific to the Horn of Africa, fuelling “debt traps” that will give Beijing leverage to gain strategic and military power

1
Vanuatu: Beijing has provided US$54 million loan to build 360-metre wharf at Luganville and $47m to expand Bauerfield International Airport. 
Both projects can double as military bases
2
Myanmar: China is building $7.3 billion deep sea port and $2.3bn industrial park at Kyauk Pyu
3
Sri Lanka: Struggling to pay its $8bn debt to Chinese state-controlled firms, Sri Lanka hands over $1.3bn strategic port of Hambantota to China
4
Pakistan: China is constructing major port facilities at Gwadar as part of Beijing’s $62bn Belt and Road investment in Pakistan, mostly in loans. Pakistan’s  external debt already stands at $82bn
5
Djibouti: Home of China’s first overseas military base. China has taken over Doraleh Container Terminal and is lending $660m for infrastructure development. Djibouti hosts strategic U.S. and French military bases

1 VANUATU

2 MYANMAR
Kyauk Pyu

3 SRI LANKA
Hambantota

4 PAKISTAN
Gwadar

5 DJIBOUTI

IRAN
Chabahar
Port developed by India

CHINA
Beijing

RUSSIA
Moscow

AUSTRALIA
INDIA
JAPAN
TAIWAN
Guam
South China Sea
Pacific Ocean
Indian Ocean

Xi Jinping Chinese President

Sources: Bloomberg, Lowy Institute, U.S. Naval Institute
Picture: Getty Images
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