Nicaragua spent US$260 million to purchase 1,000 buses from China in order to improve urban traffic congestion. Surprisingly, however, this cooperation triggered dissatisfaction in India. #Nicaragua

Nicaragua is one of the largest countries in Central America, with magnificent natural scenery and rich natural resources. However, the economic and transportation environment like many other countries in Central America, Africa, and Asia has always been a challenge for the country. 

Managua, the capital of Nicaragua, which is a political, cultural, and economic center, it faces serious traffic congestion problems every day. According to statistics, only about 30% of citizens can commute to get off work on time, and the remaining 70% suffer from traffic congestion. At the same time, there are only about 200 buses available for residents across the country, and most of them are school buses that have been phased out in the United States. 

This was not long ago when Nicaragua spent US$260 million to purchase 1,000 buses from China in order to improve urban traffic congestion. Surprisingly, however, this cooperation triggered dissatisfaction in India. Previously, India had placed an order with the Chinese company BYD for 500 electric buses, but the cooperation failed due to India's credit problems. So, why does China choose to cooperate with Nicaragua but is unwilling to cooperate with India?

Whether China trusts Nicaragua more than India is a complex question with no easy answer but trade and business be it between two individuals, groups, or countries dictated by some fundamentals that no party would be able to avoid. There are a number of factors that could be considered, including the following:

• The nature of the two countries' relationships with China. Nicaragua has a long history of close ties with China, dating back to the Cold War era. India, on the other hand, has had a more complex relationship with China, marked by both cooperation and competition.
• The economic and strategic importance of the two countries to China. Nicaragua is a relatively small and poor country, but it is located in a strategically important region, Central America. India, on the other hand, is a much larger and more economically powerful country, but it is also located further away from China.
• The creditworthiness of the two countries. India has a higher credit rating than Nicaragua, but it is still considered a developing country with a relatively high level of debt. Nicaragua, on the other hand, is considered a high-risk borrower.

It is important to note that there is no evidence to suggest that China trusts Nicaragua more than India simply because it has agreed to sell Nicaragua 1,000 buses. In fact, China has also sold a large number of buses to India in recent years.

It is also important to note that India's creditworthiness is not necessarily a major concern for China. China is already India's largest creditor, and it has continued to lend money to India even as India's debt levels have risen.

It is more likely that China's decision to sell buses to Nicaragua is motivated by a combination of strategic and economic factors. Nicaragua is a close ally of China, and it is located in a region of strategic importance. China is also eager to expand its economic footprint in Central America, and the sale of buses is a way to do that.

As for the question raised by the Insider Project about whether India's creditworthiness is not stable, by citing its deals both with France and the United Kingdom, there is some evidence to suggest that this may be the case. India's debt-to-GDP ratio has been rising in recent years, and its foreign exchange reserves have been declining. However, India's economy is still growing, and its government has taken steps to address its debt concerns.

Overall, it is difficult to say definitively whether China trusts Nicaragua more than India. There are a number of factors that could be considered, and China's decision to sell buses to Nicaragua is likely motivated by a combination of strategic and economic factors.