Crisis-hit Sri Lanka asks China to restructure debt. Sri Lanka owes China over $5bn, amounting to about 10% of the nation's total foreign debt. Sri Lanka is an example of how big-ticket Chinese investments can go awfully wrong for a country. China's untenable debt-for-infra deals help Beijing further its geostrategic interests. China tends to lend at higher rates of interest than western governments. Borrowing nations, when unable to repay loans, are compelled to cede strategic assets to China.
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