Geopolitics
Debt-Trap Diplomacy
Definition
The allegation that a creditor country extends excessive loans to developing nations to gain strategic leverage when borrowers cannot repay.
Explanation
The term is primarily associated with Chinese Belt and Road Initiative lending. Critics point to Sri Lanka's Hambantota Port (leased to China for 99 years after default) and debt distress in several African countries. China disputes the characterization, arguing it fills financing gaps that Western institutions won't. The debate reflects broader US-China geopolitical competition.