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Experts dispel claims of China debt-trap diplomacy in Pacific but risks remain
Beijing should substantially reform its lending practices, Lowy Institute says
China has not engaged in deliberate “debt-trap diplomacy” in the Pacific, but the burgeoning scale of China’s lending, and institutional weakness within Pacific states, pose clear risks for small states being overwhelmed by debt, a new report argues.
And an infrastructure arms race between China and other countries with interests in the region – including Australia – might only exacerbate the problem.
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