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Do you remember Myanmar stopping a Chinese-financed dam in 2011?
To prevent future disruptions to signed deals with China, there now exists a cross-default clause in China Development Bank's contracts. A default on a signed deal with China means a stoppage of all projects with China.
Argentina's new government tried to replicate Myanmar's idea of canceling a Chinese dam.
"But Macri’s hands were tied in the negotiations. Some weeks earlier, Zhang Zhijie, president of the China Development Bank, had paid a visit to Buenos Aires to give a polite warning to Argentina’s new government. As leader of the world’s largest development bank, and the main lender to Argentina’s infrastructure projects, Zhang wanted to remind Argentine officials to read the fine print of their loan agreement."
Argentina's new government blinked and did not trigger the cross-default clause. Argentina gave up on halting one of the Chinese dams.
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China Made Mauricio Macri a Deal He Couldn’t Refuse | Foreign Policy
"Gaining access to the official documents only after coming to power, the incoming government was told by China’s top banker that the hydropower dams agreement contained a cross-default clause: In the event it was canceled, China’s loan for the Belgrano railway project would be stopped."
To prevent future disruptions to signed deals with China, there now exists a cross-default clause in China Development Bank's contracts. A default on a signed deal with China means a stoppage of all projects with China.
Argentina's new government tried to replicate Myanmar's idea of canceling a Chinese dam.
"But Macri’s hands were tied in the negotiations. Some weeks earlier, Zhang Zhijie, president of the China Development Bank, had paid a visit to Buenos Aires to give a polite warning to Argentina’s new government. As leader of the world’s largest development bank, and the main lender to Argentina’s infrastructure projects, Zhang wanted to remind Argentine officials to read the fine print of their loan agreement."
Argentina's new government blinked and did not trigger the cross-default clause. Argentina gave up on halting one of the Chinese dams.
----------
China Made Mauricio Macri a Deal He Couldn’t Refuse | Foreign Policy
"Gaining access to the official documents only after coming to power, the incoming government was told by China’s top banker that the hydropower dams agreement contained a cross-default clause: In the event it was canceled, China’s loan for the Belgrano railway project would be stopped."
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