US Exposes How China Is Blackmailing Kenya In Loan Funding
According to a United States government report, China is using its economic power in African nations as a means to pursue global dominance.
According to the 2023 report submitted to the US Congress by the US-China Economic and Review Commission, most African nations, such as Kenya, are susceptible to China’s requirements due to the difficulties they face in repaying their debts.
Kenya has been asked to comply with requests that involve sending 45 individuals from Taiwan back to their home country to confront allegations related to a telecommunications fraud that implicates Chinese nationals.
“In one high-profile case, Kenya, one of the highest recipients of BRI investment in Africa, agreed to extradite to mainland China 45 Taiwan citizens implicated in a telecom equipment scam that targeted Chinese nationals, despite protests from Taiwan.”
The United States observed that after the deportation, Kenya acquired a loan of Ksh768 billion from China to construct a railway connecting the Mombasa port to Naivasha.
“Kenya continues to deepen its economic relations with China. The year following the deportations, Kenya opened a major railway from the port of Mombasa to the city of Naivasha, financed by a Ksh768 billion ($5 billion) loan from a Chinese bank, and as of 2022, China serves as Kenya’s largest external creditor, at 22 percent of its external debt,” read part of the report.
“Amid Kenya’s deepening reliance on Chinese financing, in 2023 Kenya’s Cabinet endorsed a formal extradition treaty with China that appears to encompass Taiwan citizens, as well, if ratified by the National Assembly.”
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The aim, according to the report, is to expand the One-China policy.
The One-China policy, upheld by the Chinese Communist Party (CCP), asserts the idea of a singular sovereign state known as China, encompassing Taiwan as an integral part of the nation.
The administration led by President Joe Biden has alleged that China is utilizing initiatives like the Belt and Road Initiative (BRI) to accomplish its policy goals.
Started in 2013, the BRI initiative seeks to enhance China’s global connectivity by transforming Africa’s infrastructure. Presently, more than 155 nations have enrolled in the project, representing over 75 percent of the world’s population.
The United States claims that China has been unyielding in responding to requests from various other nations worldwide concerning their continuous provision of loans to African countries.
“After a decade of predatory lending through the Belt and Road Initiative (BRI), nearly 60 percent of China’s loan holders were in financial distress in 2022, up from just 5 percent in 2010. Beijing has resisted global appeals to address these debt challenges, instead seeking to leverage these troubles and international events to expand the use and reach of the Chinese currency.”
US Exposes How China Is Blackmailing Kenya In Loan Funding
