US - China Trade War: National Security Adviser Warns Ukraine Of China's 'Debt Diplomacy' Amid Tariff Battles

U.S. national security adviser John Bolton has warned Ukraine of China's global influence, saying that it should be wary of the country's so-called "debt diplomacy."

Ukraine is currently looking at the legal ramifications of selling Motor Sich, a prominent Ukrainian helicopter and airplane engine manufacturer, to Chinese state-owned corporation Beijing Skyrizon Aviation.

"We laid out our concerns about… Chinese trade practices, threats to national security we've seen in the United States…" Bolton said in Kiev.

Ukraine's national anti-monopoly board is still working on whether to greenlight the Motor Sich-Beijing deal. The U.S. government is worried that if Motor Sich is acquired by China, it would give Beijing vital defense technology.

The U.S. views Ukraine as a strong ally towards Russian influence in Eastern Europe and also wants the country to take its side on China-related issues. Bolton also warned Ukraine about China's telecommunications firm Huawei, whose goods have been blacklisted in the U.S. due to security concerns.

Various members of the Trump administration, such as Vice President Mike Pence, have warned of "debt diplomacy," an idea that suggests that China loads developing countries up with debt in order to bring them under its direct political influence.

Arthur Culvahouse Jr., the U.S ambassador to Australia and a key Trump ally, said in March that China is attempting to use "payday loans diplomacy" to put developing Pacific nations into "debt traps."

"The money looks attractive and easy upfront, but better read the fine print," Culvahouse Jr. said.

China is also Africa's top-trade partner, with the country pledging over $60 billion in loans to the continent through 2021. Multiple African countries are burdened with Chinese debt.

Kenya, a major African economy, has $50 billion in debt, with 72% of it coming from China. Ethiopia's capital, Addis Ababa, has been called a Chinese city due to investments from China totaling $12.1 billion since 2000.

Some analysts fear that developing countries who become dependent on Chinese debt are not able to become self-reliant. The Chinese government has denied such claims.

The White House has taken an aggressive stance against China, with President Trump ordering tariffs of 15% to 30% on virtually all Chinese goods into the U.S.