Venezuela O&G assets next target? China prepares to seize Kenya's port of Mombasa

China's predatory lending to corrupt African countries may bear dividends soon.

With all of the predatory loans that China has made to Venezuela's government, it seems logical to me that China may spring the debt trap on Venezuela and start siezing Venezuela's oil & gas assets.  Venezuela cannot possibly repay its loans to China (or Russia).  And China knows it.

China's African debt-trap: Beijing prepares to seize Kenya's port of Mombasa

Nairobi fails to repay massive debts on shady loan for underperforming railway, Kenyan infrastructure ripe for the taking: reports

China may be preparing to seize some major assets in the African nation of Kenya, as a result of debt-trap diplomacy.

African media reports that Kenya may soon be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control.

Other assets related to the inland shipment of goods from the port, including the Inland Container Depot in Nairobi, and the Standard Gauge Railway (SGR), may also be compromised in the event of a Chinese port takeover.

Kenya has reportedly taken extremely large loans from the Communist government for the development of some major highways, and especially for the SGR, which forms a crucial transport link to and from Nairobi for the import and export of goods through Mombasa.

In November, Moody’s noted that Kenya is at high risk of losing strategic assets because of debts owed to Beijing. ...

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This article is implying that China is the bad guy here. The bad guy is the Kenyan government.

However, the Kenyan debt is only 60% of the GDP. This can easily be reversed through a reduction of government spending.

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1 hour ago, JunoTen said:

This article is implying that China is the bad guy here. The bad guy is the Kenyan government.

However, the Kenyan debt is only 60% of the GDP. This can easily be reversed through a reduction of government spending.

Current Western policy is to blame the non African country, similar to bribing African officials to win contracts, Western countries now prosecute the Western company. All it means is that those countries happy to deal with corrupt governments will gain a lot of influence. The article quoted is a prime example. Who is right I don't know the West still controls parts of Africa via trade. From a Kenyan point of view their government needs to wake up but then that would depend on how much of the Chinese loans their politicians are pocketing. I have no knowledge of Kenyan levels of corruption but at 145 out of 176 in the world corruption league I suspect China will be taking more control in the future and Kenya will not pay down its debts. On a personal note China seems to have a more aggressive form of exploitation than the West I would say in that they like to take over the country rather than trade with it on unfair terms.

https://en.wikipedia.org/wiki/Corruption_Perceptions_Index

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China will need to build an airforce carrier fleet , like the USA has :  13 naval sqadrons of cruisers , submarines , helicopter carriers , refurbishment ships .

 

Countries borrowing from China might  be safe for the next decade .

 

Venezuela owns loans to Russia , too , and Russia recently had sent 2+2 nuclear long-distance air-force bombers to Venezuela , and therefore would likely push their interests against China and the USA .

 

It might be wise , to loan from nuclear deterrence countries in a weighted way .

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The USA has the old Monroe Doctrine that it used in the past to keep the Russians, etc, out of what the USA considers its "back yard".

What is happening in Kenya is an example of what the "Road" loans from China can result in.

Recently,  Venezuela was involved in such China "Road" loans,  and Trump responded by mentioning that the USA will not stand for such "repossessions" in the Americas.

Trump hinted that China can loan all it wants,  but don't expect to be able to collect on it if it goes into default.

We will see what happens when Venezuela doesn't pay.

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Hopefully more countries will take note when China comes calling to build infrastructure and upgrade ports, etc.  When the Chinese come with great promises, undeveloped and most corrupt countries get into the Chinese debt trap plan,  They are promised jobs, but forget to mention they are for the Chinese who have now taken over your resources, your government and your freedom.  It is part of the China 2025 plan.  Now, though, that big plan might just be perhaps the China 2080 plan if their economy continues to falter.  A bank won't lend to someone who they know can't pay them back (2008 aside) or certainly a country to try and  take over its loan recipients assets when it can't pay its own debt.  With the Chinese economy on a downward spiral they are going to turn to the IMF to pressure the countries to get loans to pay back China, but poor China won't get the money since the U.S. won't be playing. The U.S. has enough votes at the IMF to veto loans to Pakistan, for example.  Pakistan has already defaulted to China and many countries are sure to come.  President Xi might be in office until he dies, but if his economy keeps sliding, we may not hear from him again.  

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"With all of the predatory loans that China has made to Venezuela's government, it seems logical to me that China may spring the debt trap on Venezuela and start siezing Venezuela's oil & gas assets”

Why do so many ppl blame China to use their loan "trap" to sieze other countries' assets ? I am living and working in Venezuela, everyone in the world knows the extremely bad economic situation in this country, well the western countries followed the sanction with USA and refused to lend any cent, if Venezuela does not borrow from China or Russia, what they can do with the current condition, they're forced to do it because the westerns made them to do. If the westerns do not like Venezuela goverment, they could try their own way to interfere as they used to do before. Like Iraq, people are living better than before? I don't think so.

 

Back to the topic, based on the financial condition of Venezuela, they're spending the future money in the form of loans, it's better than do nothing and wait and die, at least they could have something to change and try to produce more oil and repay the debt, until they could pay all of them and recover their economy finally.

 

Speaking of siezing the Oil & Gas Assets, who is the biggest one, that's United State of America, who started the wars in middle east, for what, nobody shouldn't be awared of that it's for the oil and gas.

 

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3 hours ago, JacquesLiu said:

"With all of the predatory loans that China has made to Venezuela's government, it seems logical to me that China may spring the debt trap on Venezuela and start siezing Venezuela's oil & gas assets”

Why do so many ppl blame China to use their loan "trap" to sieze other countries' assets ? I am living and working in Venezuela, everyone in the world knows the extremely bad economic situation in this country, well the western countries followed the sanction with USA and refused to lend any cent, if Venezuela does not borrow from China or Russia, what they can do with the current condition, they're forced to do it because the westerns made them to do. If the westerns do not like Venezuela goverment, they could try their own way to interfere as they used to do before. Like Iraq, people are living better than before? I don't think so.

 

Back to the topic, based on the financial condition of Venezuela, they're spending the future money in the form of loans, it's better than do nothing and wait and die, at least they could have something to change and try to produce more oil and repay the debt, until they could pay all of them and recover their economy finally.

 

Speaking of siezing the Oil & Gas Assets, who is the biggest one, that's United State of America, who started the wars in middle east, for what, nobody shouldn't be awared of that it's for the oil and gas.

 

You don't seem to realize that Chavez and Maduro stole your future and the future of your country. Not content with stealing all the money currently available in the country they then went and borrowed heavily, instead of using that money for investing in the country they stole half of it and spent the rest on some giveaways for the common people to keep them voting for their Socialist dream. 

The war in Iraq might have been about oil, but we didn't go in their and seize the assets, we gave them back to the Iraqis. 

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On 12/29/2018 at 2:32 AM, JunoTen said:

This article is implying that China is the bad guy here. The bad guy is the Kenyan government.

However, the Kenyan debt is only 60% of the GDP. This can easily be reversed through a reduction of government spending.

The Kenyan government might have been the bad guy, but I'm sure there were millions in bribes and shady deals to get the Government to sell the country down the river.

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