Is Debt China’s Achilles Heel?
China’s credits to various countries along its much-discussed Belt and Road Initiative (BRI), the most ambitious infrastructure undertaking in history, have recently been criticized for drawing poor countries into a debt trap by extending huge credits. Myanmar is often cited, as well as Sri Lanka. Malaysia and Pakistan are renegotiating multi-billion-dollar projects of previous regimes. What is not widely being examined however, is whether there is a danger that the China economy itself is vulnerable to a far larger debt trap, one that could spell trouble for the BRI project itself as well as for the unprecedented four decades of booming China economic growth. Could it be that debt is becoming China’s Achilles Heel? .