Global Affairs: Dragon’s Next Move

July 11, 2022, 10:55 am EDT

Dragon’s Next Move

This article is to continue our last article about Sri Lanka’s bankruptcy. One of the reasons that caused Sri Lanka’s collapse was related to the belt-and-road debt problem with China. 

China’s One Belt One Road, now known as the Belt and Road Initiative eventually took over Sri Lanka through debt amount more than billions with various infrastructure projects like ports, rail, and roads. Many projects like Lotus tower and Mattala airport are actually useless projects. These projects benefited the officers from both sides but damaged Sir Lanka’s people. Furthermore, Sri Lanka lost its Hambantota Port on a 99-year lease by China Merchant Port Holding due to its inability to pay back the debt. 

Even though China seemed to be a winner, the red dragon is also being dragged into its own problem of mounting debts and economic slowdown. We should see China appears on headlight news more often in the future like housing collapse and banking problems. 

China’s weakness in economic power may result in a military confrontation in the nearby regions like Japan, Taiwan, and the South China sea. The departure of Japan’s ex-prime minister Shinzo Abe, who insisted on the need to defend China, could bring the emergent need for Japan to enhance its defense power as well. 

In our opinion, China’s next move could mean a downtrend for its stock market and an uptrend for its military power. 

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