China’s foreign policy model seems focused on making deals with the existing power no matter what. Part of that seems to be that China does not believe in odious debt like a lot of Western countries do. When settling debts, Chinese institutions have been far more insistent on keeping write-offs from occuring.
China has also generally pushed for more one on one transactional deals with countries. There have been some international institutions made like the AIIB, but I don’t see the institutional creation of systems like the USA tried to do.
A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.
China’s foreign policy model seems focused on making deals with the existing power no matter what. Part of that seems to be that China does not believe in odious debt like a lot of Western countries do. When settling debts, Chinese institutions have been far more insistent on keeping write-offs from occuring.
China has also generally pushed for more one on one transactional deals with countries. There have been some international institutions made like the AIIB, but I don’t see the institutional creation of systems like the USA tried to do.
What do you mean by keeping write-offs from occurring?
A lot of times, the IMF will lead all creditors of a country to restructure, reduce, or reschedule existing debt. What is happening is that Chinese institutions appears to be less willing to write down bad debt, holding up a lot of negotiations between debt holders. So, the debt doesn’t get reduced.
Is this a bad thing somehow? I would think reducing debts is generally beneficial, especially in times of economic crisis.