Heard on the Street: Is Beijing strong-arming borrowers with “debt-trap diplomacy”?
Beijing isn’t creating vassal states through predatory lending. But it is winning friends and influencing people—and allowing other problems to build up.
The gargantuan international infrastructure-lending program is known both as “One Belt, One Road” and, more simply, “Belt and Road.” By one estimate, from mining giant BHP, the total outlay on related projects could hit $1.3 trillion in the decade to 2023—in inflation-adjusted terms, a sum more than seven times as large as the U.S. Marshall Plan after World War II. Other...
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