Connect with us

World

Alarm bells ringing, beware of China's debt trap

The signs are becoming more evident now. Here’s the reason why the world should be more concerned about China’s economic invasion

Indic Post

Published

on

Image: Pixabay

Djibouti has become a hot point of debate among foreign policy experts, for the very reason of their affinity towards China. It seems the East African country is the latest in the list to fall into the debt trap of Communist China.

Foreign Policy author Amy Cheng, in his latest piece, wrote Djibouti faces an unpleasant situation similar to that of Sri Lanka as the African nation borrowed more money from China than it can pay back.

“In both countries, the money went to infrastructure projects under the aegis of China’s Belt and Road Initiative,”Cheng reminded in his article.

He also pointed out that Sri Lanka was forced to hand over about 70 per cent stake of strategically important Hambantota port to China. So that’s the story. China is playing the same tactics in Djibouti. Giving billions of dollars than the developing nation can affort. The result would be disastrous, and grand enough for China to create their new generation colonies in future.

It is alarming that Djibouti is going to take huge debt, approximately 88 percent of their GDP. Djibouti has also developed an International Free Trade Zone of $3.5 billion with the help of China.

It needs to be noted that China has built its first overseas military base in Djibouti, a reason for the US to worry a lot.

Facebook Comments
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

From Madras to the top of food & beverage giant PepsiCo

As Indra Nooyi is stepping down as CEO of PepsiCo, the corporate world is losing one of its few high-profile female chief executives

Indic Post

Published

on

Image: Pepsico.com. Illustration: The Indic Post

Indra Nooyi, one of the most high-profile female chief executives in the US, is stepping down from her role as the head of food-and-beverage company PepsiCo.

Nooyi was the first foreign-born as well as the first woman chief executive of PepsiCo.

Nooyi, 62, will step down from the company on October 3rd, and stay on as chairman until 2019. India-born Nooyi is leaving her job at a time when the drinks maker is struggling to explore new growth potential from the old business model. But leave that for a while. The story of Indra Nooyi is an exceptional one for aspiring women business professionals across the world.

Nooyi joined PepsiCo in 1994 and became the chief financial officer of the firm in 2001

“Today is a day of mixed emotions for me. @PepsiCo has been my life for 24 years & part of my heart will always remain here. I’m proud of what we’ve done & excited for the future. I believe PepsiCo’s best days are yet to come,” Nooyi tweeted.

Born to a Tamil family in Chennai of India’s southern state Tamil Nadu, Nooyi has achieved great heights with her strong willpower and sheer enthusiasm to move on irrespective of adversities.

She has a bachelor’s degree from Madras Christian College and got management education training from IIM Calcutta. Also a master’s degree holder from the Yale School of Management, Nooyi served some of the big corporations at the beginning of her career, including the Boston Consulting Group, Motorola, and Asea Brown Boveri.

Nooyi joined PepsiCo in 1994 and became the chief financial officer of the firm in 2001. Recognizing her sharp management skills, she was named the president and chief executive of PepsiCo in 2006.

The strategist

Nooyi has a phenomenal stint at PepsiCo as the top executive of the firm. She has shaped the global agenda of the drinks giant, spearheading the diversification plans which resulted in the shifting of product portfolio into healthier and more nutritious brands.

She also made the crucial decision of Pepsico’s Tropicana acquisition, and led the merger with Quaker Oats. Nooyi has been widely projected as an inspiring role model for women entrepreneurs and young female business professionals.

“Growing up in India, I never imagined I’d have the opportunity to lead an extraordinary company like PepsiCo,”Nooyi’s emotional tweet tells the crux of the story. If you have the will and determination, you can achieve.

Facebook Comments
Continue Reading

Politics

Trump lashes out at China, EU; says they're manipulating currencies

Has the currency war arrived?

Indic Post

Published

on

Image: Pixabay

American president Donald Trump has lashed out at China and the European Union for currency manipulation, marking the beginning of a currency war.

The US President Donald Trump has intensified his words on China and the European Union, saying they are manipulating their currencies.

“China, the European Union and others have been manipulating their currencies and interest rates lower, while the US is raising rates while the dollars gets stronger and stronger with each passing day – taking away our big competitive edge. As usual, not a level playing field…,”Trump said on Twitter.

Trump also made it clear that the US should be allowed to recapture what was lost due to illegal currency manipulation and bad trade deals.

Trump reiterated his threat of imposing tariffs on all goods US imports from China, which is valued at $505 billion.

If a currency war erupts in full swing, it would put stock markets and oil at big risk, investors feel. Trump’s comments on currency manipulation made the dollar immediately fell against euro, yuan and yen.

Facebook Comments
Continue Reading

Opinion

Xi Jinping’s UAE visit is very much a part of China’s economic invasion

China is making smart moves to increase its influence in the Arab world, and the visit of Communist supremo Xi Jinping to the UAE matters a lot

Published

on

Image: en.kremlin.ru. Illustration by Jijin MK/The Indic Post

China has been making inroads in the UAE with a well-crafted plan that projects its controversial mega infrastructure plan, the Belt and Road Initiative (BRI), as a fillip to bolster the Arab state economically and culturally.  Indeed, the bilateral trade between China and the UAE has attained great momentum for the last few years.  The maiden visit of Chinese president Xi Jinping to the UAE is also a reflection of that.

Xi Jinping arrived in Abu Dhabi on Thursday, July 19, with a long term vision to strengthen the ties with the Gulf state at all possible levels. The UAE gave Xi a grand reception in style, bestowed with the Order of Zayed, UAE’s highest civil decoration, and assured all support to strengthen bilateral trade and investment.

“Xi Jinping’s visit to the UAE has marked a new stage in the strategic partnership,” said UAE vice president and prime minister Sheikh Mohammed bin Rashid Al Maktoum.

China’s Xi Jinping and Sheikh Mohammed bin Rashid/Dubai Media Office

Sheikh Mohammed, who is also the ruler of Dubai, appreciated Xi for selecting the UAE as the first destination of his foreign tour after his re-election as the president of the Communist state for another term.  Sheikh Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces, also echoed the same view of Sheikh Mohammed on China.

Xi has been striving hard to make BRI a reality, pouring in billions of dollars as investment to many countries, forcing the developing countries to get tangled up in the debt-trap. It seems his Mission UAE is also a part of that debt-trap diplomacy

According to him, the UAE-China relations are not just limited to political and trade sectors. It extends to culture, education and people-to-people links. So what’re the implications of this much celebrated visit of Xi Jinping to the UAE?

The Belt Road initiative

China is more aggressive under the leadership of Xi Jinping. And he has a bold yet dangerous mission to become the new superpower in the world, in both economic and political terms, as president Donald Trump has been engaged in taking the US out of all global contexts. Xi’s trump card is what we call the Belt and Road Initiative (BRI), the most powerful tool for China’s infrastructure invasion to other countries.

As BRI is now a part of the China’s constitution, Xi has been striving hard to make it a reality, pouring in billions of dollars as investment to many countries, forcing the developing countries to get tangled up in the debt-trap. It seems his Mission UAE is also a part of that debt-trap diplomacy.

The trade between China and the UAE has been on the rise, accounting 50 billion annually. As UAE has become an attractive destination for Chinese investors, it is expected to grow to 70 billion dollar by 2020. Chinese investors, with the full-bodied support of their government, are exploring all the possibilities to print their mark in the Arab state, which is also a prime source for China’s energy needs.

Look at the deals materialised just ahead of Xi’s visit, Abu Dhabi National Oil Company, a state-owned firm, had released contracts worth 1.6 billion dollar to BGP Inc, a subsidiary of China National Petroleum Company. The deal is aimed at a seismic survey in Abu Dhabi.

Sheikh Mohamed bin Zayed Al Nahyan, Xi Jinping and Sheikh Mohammed bin Rashid Al Maktoum/Dubai Media Office

DP World, leading UAE-based global port operator, signed a deal with Zhejiang China Commodities City Group to build a new trade zone in Dubai’s Jebel Ali free zone just ahead of Xi’s arrival.

The trade zone is widely projected as a boost to China’s Belt Road Initiative, helping China-based manufacturing companies trade across the West Asia and Indian Subcontinent.  Dubai-based Emaar group, headed by prominent businessman Mohamed Alabbar, Wednesday (July 18) announced plans to build the largest Chinatown in the Gulf region at the Dubai Creek Harbour.

This has to be seen in the backdrop of Xi Jinping’s recent pledge of financial aid to the Arab states. It was on July 10 Xi Jinping pledged $20 billion as loans to the Arab nations for their revival, plus a package of $106 million as financial aid.

Notably, the number of Chinese tourists visiting the UAE, especially Dubai, is increasing at a rapid pace for the last few years, making the Communist state the fourth largest visitor source market for Dubai.

Facebook Comments
Continue Reading

Trending