T&T HEADING INTO CHINESE DEBT TRAP

AT a time when another country has fallen victim to the Chinese debt trap, Trinidad and Tobago is set to accept further loans from the Asian giant.

The attendance of China’s Assistant Foreign Minister Hua Chunying at the just-ended Caricom Conference was almost a case of Greeks bearing gifts.

Ms. Chunying told of Chinese’s extensive loans to T&T for various projects, in the midst of speculation of further credit, for major road and port projects.

The minister said her country would continue to assist Caribbean economies.

There are reports that construction of the $2 billion Toco deepwater harbour would be financed through China’s Belt and Road Initiative.

T&T is already indebted to China for the value of some US 8 billion.

Finance Minister Colm Imbert has been borrowing from the Chinese authorities to finance budget deficits.

Imbert said in 2021, when he borrowed US $204 million, that it was a “no-brainer” to take the Chinese loan, because of the two per cent interest rate.

The terms of the loan included the use of “Chinese elements,” such as workers, equipment, and medical supplies.

China, which has constructed major projects in Jamaica, Antigua, and other Caricom countries, is also seeking closer ties with T&T in education, trade, and other fields.

Diplomatic sources say this is part of the country’s strategic decision to develop economic and military influence in the Caribbean and Latin America, for long-term gain.

The ongoing Chinese initiative is taking place while a power plant built with the country’s finances in Jordan is becoming a white elephant.

The plant in Attarat is no longer needed for its energy because of other modern projects that were recently launched.

Jordan has been put into “billions of dollars in debt,” according to reports.

An international scholar has been quoted by Associated Press as saying: “Attarat is a representation of what the Belt and Road Initiative has become.”
He stated that the project is “an interesting case study” of “how China engages in middle-income countries.”

China and the US are involved in a high-stakes geo-political square-off in this part of the world.

In an effort to assert itself, the US has lately been providing various forms of assistance to Caricom.

Secretary of State found time in his busy schedule to attend the Caricom talks and to offer various forms of assistance.

But there are growing concerns that China’s loans come with stringent terms that could lead Caricom countries to fall into the debt trap, like Sri Lanka, Pakistan, Kenya, Zambia, Laos, Mongolia, and other nations.