CHINA is using its massive financial assets to dominate smaller economies through long-term control of infrastructures, natural resources and associated land assets by offering less-than-desirable credit terms for infrastructural loans.
Funding for the initiative is through China’s policy banks.
Another source for funding is the Beijing-based multilateral development bank Asian Infrastructure Investment Bank.
The AIIB was created precisely to service projects under the Belt and Road Initiative, which PNG was the first in our region to sign up to. China wants to become the superpower.
One such policy, which is related to the Belt and Roadt Initiative, is debt-trap diplomacy.
China invest in our country to develop ports, airports, roads and other infrastructures and gives loan at lower rates. In return you have to do business with the Chinese company that is involved in the projects. China is supporting infrastructural projects in our country through aids and loans to the government.
SJK Ganio , KumoGere