"For U.S. policymakers, the bottom-line concern is not really about the fairness of China’s loans anyway but rather about the extent to which friendly states may fall into China’s orbit. If the United States wants to prevent that from happening, it should pay closer attention to the domestic structural and economic factors that drive these states to seek Chinese deals. The start of the Biden administration offers a good opportunity to do that.We are doomed.First, Washington can address the structural obstacles facing small states in the larger international economic system. In particular, it can use its influence in multilateral development banks to assist middle-income countries that have not sufficiently updated their economic practices. Next, the United States should acknowledge the agency of small states and not diminish them as relinquishing sovereignty when they conduct their own commercial infrastructure deals. In the case of Hambantota port, Sri Lanka’s leadership also sought U.S. financing, which was not forthcoming; U.S. investors were uninterested in the project.
As part of its renewed focus on climate change, the Biden administration might consider opportunities to provide development finance to turn Hambantota into a hub for fuel that complies with a January 2020 requirement from the International Maritime Organization (IMO) to curb sulfur content. In the past year, Sri Lanka has relaunched fuel service operations to capitalize on the need for ships to have IMO-compliant fuel.
Well, iif chinese loans are not paid off, what can China do about it?
At Present, China has pretty serious economic problems at home during the transition to full China Socialism. Loses in Siri Lanka are just trivial to the incredible losses at home