Most of China’s action in reducing world poverty is related to improving the economic conditions of its people, mainly through state capitalism and taking on enormous debt.
It is likely that China is presenting other countries with economic conditions that are near the conditions that the Chinese government will accept and the infrastructure has a higher probability of being built than other forms of economic aid. Major issues with Chinese deals is that the payment plan for a lot of these deals is on the order of a century and Chinese engineers don’t design for economics. So, Chinese infrastructure tends to be overbuilt and doesn’t always serve the economics of the region. After that, the countries with this infrastructure built have issues paying off the debt.
Most of China’s action in reducing world poverty is related to improving the economic conditions of its people, mainly through state capitalism and taking on enormous debt.
It is likely that China is presenting other countries with economic conditions that are near the conditions that the Chinese government will accept and the infrastructure has a higher probability of being built than other forms of economic aid. Major issues with Chinese deals is that the payment plan for a lot of these deals is on the order of a century and Chinese engineers don’t design for economics. So, Chinese infrastructure tends to be overbuilt and doesn’t always serve the economics of the region. After that, the countries with this infrastructure built have issues paying off the debt.