Borysfen Intel

China Spends a Lot of Money in South Asia and Creates Dependencies

June 29, 2018
<p>China Spends a Lot of Money in South Asia and Creates Dependencies</p>

Serhiy Polyovyk

China's strategy of strengthening its influence through investments and loans is observed in many countries located along the shipping trade route towards the West. Such funding is extremely important in South Asia, especially when it comes to the possibility of blocking contacts with India of neighboring states, making them dependent on China.

In future, China can count on the greatest benefit from international cooperation with the countries of the region, first of all economic one. Since a significant number of construction projects are not just funded by China, but are also implemented by Chinese construction firms, the added value remains in the country. Besides, many contracts are made in such a way that Beijing will receive most of the profits in the future.

It is advisable to take into consideration the peculiarities of doing business with China in order to determine Ukraine's possible participation in the PRC's regional projects. It is also necessary to take into account the negative experience of the countries-China's debtors while negotiating on the implementation of Chinese projects in Ukraine.

The article is available in Ukrainian

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