While Western imperialism has for years condemned developing and underdeveloped countries by applying modern borrowing with the help of the IMF, now China is using "debt diplomacy" as a weapon and expanding the field of economic exploitation. Montenegro, which cannot pay its loan debt, is on the agenda to give land to China in return for its debt.
China, which has been giving loans to many countries of the world with its global expansion in the last 20 years and fully opening its mouth, is seizing the lands and immovable properties of countries that have difficulty in paying their debts. The Chinese government gives billions of dollars of loans to infrastructure projects of underdeveloped countries in Asia and Africa. China, which has recently lent large amounts to Nigeria, Pakistan and Sri Lanka, confiscates the real estate it has invested in, in case the countries have difficulty paying their debts.
With its global expansion in the last 20 years, China, which has opened its mouth to many countries of the world, seizes the lands and immovable properties of countries that have difficulty in paying their debts. The Chinese government invests billions of dollars in projects that will strengthen the infrastructures of underdeveloped countries in Asia and Africa, which are called third world countries. China, which has recently lent large amounts of loans to countries such as Nigeria, Pakistan and Sri Lanka, confiscates the immovables it has invested in pursuant to the agreement, in case the countries have difficulty paying their debts. The latest example in this regard was the Balkan country Montenegro. Montenegro, which started the construction of the highway with a loan from China in 2014, could not pay the first installment of the debt in July. If Montenegro cannot pay its debt, it will have to give land to China, provided that it is not used for military activities, according to the agreement.
THE EUROPEAN UNION TURNED ITS BACK TO MONTENEGRO
Montenegro, one of the smallest countries in Europe, with a population of 600,000, borrowed one billion dollars (8 billion TL) from China-based Eximbank in 2014 for a highway project in the country. Montenegro, which had difficulties in paying this amount, which placed a great burden on the state budget, could not receive a response even though it asked for financial support from the European Union (EU). Montenegro, which has a very bad economy, will have to give land to China if it cannot pay the debt amount due in July. A similar situation was experienced in Sri Lanka in 2017. Sri Lanka, one of the Asian countries, had to lease the control of the port to China for 99 years because it could not pay its debt to China for the construction of a port.
CHINA HAS THE RIGHT TO CLAIM LAND FROM MONTENEGRO IN RETURN OF THE DEBT
Evaluating the troubled situation of Montenegro, known as the smallest country in the Balkan geography, against China, Chinese researcher-academic Nurettin Akçay said, "China is building a 270-mile road in Montenegro. The State Bank of China gave a $1 billion loan to Montenegro for the construction of the road under the Belt and Road Initiative. Montenegro could not pay this money to China, while the loan should have been paid this month. So what are the sanctions? According to the loan agreement, if Montenegro misses the payment deadline, China has the right to buy land in the country in return for the loan. The only condition is that the land should not be used for military purposes."
CHINA'S AIM IS TO BALANCE THE US AND THE WESTERN BLOCK
The Chinese government is trying to balance the activities of the United States of America (USA) and Western bloc countries with which it competes on a global scale by influencing many countries in Asia, Africa and finally Europe with debt diplomacy. Having succeeded in attracting Pakistan, one of the important allies of the USA in Asia, in recent years, China has also managed to influence some countries such as Nigeria, which has a say in African politics, thanks to the loans it has given. With its giant investment agreements, China, which has also clamped down on the leading countries of the Islamic world such as Turkey, Iran and Saudi Arabia, has succeeded in breaking the US's influence in the Middle East region to a large extent. It is also known that port constructions in the Aegean Region continue within the scope of China's "One Belt One Road Project". However, the Turkish government had recently taken out a $400 million loan from the Chinese state-owned Eximbank on behalf of a public bank.
THE TURKISH ECONOMY IS GROWING WITH DEBT!
Like many developing countries, Turkey, as it does not have sufficient domestic savings and financing opportunities, applies the growth model through external borrowing and loans. While applying this model, the political power in Turkey, which gradually entered the spiral of "growth with money" and "paying debt with debt", found the necessary source for growth in asset sales and privatizations when borrowing opportunities were limited. Treasury-guaranteed construction projects also increase the burden on the budget.
CHINA DISTRAINED THE PORT IN SRI LANKA
The latest example in this regard was the Balkan country Montenegro. Montenegro, which started the construction of the highway with a loan from China in 2014, could not pay the first installment of the 1 billion dollar debt in July. If Montenegro cannot pay its debt, it will have to give land to China, provided that it is not used for military activities, according to the agreement. A similar situation was experienced in Sri Lanka in 2017. Sri Lanka, one of the Asian countries, had to lease control of the port to China for 99 years because it could not pay its debt to China for the construction of a port.