Is China’s Investment A Debt Trap? -A Comparative Research Based on the Investment in the United States, Europe and China
- DOI
- 10.2991/assehr.k.211209.424How to use a DOI?
- Keywords
- US; Europe; China; Investment; Developing Countries; Debt Trap
- Abstract
The essay is to prove that Chinese investments in developing countries are not a debt trap by comparing US, European and Chinese investments. This phenomenon has been observed in recent years and it was usually questioning China’s motive of foreign investments from the perspectives of Western countries. The essay uses case study method. Through the case study of the US, European and Chinese foreign investments, the essay hopes to have broader lessons of knowing that there was no debt trap in Chinese foreign investments. The result of the essay reveals that the debt trap does not exist in Chinese investments in developing countries due to the lack of relevant evidence and Western countries’ misunderstanding, even though US and European investments are different from China. In conclusion, the essay deepens our understanding of Chinese foreign investments, and to some extent, it will reveal that Western countries have stereotype towards Chinese investments in terms of the debt trap. Moreover, the essay can be useful to understand how to correctly view Chinese foreign investment approach, and explain that to a certain extent, Chinese investments have helped local economic development and objectively point out that there is still some room for upward mobility of Chinese investment approach in the region. Admittedly, the essay is limited in the way that in the international environment, state-to-state investments do not necessarily seek economic returns, but may also demand political returns. For example, US aid to Israel is fundamentally about preserving its political and economic interests in the Middle East. Further studies can look into the US, Europe and China’s strategies towards developing countries and their roles in the investments.
- Copyright
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Yichen Hao PY - 2021 DA - 2021/12/15 TI - Is China’s Investment A Debt Trap? -A Comparative Research Based on the Investment in the United States, Europe and China BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2604 EP - 2610 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.424 DO - 10.2991/assehr.k.211209.424 ID - Hao2021 ER -