- The Philippines is close to accepting loans from China that are 1,100% more expensive than ones from Japan.
- The country's chief economist said it will accept the loan as it needs "more friends," as relations between the two countries warm after years of territorial disputes in the South China Sea.
- The loan is part of a so-called debt-trap diplomacy in which China engages in infrastructure projects in poorer countries, a pattern it has followed to establish its global Belt and Road initiative.
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China's debt-trap diplomacy reaches the Philippines, which is likely to accept Chinese loans 1,100% more expensive than other options
The Philippines' chief economist said his country needs "more friends," as relations with China finally warm.
The Philippines is close to accepting Chinese loans that are up to 1,100% more expensive than those from Japan, in another instance of China's debt-trap diplomacy.
It's an issue that looks set to increase. During President Xi Jinping's first five year term, China doubled its diplomacy expenditure.
This week China announced it's increasing the 2018 budget by more than 15%, twice the increase on military spending, to $9.5 billion.
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Xi made his intentions clear in October last year.
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