Rethinking Debt-Trap Diplomacy

Abstract

This paper analyses the claim that Montenegro is a country towards which China is practising debt diplomacy. The study aims to assess whether Montenegro’s borrowing from Chinese banks can be taken as an example of deliberate Chinese lending intended to subjugate Montenegro both economically and politically. The case study method is used to draw conclusions regarding the validity of accusations about the harmfulness of the debt to Montenegro, or lack thereof. In addition, the paper examines the economic parameters of the relationship between China and Montenegro, as well as the political reactions to the indebtedness within Montenegro. It also considers the reactions of the European Union and the USA, within the context of China’s geopolitical role in Europe. Based on the findings, it appears unlikely that China is engaged in ongoing debt diplomacy with Montenegro. The criticisms of China’s involvement in the Montenegro case seem politically motivated and unwarranted.

Keywords

• china
• montenegro
• debt-trap diplomacy
• soft power