KUŞAK ve YOL GİRİŞİMİNİN FİNANSMANI: ÇİN’İN BORÇ TUZAĞI MI?
FINANCING THE BELT AND ROAD INITIATIVE: CHINA’S DEBT TRAP?

Summary/Abstract: The Belt and Road Initiative, China's largest infrastructure investment initiative in the 21st Century, is the first core of the transformation of the Chinese state capitalism model into an international investment model. The most important reason that led the initiative to be called a state-driven investment initiative is that the financing of projects in the initiative is provided by Chinese state-owned commercial and policy banks and sovereign wealth funds. However, the provision of infrastructure financing through sovereign-guaranteed preferential loans leads to debt-equity swap agreements with Chinese state-owned enterprises, particularly if underdeveloped and developing countries are unable to pay their debts. The debt trap, defined as China consciously pushing small economies into excessive BRI borrowing to seize strategic assets, is at the center of discussions that BRI is a political project. This study will focus primarily on how China transfers state capital to BRI financing through analysis of state-owned banks and sovereign wealth funds. It will then be analyzed whether projects in debt-distressed countries are of strategic importance to China.

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