China's South Asia influence dwindling as cross-border protests erupt

China: As neighbouring countries such as Sri Lanka, Bangladesh, Nepal, and the Maldives have launched anti-China protests, China's ambitious policy of exerting its influence in the South China Sea appears to be blurring.

Notably, these countries are angry because of the debt trap created by massive loans from China, as well as their interference and presence in their country.

According to The Singapore Post, the ongoing economic crisis in Sri Lanka, which resulted in the Chinese occupation of Hambantota port due to non-payment of loans, has exacerbated the situation.

Sri Lanka granted the Chinese a 99-year lease on the Hambantota port, but is now facing the burden of repaying the debt, which has been exacerbated by China's Belt and Road Initiative.

Sri Lanka is currently blaming China for its economic woes. Previously, several politicians led anti-China protests after China refused to restructure their loans, according to Nectar Gan, an author for The Singapore Post.

However, China's loans were met with opposition in Sri Lanka as early as 2017. Buddhist monks warned the Sri Lankan government that if it accepted the BRI, it would become a Chinese colony, but the government ignored their warning.

According to The Singapore Post, financial experts in Bangladesh have criticised Chinese loans for being expensive and lacking grant options, in contrast to loans provided by the World Bank (WB), Asian Development Bank (ADB), or Japan International Cooperation Agency (JICA).

In Bangladesh, the second-highest recipient of Chinese loans, Ahsan H Mansur, executive director of Dhaka-based think tank Policy Research Institute (PRI), emphasised the Chinese contractors' deception. He claims that they show lower costs when accepting contracts but significantly increase them later.

According to The Singapore Post, this adds to the debt principal and interest, increasing the loan burden.

Bangladesh has now defaulted on approximately USD 12.38 billion in loans. According to the Singapore Post, Bangladesh's Finance Minister Mustafa Kamal warned Bangladesh to think twice before taking Chinese loans.

Similar protests are taking place in Bangladesh against China for its treatment of ethnic minority Uyghur Muslims in Xinjiang, China.

Maldives, where the political landscape is divided between pro-India and pro-China factions, also demonstrated in support of Uyghur Muslims.

Gan reported that now that a pro-India government is in power in the Maldives, China's interference in the country has been limited, and an India First policy has been implemented. Both of these investments, worth approximately USD 12.38 billion in Bangladesh and USD 1.5 billion in the Maldives, are causing China concern because both of these countries are strategically important.

The Maldives is particularly troubled because it is unable to generate enough revenue to repay its massive loan to China with its USD 4.9 billion GDP (GDP).

According to The Singapore Post, all of this is an opportunity for India to reclaim influence with the Maldives by assisting the country with its debt, resulting in the recapture of support that it had lost to China.

Nepal, which signed up for the BRI in 2017, has now withdrawn due to concerns about a possible debt trap. This comes at a time when China is already being accused of encroaching on its territory. As a result, exports were halted and the border was closed for months. South Asian countries are now closely monitoring China's dubious economic activity in the region and attempting to free themselves from the debt trap. (ANI)