Nepal Falls to China’s Debt Trap Diplomacy

The construction of Nepal’s airport in Pokhara will burden the nation with crushing debt to Chinese creditors for years to come, the New York Times reported October 16. The expensive airport was “a diplomatic victory” for China and “an economic albatross” for Nepal, the report said.

The New York Times’ investigation found that China camc Engineering Ltd, the main contractor building the airport, “repeatedly dictated business terms to maximize profits and protect its interests, while dismantling Nepali oversight of its work.” This left Nepal with an overly expensive airport without the necessary passengers to repay Chinese creditors.

Red flags: Murari Gautam was among the engineers who helped Nepal’s government assess progress after construction started in 2017. Gautam said camc Engineering’s work did not meet international standards.

• The firm did not test soil density for the airport’s 8,200-foot runway.
• The company failed to take historical rainfall data and sloping topography of Pokhara into account, which puts the airport at risk of flooding.
• camc Engineering repeatedly cut such corners in order to maximize profits.

There was “no oversight at all” from Nepal, Gautam said, which allowed the Chinese contractor to double the market rate.

Belt and Road: After the airport’s construction, Beijing said it had been part of the Belt and Road Initiative. bri is Chinese General Secretary Xi Jinping’s plan to make the world more economically dependent on China by building trillions of dollars’ worth of infrastructure.

When Pokhara airport opened on January 1, the Chinese Embassy declared it “the flagship project” of China and Nepal’s bri cooperation. Nepal, however, is now struggling to generate enough income to pay off its loans.

Times of the Gentiles: Beijing has used its Belt and Road Initiative before to ensnare Asian countries in its debt traps. This trend is vital to watch because the Bible tells us about an age called “the times of the Gentiles” (Luke 21:24). Expect China, as one of the most powerful Gentile nations, to continue using the bri and other initiatives to expand its power in Asia and beyond.

Learn more: Read “Brave New World (Made in China).”