Debt or Diplomacy? Inside China’s Controversial Loans to Sri Lanka, Laos, and Malaysia

Abstract

This article dives into the nuanced debate surrounding China’s "debt-trap diplomacy," exploring whether China is truly manipulating economically vulnerable nations or if the narrative has been exaggerated by Western critics. Through detailed case studies of Sri Lanka, Laos, and Malaysia, the article examines how China’s Belt and Road Initiative (BRI) impacts these nations’ strategic infrastructure and sovereignty. While some cases appear to validate the idea of Chinese predation, the article argues that the reality is far more complex—often shaped by local governance, corruption, and political self-interest rather than solely by China’s actions.The piece provides an in-depth look at the most-cited examples of debt diplomacy, such as Sri Lanka's Hambantota port, Laos' energy sector, and Malaysia's East Coast Rail Link (ECRL). It highlights China's aggressive lending practices but also points out the complicity of local leaders who pursue these deals for political or personal gain. Ultimately, Rod challenges