As far as I'm aware, China has been giving loans to various countries in Africa and building infrastructure in exchange for money and maybe some stuff like recognizing Taiwan as part of China. But why do people say China is imperialist for doing this? Is there truth to it or is it another strain of radlibs eating state department propaganda?

  • Dimmer06 [he/him,comrade/them]
    ·
    3 years ago

    I think the brutal austerity is key to understanding this. Chinese investment has never resulted in people losing their healthcare or government subsidies for their homes. It has never turned people into slaves in sweatshops. Western countries through the IMF constantly utilize austerity when restructuring loans and inflict massive punishment on regular people, clearly to extract the most wealth they can from a country. The Chinese would rather forgive an unpaid debt or restructure the terms of a loan without harming people. Whether it is out of the goodwill of the Chinese government or in pursuit of some sort of Machiavellian "soft power" is largely irrelevant to the people whose debts are being forgiven. Thus we see Chinese loans are viewed more favorably by the third world even if they're kind of the same thing as the West's.

    • came_apart_at_Kmart [he/him, comrade/them]
      ·
      3 years ago

      in Graeber's Debt book, he talks about the history of debt in relation to the Middle Kingdom and it's relations to other spheres of power and trading entities. Basically, the take home as I recall it, is that there is a long memory of understanding that it's much more optimal to buy up your trade partner's shitty debt (knowing you can't really collect in full), take a haircut on payments, or otherwise forgive loans than it is to destabilize trade relationships because desperate (politically unstable) neighbors are unpredictable. this was the basic sovereign debt policy between the middle kingdom / imperial court and other countries it did business with.

      when i read that, i remember realizing that China buying up lots of the US' foreign debt wasn't some power play as it was consistently reported in western media (because why else would someone buy up another's outstanding debt, but to fuck them)... rather it was china doing it's thing and keeping us at the table, because the overall trade relationship was working for them.

      like, if China ever just plain decides to be half the dick economically that our media insists they are, we would be dead in the water.

      • Skysthelimit [none/use name]
        ·
        3 years ago

        It's also because US debt is a really solid investment, and if your trading partner is getting rich through trade with you it makes sense to buy into their success.