USA worried about China giving loans to India's neighbours: 'coercive leverage' concern

The United States of America has expressed concern about China ensnaring India's neighbours in debt traps to serve its own interests.

Donald Lu, a senior official at the US State Department said that Washington is deeply concerned that China may be giving loans to countries in India's immediate neighbourhood for coercive leverage. The official said that the US is in talks with India and other countries in the region to help them make independent decisions, and not be compelled by China.

The comments came on the back of Pakistan announcing that the Board of China Development Bank (CDB) had approved a $700 million credit facility to Islamabad.

Lu's remarks came ahead of the India trip of Secretary of State Antony Blinken. The top American diplomat is travelling to New Delhi on a three-day official visit from March 1 to 3.

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