• HobbitFoot @thelemmy.club
    link
    fedilink
    English
    arrow-up
    10
    ·
    2 months ago

    China’s foreign policy model seems focused on making deals with the existing power no matter what. Part of that seems to be that China does not believe in odious debt like a lot of Western countries do. When settling debts, Chinese institutions have been far more insistent on keeping write-offs from occuring.

    China has also generally pushed for more one on one transactional deals with countries. There have been some international institutions made like the AIIB, but I don’t see the institutional creation of systems like the USA tried to do.

      • HobbitFoot @thelemmy.club
        link
        fedilink
        English
        arrow-up
        5
        ·
        2 months ago

        A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.

        • LibertyLizard@slrpnk.net
          link
          fedilink
          arrow-up
          2
          arrow-down
          1
          ·
          2 months ago

          Is this a bad thing somehow? I would think reducing debts is generally beneficial, especially in times of economic crisis.