Djibouti has similarly seen extensive Chinese investment, including the establishment of China’s first overseas military base in 2017 and $1.4 billion of infrastructure lending from 2012-2020. This had built up public external debt of over 70% of GDP by 2020, over half of which had been owed to China, and caused debt distress and sovereignty issues. <\/p>\n\n
Controversy around \u00abdebt trap diplomacy\u00bb<\/em> In response to criticism and changing global economic dynamics, China has been adjusting its approach to engaging with Africa. At a recent Beijing summit, President Xi Jinping pledged $50 billion in new investment to African nations, and greater focus on manufacturing investments and job creation, compared to merely large-scale infrastructure projects. This reflects an effort to create more balanced and sustainable economic relationships. <\/p>\n\n The \u00abdebt trap diplomacy\u00bb controversy testifies to the need for African nations to subject foreign investments to careful conditions scrutiny and for China to promote open and mutual benefit cooperation.<\/p>\n
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