Chinese Premier Li Keqiang, right, with Papua New Guinea Prime Minister Peter O'Neill in Beijing in April. Photo: EPA
Chinese Premier Li Keqiang, right, with Papua New Guinea Prime Minister Peter O'Neill in Beijing in April. Photo: EPA

Chinese loans pose ‘clear risks’ to stability of Pacific nations, Australian think tank warns

  • In a new study, the influential Lowy Institute found that allegations China was engaging in ‘debt-trap’ diplomacy were overblown
  • But it warned that Pacific nations risk borrowing too much and leaving themselves dangerously exposed to demands from Beijing

Chinese Premier Li Keqiang, right, with Papua New Guinea Prime Minister Peter O'Neill in Beijing in April. Photo: EPA
Chinese Premier Li Keqiang, right, with Papua New Guinea Prime Minister Peter O'Neill in Beijing in April. Photo: EPA
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