Debt Trap Diplomacy? A Case Study of China's Belt and Road Initiative Projects in Sri Lanka and Indonesia

Abstract

Purpose
This study investigates the widespread concerns regarding China's purported
debt-trap diplomacy, ostensibly concealed within Belt and Road Initiative projects across Asia.

Method
Adopting a qualitative methodology, it applies established International Relations theories to empirical evidence derived from case studies.

Findings
The central argument posits that China does not deliberately impose
unsustainable debts on recipient states to acquire assets or extend military
influence, as such strategies would undermine Beijing's foreign policy imperatives under President Xi Jinping's administration. Successful execution of BRI projects throughout Asia is essential for realizing these objectives, precluding the disruptions associated with project failures.

Originality
This study examines the complexities of Sri Lanka and Indonesia’s experiences with China's Belt and Road Initiative, scrutinizing the extent to which domestic factors rather than Chinese malintent contribute to project setbacks and financial challenges from the lens of global business diplomacy perspective that combines economic statecraft and debt trap diplomacy.