Benue State University, Makurdi

Blowing the Whistle on Legal implications of Unfair Chinese International Finance Export and Investment Activities in Developing Countries: Fact or Fiction?

King James Nkum * and Julius Onivehu Beida**

Abstract

This research was prompted by the recent boom in international finance export and trading activities as practised by China in the light of the wide criticism it has been attracting from several quarters bordering on allegation of unethical lending practices. The doctrinal methodology was employed in this study. Our findings revealed that the Chinese export credit financing has continued to skyrocket remarkably over the last decades. This ‘going-global’ strategy by leveraging on export finance instruments has helped to consolidate its economic ties with several developing countries, mostly in Africa. This vantage position has given China significant access to natural resources and new markets, while enhancing its sphere of influence to become a global superpower. This ‘inordinate’ ambition as amplified by China’s debt-trap diplomacy raises suspicion about the Asian Tiger’s plot to recolonize its trade partners, contrary to the rules of engagement under international economic law. The suspicion and accusation are informed by the fact that the export credit facilities advanced to these poor countries are exploitative and constitute a threat to the borrowers, the international community, as well as the fact that China is unwilling to comply with global standards. This article, therefore, recommended inter alia, for China to review its modus operandi by ensuring strict adherence with global standard and transparency in its international finance export and investment dealings with developing countries. On their part, the developing countries were advised to adopt stronger bargaining approach by insisting on mutually beneficial dealings based on equal terms.

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