KfW loans: German millions for China’s expansion policy

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China is pushing its expansion policy with German millions

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Loans for China: is Berlin making itself an aid to Beijing?

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China is expanding its global power with infrastructure projects in Africa and Asia – and in return receives loans from Germany. More than 500 million euros in tax money from the federal budget have been approved for this since 2013.

Dhe accusations weigh heavily: because the German government is promoting infrastructure projects by Chinese companies abroad, it is accused of making itself an aid to Beijing’s expansion policy. A response from the federal government to a small request from the FDP parliamentary group shows that the development bank Kreditanstalt für Wiederaufbau (KfW) has awarded 503 million euros to Chinese companies for infrastructure projects since 2013.

WELT AM SONNTAG has the answer. More than half, 283.2 million euros, went to infrastructure projects outside of China. Accordingly, KfW awarded 152.3 million euros to Chinese companies that carried out projects in Asia. Almost half of this, more than 70 million euros, went to projects in Bangladesh; an additional 130.9 million euros to Chinese companies that carried out projects in Africa.

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China has been pursuing ambitious global goals since 2013 as part of the “Belt and Road” initiative (BRI), also known as the New Silk Road. The country is establishing an infrastructure network that, according to its own information, connects more than 100 countries. According to the Chinese representation, this is intended to promote global trade. Critics see the initiative as part of an aggressive expansion policy aimed at expanding China’s power.

They point out that in most cases Chinese companies are commissioned with the projects. They also warn that Chinese lending can lead to over-indebtedness and political dependence, especially in small countries. Countries in Asia and Africa play a prominent role in China’s plans. The federal government writes that the projects carried out by KfW cannot be assigned to the “Belt and Road” initiative – but without providing evidence.

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“To claim that is simply implausible and hardly verifiable,” says Olaf in der Beek, member of the FDP and member of the Bundestag Committee for Economic Cooperation and Development: “Germany pays part of the Chinese Silk Road Initiative and finances China’s geopolitical striving for power in Asia and Africa with tax money from the federal budget. “

As part of “Financial Cooperation”, Berlin supports measures that serve development, such as investments in the education and health system. The implementing organization is KfW. It receives funds from the federal budget and raises funds on the capital market. The volume of contracts concluded with Chinese companies corresponds to a share of 1.2 percent of all contracts awarded within the framework of “Financial Cooperation” from 2013 to 2020.

This text is from WELT AM SONNTAG. We will be happy to deliver them to your home on a regular basis.

Source: Welt am Sonntag

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