For years now we have been seeing China's transformation from a major Asian power to a global power. China has been modernizing its armed forces and has been working on policies which have made it a major threat for India as well as other countries. As China grew its aggression has also grown quite a bit as we see it claiming new parts of lands and sea's near its borders, China has disputes with not just India but with nearly all neighbouring states as well. From land border disputes with India on Aksai Chin and China claiming parts of North-East Indian states like A.P to its Sea border disputes with various countries like Philippines Vietnam etc and the issues in South China Sea, China is in border disputes at all sides.
These kind of issues can lead to strains and possible war like situations like they did in 1962 & 1967 (it is not discussed as Sino-China war of 1962 maybe because India won this one, thanks to presstitutes) and so such topics like "THE MOST FEARED WEAPON" or "TRUMP CARD" etc are a hot topic.
In this post I will tell about what I feel is THE MOST DANGEROUS CHINESE WEAPON.
The most dangerous weapon of China is not a Nuclear submarine or a jet or even some Nuclear missile but in my opinion it is Chinese CHEQUE BOOK.
Now this is not a very relatable thing as far as only weapon based bloggers are concerned as most defence blogs and even a large chunk of blogger community does not consider economical factors and politics & are mostly concerned about weapons and only compare the various weapons, but in the today's world diplomacy and political wars are most effective. Wars are fought not just on borders by soldiers and generals but today wars are fought diplomatically by policy makers round the globe.
So what is this CHEQUE BOOK DIPLOMACY and why do I say it is so dangerous?
Well all nations round the globe need money and funds for running government and for development of facilities and infrastructure, this is especially true in case of poor nations who have shortage of funds for development. The WORLD BANK offers loans to these nations at rates varying from 1.5-5 % (generally) depending on various criterias such as their debt and economy and various projects are funded via this, at times countries which are in debt or have bad economy or the project shows no returns or for any other reason the world bank refuses to fund the projects, this is where China and its big cheque book comes into play.
China offers huge amounts of money to such nations as loans, now its not a new thing for a big state to give a friendly state loans but what's different in this scenario is the rate of interest which is charged. While other friendly nations such as India gives soft loans at mere rates of 1% or at times even lesser which is amongst the lowest rates, China on opposite side gives loans at rate of 8-12 % and at times with hidden conditions which make it worse, the Chinese call them soft loans at rates of 2-3 % or concession loans but the additional conditions attached to it make the real calculated interest rates very high.
What happens next is the nation is unable to repay the money it owes to China and this way the nation becomes an economic slave of Chinese Govt. The host nations government has to surrender its resources and infrastructure to Chinese government which then starts eating the nation from within and make it hollow. Not only resources but also the host nations diplomatic policies are then influenced by Chinese government.
So this is why I consider the Chinese Cheque book its most effective weapon as it can not just destabilise & enslave an entire nation easily
but it paves way for next target which can be the neighbour of the state. Chinese govt can use the host nations puppet government as a proxy and wage political and diplomatic wars against other nations.
In next part of this post I will give examples of nations where China has effectively used this debt trap policy and gained control of the important strategic locations.
IF YOU LIKE THE POST DO LIKE (g+) AND SHARE