What’s going on with Chinese loans in Africa?
Did China seize an airport in Uganda?
Welcome to China Uncensored. I’m Chris Chappell.
The Belt and Road Initiative
is China’s plan to build infrastructure projects all around the world.
And infect the world with terrible earworms.
“The future’s coming now oh oh oh oh oh oh The belt and road is how oh oh oh oh oh oh”
Yes, I did have to play that.
Publicly, the Communist Party says the Belt and Road is about connecting the world through
economic development. But in reality, it’s their plan for global economic colonialism.
Go around the world to poor developing countries, and give them huge loans they can’t pay back.
Meanwhile, the infrastructure they build often has, well, let’s call it Made in China quality.
And last week, reports came out that Uganda failed to make good on one
of the loans it got from China, and so China seized its airport.
But now both Uganda and China are saying that’s not true.
Apparently the confusion happened because Uganda sent a delegation to China
to renegotiate part of the loan agreement. The Ugandan government wanted to renegotiate things
like whether they could spend certain money without approval from Beijing.
And China refused to renegotiate. But Uganda hasn’t defaulted on the loan. At least not yet.
A government spokesperson said “The Ugandan government has no
intention of defaulting on loan repayments to China.”
Well, no one plans on defaulting on a loan.
But it happens. So what will happen to the airport if Uganda can’t pay China back?
No one seems to be answering that.
The Chinese embassy in Uganda issued a statement saying
“[The loan was] signed voluntarily through dialogue and negotiation on equal footing
without any hidden terms or political conditions attached.”
Which is a super suspicious response to the question “Will you seize control of the airport?”
“The loan was voluntarily signed”...Right.
“Uganda currently owes China $1.6 billion in loans.”
Which is about 4% of Uganda’s total GDP.
So could China seize the airport if Uganda defaults? Well, maybe.
For context, a decade ago, China helped Sri Lanka build a huge shipping port.
But by 2017, Sri Lanka was struggling to pay interest on its foreign debt,
and the port just wasn’t doing as much for the economy as they’d hoped.
So Sri Lanka sold China a 99-year lease on a majority stake in that port—
meaning China has essentially taken over a port it helped Sri Lanka build.
Now you could argue that “technically” China didn’t “take over” the port.
They just have a majority share, and are running it.
So if Uganda is struggling to repay its loan, I don’t think we’ll see China
“take over” their airport. But they might just, you know, get a sweet leasing deal.
I believe that’s what Xi Jinping calls win-win mutual cooperation.
Now despite this history of sketchy deals with China,
two more African countries are joining the Belt and Road Initiative.
Including Eritrea, a brutal dictatorship after China’s own heart.
Nevertheless, anti-Chinese sentiment might be on the rise in Africa.
Including in another lovely dictatorship, the Democratic Republic of Congo.
China has been very active in mining operations there.
Nothing beats cheap child labor and a government that looks the other way, am I right?
Last month, 5 Chinese citizens were kidnapped there.
Very few details were given. Though the Chinese embassy said,
“There was little possibility of sending help in the event of an attack or kidnapping.”
That’s China’s *actual* wolf warrior diplomacy. Do absolutely nothing to help its citizens abroad.
Now China is flat out asking all Chinese citizens in the eastern part of the DR Congo to leave.
But that’s not stopping the Belt and Road Initiative, no! In fact, China just held its
eighth Forum on China-Africa Cooperation. Xi Jinping promised to ​​send one billion
doses of Covid vaccines to Africa. Yes, China will sell them Chinese-made vaccines that are
kind of effective, to fight a virus that was probably created in a Chinese lab. So generous!
Meanwhile, Xi Jinping even called China’s relationship with African countries
a “partnership of equals”. Presumably a partnership
where all countries are equal...but some countries are more equal than others.
And now it’s time for me to answer a question from you,
a fan who supports China Uncensored on Patreon or Locals.
Kirsten Dress on Patreon asks: “China seems to steadily push the boundaries on violating
Taiwanese airspace. At what point will the world (especially NATO) accept retaliation or is this
slow but steady invasion of Taiwan never going to be sudden enough for today's attention span?”
Great question, Kirsten.
China has not technically crossed into Taiwan’s airspace, as in the airspace
directly over the country. But it is slowly pushing further and further
into Taiwan’s Air Defense Identification Zone, which they didn’t use to cross.
When that happens,
Taiwan’s air force scrambles its planes and tells the Chinese planes to leave, and so far they have.
But if Taiwan shoots a plane down, then it’s Taiwan’s fault for starting a war. At least
that’s what the Communist Party hopes for. But if Taiwan just lets Chinese planes encroach, then
the Party will gradually be able to claim Taiwan. Which is also what the Communist Party hopes for.
But rather than wait for a slow and steady invasion, there’s lots of things NATO countries
can do. Like each time China encroaches on Taiwan’s Air Defense Identification Zone,
countries should push back—
but in a non-war way. Like by stationing additional troops in Taiwan, or sending
high-level officials to visit Taiwan. The Chinese regime will get the hint.
And if not, there are bigger non-war tactics, too—like doing joint military drills with Taiwan.
The question is, will NATO countries actually push back?
Thanks for your question, Kirsten.
And thank you all for watching. Be like Kirsten
and support our work on the subscription platform Locals
or the crowdfunding platform Patreon. We rely mainly on viewer support to keep this show going.
Once again I’m Chris Chappell. Thanks for watching China Uncensored.