ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
International relations

China ensnares vulnerable states in a debt trap

Easy loans are used to secure influence and grab control of strategic assets

| China

"There are two ways to conquer and enslave a country," American statesman John Adams (U.S. president from 1797 to 1801) famously said. "One is by the sword. The other is by debt."

China has chosen the second path. Aggressively employing economic tools to advance its strategic interests, Beijing has extended huge loans to financially weak states and ensnared some in debt traps that greatly strengthen its leverage.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more