The covid-19 pandemic is taking a huge toll on the whole world. Economies, businesses and infrastructure have all shut down arising from the pandemic. The Chinese are swooping in to buy stakes. Most countries have become vulnerable and need to sell in order to keep the country moving. Recently the United Airlines got ready to sell 22 planes to the Bank of China Aviation. The North Atlantic Treaty Organization already warned against this. China has recently also been buying ports.
According to Forbes another area that may interest the Chinese in the US is the energy space, and Chinese companies have already taken over Africa, Eastern Europe and even Latin America. The global pandemic has become an opportunity for China to take over infrastructure and technology from the west. China has also been spree buying steel in Singapore. Since March, China has been a very active buyer of steel especially as most countries are struggling with the virus outbreak. According to surveys the construction activities in China has almost exceeded 85% as at the beginning of the month. China has stepped on the global finances of the world especially those of the world’s poorest countries.
Over the years China has given out loans to lesser developed countries like Nigeria. Nigeria currently can’t export crude oil and so its economy is depleting. In such case if faced with the option of paying back their debt to China such countries will be left with only two options: make their citizens even poorer by paying off the debt or forfeiting their assets.
According to reports at least 50 developing countries owe 15% of their GDPs individually to Chinese banks. Countries like Malaysia, Thailand, and India have extended their lockdown longer than expected which means production and construction will wait longer, thereby giving China the power to come in if they still have enough resources. In essence China’s continuous spree buying depends on how quickly other countries can contain the pandemic.
