Chinese Rise in the Indo-Pacific Region: Debt Trap or Economic Interconnectivity (Case Studies of Pakistan, Sri Lanka, and Myanmar)

Abstract

This research article also examines China’s economic interest in the Indo-Pacific through the case studies of Pakistan, Sri Lanka, and Myanmar. China has used through very ambitious Belt and Road Initiative (BRI) to rapidly extend its economic reach in these countries, investing in infrastructure, energy, and trade. Despite them, these investments have led to significant economic growth yet many have thrown criticisms towards them. The China-Pakistan Economic Corridor (CPEC) has attracted attention in Pakistan because of issues over rising debt, the corresponding geopolitical risks, and tensions with India. Sri Lanka’s experience of leasing its debt-ravaged Hambantota Port to China, fearing a ‘Debt trap’ is lost sovereignty, has found new repeats in that. Likewise, Myanmar faces challenges similar to those of the China-Myanmar Economic Corridor (CMEC) and Kyaukpyu Port project through political instability, human rights issues, and environmental protection issues, and is becoming increasingly dependent on China. In this article, we examine these issues in depth, examining how China’s economic activity affects the political and social dynamics of these countries and by extension the Indo-Pacific. The research also looks at the criticism of China’s 'debt trap diplomacy' and the strategic implications of its ascent, especially as other global powers compete with Beijing in the region.