China economy – Bizchina Update http://bizchina-update.com/ Wed, 20 Apr 2022 14:45:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bizchina-update.com/wp-content/uploads/2021/10/icon-120x120.jpg China economy – Bizchina Update http://bizchina-update.com/ 32 32 China using payday loan diplomacy in the Pacific: U.S. diplomat https://bizchina-update.com/china-using-payday-loan-diplomacy-in-the-pacific-u-s-diplomat/ Thu, 14 Apr 2022 07:55:08 +0000 https://bizchina-update.com/?p=1269 China is using a payday loan diplomacy to exert influence in the Pacific, the new U.S. ambassador to Australia said on Wednesday, comments that threaten to inflame regional tensions. The United States and its regional allies have been battling China for greater influence in the Pacific – a region that has voted at international forums […]]]>

China is using a payday loan diplomacy to exert influence in the Pacific, the new U.S. ambassador to Australia said on Wednesday, comments that threaten to inflame regional tensions. The United States and its regional allies have been battling China for greater influence in the Pacific – a region that has voted at international forums like the United Nations and controls vast swathes of a resource-rich ocean. Same days cash loans in california.

How Important is China’s payday loan diplomacy to the Pacific?

The geopolitical competition has seen both sides increase foreign aid to the region in recent months. The West believes that this is needed to prevent the Pacific from falling into financial distress and becoming susceptible to diplomatic pressure from Beijing.

Late last year, USA Vice President Mike Pence accused China of ensnaring tiny island nations in foreign aid “debt traps.” New U.S. Ambassador to Australia Arthur Culvahouse said Pence’s criticism was not strong enough.

“I would use stronger language – I would use payday loan diplomacy,” Culvahouse told reporters in Canberra after presenting his diplomatic credentials to Australia’s Governor-General.

“The money looks attractive and easy loan upfront, but you better read the fine print,” he said.

Strengthening good relations

Speaking in Beijing, Chinese Foreign Ministry spokesman Lu Kang said China’s cooperation with Pacific island countries was good for both parties and broadly welcomed these countries.

Some U.S. officials have not been pleased to see such cooperation, and China hopes the United States can do more to benefit these countries’ development and not “keep making trouble out of nothing”, he added. China’s Ambassador to Australia last year said Beijing does not place undue debt on the region.

The Pacific Lending is also a venue for diplomatic competition between China and self-ruled Taiwan, claimed by Beijing as sacred Chinese territory. Taiwan’s president will visit three of its diplomatic allies in the Pacific next week.

The arrival of Culvahouse, the first U.S. ambassador to Australia in more than two years, comes at a time of bilateral tensions between Canberra and Beijing.

In 2017, then Australian prime minister Malcolm Turnbull accused China of meddling in domestic affairs. In 2018 Canberra banned foreign-government-linked companies from investing in a nascent 5G network, effectively blocking China’s Huawei Technologies.

China denied the allegations and has called on Australia to shed its “Cold War” mentality. Analysts believe Beijing may now be using trade to punish Canberra for its criticism.

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