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The opening ceremony of China's military base in Djibouti. Photo: STR/AFP/Getty Images

China is leveraging debts to gain control of strategic ports and secure primary access to African oil in Angola, Kenya and Djibouti.

Why it matters: The Chinese are offering up attractive infrastructure projects to the countries that need them most and following up with escalating demands for influence. That approach will spread to even more of the globe under Beijing's trillion-dollar Belt and Road Initiative.

Angola is using its precious resource, crude oil, to chip away at a $25 billion debt to China.

  • Since the two countries established diplomatic ties in 1983, China has loaned $60 billion to Angola through investments, loans and projects — one of the most recent being a $600 million deep sea port off the African nation's shores.
  • Instead of using cash, Angola pays China back with oil (it's Africa's second-largest producer) which means its ability to repay debt depends on the price of oil, writes Yinka Adegoke, Quartz's Africa editor, in his weekly brief. It also leaves less oil for Angola to sell to other trading partners.

Djibouti is home to China's only overseas military base, and it could soon give up a key port to Beijing.

  • After developing ties with African countries through its involvement in a global anti-piracy effort, China built up enough of a relationship to set up a full-scale military base in Djibouti, where the U.S. also has a base. Tensions escalated this month when Chinese military fired lasers at U.S. aircrafts from the base.
  • And China's influence in Djibouti may expand. As of the end of 2016, China owned 82% of Djibouti's foreign debt, per a report from the Center for Global Development.
  • "Chinese shippers could use the country to tap lucrative East African markets. China also built a railway from Addis Ababa to the port to transfer Ethiopian goods," the Wall Street Journal's Nikhil Lohade and Matina Stevis-Gridneff write.
  • Mahamoud Ali Youssouf, Djibouti's foreign minister, brushed off concerns, saying Chinese debt is "so far manageable." He said, "Let me first underline the fact that no country can develop itself without having a strong infrastructure. And China is, from that perspective, a very good partner."

The majority of Kenya's external debt is Chinese, and the country has a growing trade deficit with Beijing.

  • More than 70% of Kenyan foreign debt is owned by China, per Quartz. And Kenya has just joined the Asian Infrastructure Investment Bank, China's answer to the World Bank. "The growing interest in the multilateral financial institution in Africa points to China’s emergence as a favored lender, rivaling the World Bank," per Adegoke.
  • But the Kenyan public is wary of China's influence, he writes. "The concern is Uhuru Kenyatta’s government and others before had been naive in their lopsided dealings with the Chinese."

Go deeper: Sri Lanka falls into the Chinese debt-trap

Go deeper

More than a dozen injured in downtown Austin shooting

Police tape in Austin, Texas in 2018. Photo: y Carolyn Van Houten/The Washington Post via Getty Images

A shooting in a busy part of downtown Austin, Texas, early Saturday injured at least 13 people, including two who are in critical condition.

The state of play: Gunfire erupted around 1:30 a.m. along 6th Street, a popular area with bars and restaurants. The suspected shooter remains at large, Austin police said. "It is unknown if there is one, or multiple suspects involved," they noted, adding the shooting appears to be an isolated incident.

Biden to urge G7 to take unified approach to countering China

Photo: Hollie Adams/Bloomberg via Getty Images

President Biden on Saturday is expected to urge fellow G7 leaders to adopt a unified approach to countering China's rising global influence, AP reports.

Driving the news: The G7 leaders are set to unveil a multi-billion-dollar global infrastructure plan aimed at rivaling Beijing's efforts in the developing world.

Why America's post-vaccine summer is off to a slow start

Illustration: Sarah Grillo/Axios

Americans are itching to put pandemic life behind them, but many of the necessary ingredients for a summer of carefree fun — everything from neighborhood pools to car rentals — still aren't fully available.

The big picture: Labor shortages, scrambled supply chains and simple logistics are all making it harder for a whole range of businesses to meet post-pandemic demand, and that’s making “hot vax summer” a little harder to pull off.