China Starting Next Global Crisis By Gobbling Up Sri Lanka
by Gordon G. Chang • May 20, 2022 at 9:00 am
Sri Lanka is only the world's opening act.
Events in Sri Lanka also highlight how China is going about dominating the world. Beijing is corrupting national leaders, drowning them in debt, and ultimately destabilizing their governments. Beijing, it appears, is particularly targeting democracies.
China is the world's predatory lender, something evident from its Belt and Road Initiative, also known as BRI. Beijing's grand infrastructure project specializes in roads, ports, and railroads that have, like the Sri Lankan projects, little or no commercial justification. So far, 146 countries have signed BRI memo agreements with Beijing.
The Chinese have established a pattern. "China extends debt on onerous terms, backs up authoritarian governments when there are financial collapses or civil disobedience, and then takes everything it can find," Cleo Paskal of the Foundation for Defense of Democracies told Gatestone.
In December 2017, Beijing took control of the Hambantota port.... Now there are concerns that Hambantota will eventually become a Chinese naval base. China's admirals have long eyed Sri Lanka...
A base in Sri Lanka would allow Chinese aircraft and surface combatants as well as submarines to cut sea lanes in the Indian Ocean and force next-door India to divert military assets to a threatening presence.
Sri Lanka is now looking for a bailout from the International Monetary Fund, but that is not necessarily a good idea. The international community should not be helping a voracious China gobble up small, vulnerable societies.
If the IMF bails out Sri Lanka without ensuring that it is no longer aligned with Beijing, it will have subsidized Chinese investment and politically reinforced a country that becomes a Chinese proxy." – Cleo Paskal, Foundation for the Defense of Democracies, to Gatestone, May, 2022.
On May 12, India confirmed that it would provide a desperate Sri Lankan government 65,000 metric tons of urea, pursuant to an existing $1 billion credit line. The sale, which overrides New Delhi's ban on the exports of the commodity, relieves severe pressure on the government of Sri Lankan President Gotabaya Rajapaksa.
Sri Lanka since the end of March has been wracked by violent protests. "Shoot-on-sight" orders have for the most part restored order, but the unrest has led to the replacement of Prime Minister Mahinda Rajapaksa, once the country's dominate political figure. His brother, the president, is unlikely to survive the tumult. The ongoing economic and financial crisis is Sri Lanka's worst since independence from Britain in 1948.
