When someone wants to buy a big item asset like house or an expensive car but with insufficient fund at hand, he can still take possession of the house/car for immediate use by hire purchase, making monthly instalments over months or years. Get an expensive item immediately and take time to repay the loan.
China's commercial deals with the Global South countries are based on the same formula. The Global South countries are always short of funds for big projects that cost hundreds of millions or billions. They needed money to pay for these projects. China can offer them the money, ie money becomes the big item asset. China can 'sell' the big loan to the Global South countries and get paid by instalments over years. The Global South countries can get the big loan immediately to fund whatever projects or needs of their countries. And they can pay back by instalments in kind, ie raw materials, oil, minerals etc.
This is the reverse hire purchase agreement with the loan/money as the big asset item, repayment in kind, not by money. Another way of looking at this transaction is that China will pay in advance for goods, eg raw material, oil or minerals, and the seller will deliver his goods by instalments.
Such transactions can be seen in different ways or described in different forms. But the mischievous Americans and western media would demonise this as a debt trap to attack China. But when they do the same thing to the Global South countries for centuries, using the same formula but charging very high interest rates, they would not want to talk about it. The real debt traps that the Global South countries are caught in were from the expensive loans given by the West and their banks. Many Global South countries have been kept poor by these white men's debt traps for decades, paying and paying but cannot ever pay back their debt.
China's reverse hire purchase agreements were the best deals the Global South countries could get from the world. And they know. They are not stupid. They compare notes and the terms and agreements, and will end up choosing to take loans from China or BRICS.
The mischievous whites cannot hide the truth for long. They cannot keep on believing that the leaders of Global South countries are stupid and can be duped by their lies. Their credibility and devious schemes have been exposed and no longer trusted by the Global South. The money colonialism is ending with China offering cheaper and better terms for loans or payment in advance...and with no political strings and coercion.
