Tag: foreign countries

As both India and China refuse to cede ground in Doklam , raising the possibility of a conflict between the two countries, India has tried to checkmate China by putting China’s domination under threat. Line of Credit(LoC) are soft loans sanctioned by one country to another with low interest rates to fund infrastructure, agricultural, education projects and enhance co-operation between the two countries i. e. LoCs are soft loans to foreign countries to execute projects of their choice. China is the leader in providing LoCs to under developed and developing countries. But China by no means provides LoCs at low interest rates often sending countries into debt traps. Countries like Sri Lanka, Laos and Myanmar are debt trapped by China. In return China uses its leverage for favourable deci...