HONG KONG (Reuters Breakingviews) - FINE PRINT. China is sabotaging some international credit cooperation, but not in the way typically feared. An analysis of 100 of the country’s loans to poor countries over the last two decades by U.S. research outfit AidData undermines arguments that Beijing ensnares them in so-called debt traps: It neither charged predatory rates nor demanded strategic assets like ports as collateral. And although the sample used reflects less than 5% of an estimated $900 billion of credit China has extended to developing countries, the contractual fine print reinforces fears about China. In addition to overly broad confidentiality clauses, 75% of loans scrutinised were excluded from restructuring deals with the Paris Club group of developed-economy lenders. China Development Bank often demands that if borrowers take action deemed adverse to any Chinese entity, it triggers a default. For wealthy nations seeking to arrange debt relief, the AidData findings ultimately raise as many trust issues as they resolve. (By Pete Sweeney)
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