(LibertySociety.com) – Over the years, Republicans have talked about how much of the US debt China owns. That’s one of the reasons the party is against increasing the ever-growing total. As of April 1, the national debt was more than $28 trillion. In 2020, The Balance reported China holds more than $1 trillion of that amount. But it seems the Communist government isn’t just involved in America’s financial matters.
Chinese Secret Debt Contracts
A recent report about data compiled by AirData shed new light on deals China has with developing nations. The College of William & Mary research lab compiled information over a period of 3 years that included 100 loan contracts China had with 24 low- and middle-income nations. What they found was shocking.
The Chinese government’s loan terms are very secretive, and it expects the countries to prioritize their loan above all others. Anna Gelpern, one of the authors of the data report, explained that they could not find “basic facts about the terms and conditions” of the country’s loans even though it’s the “world’s largest official creditor.”
Scott Morris, a researcher for the Center for Global Development, told Fox News that the fact the deals are so secretive is a “big deal” because the citizens of those nations have a “right to understand” their financial commitments to China.
China’s Expanding Influence
The report comes while there is an increased concern about China’s expanding diplomatic influence across the world. Another recent report by the Council of Foreign Relations detailed how the country uses its massive infrastructure plan, the Belt and Road Initiative, to reach all corners of the globe.
That study warned that if the US does not begin taking action to compete with China globally, America will be at a grave disadvantage. The question now is whether President Joe Biden is prepared to handle this problem, especially when he has been accused of being soft on China in the past.
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