Chinese Loans Disbursed to India’s Neighbours Being Used as ‘coercive leverage’ : US

 - Sakshi Post

The United States is deeply concerned that loans provided by China to Pakistan and Sri Lanka, which are neighbouring countries of India, may be utilised as means of exerting coercive pressure, a senior State Department official said. 

“Concerning Chinese loans to countries in India’s immediate neighbourhood, we are deeply concerned that loans may be used for coercive leverage,” Donald Lu, Assistant Secretary of State for South and Central Asia, told the media ahead of Secretary of State Antony Blinken’s India visit.

The top American diplomat is travelling to New Delhi on a three-day official visit from March 1 to 3.

Lu stated that the United States is encouraging nations within the region that includes India to make independent decisions and not feel obligated to any external allies. “We are talking to India, talking to countries of the region about how we help countries to make their own decisions and not decisions that might be compelled by any outside partner, including China,” Lu said.

Earlier, the Finance Minister of Pakistan, Ishaq Dar, declared that the China Development Bank (CDB) Board has granted a credit facility of USD 700 million to their country. The Pakistan economy is in dire straits amid depleting forex reserves and soaring inflation.

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