After undergoing the “Century of humiliation”, Chinese mended themselves by transforming the country from “Humiliation to Rejuvenation”. The country underwent numerous troubling times before moving onto the path of development and modernization. However, now China stands as an excellent example of a potential economic power emerged in a short course of time. Therefore, the merchandise expansion of China is now seen as its debt trap maneuvers and an extended policy of economically trespassing the countries. The research article thus analyzes the policies under which China is said to trap the developing nations from Africa and Asia with unpayable loans in exchange to their strategic assets. It seeks to answer the question of whether the debt trap diplomacy linked with China is real, if so, then how? And how China reacts to the allegations in order to falsify the narratives propagated by US and India and what myths surround this debate? This study employs a qualitative methodology to investigate the effectiveness of various policies by analyzing information gathered from reputable websites, articles in established journals, and scholarly research papers. Through thematic content analysis, this research seeks to elucidate the actual impacts of these policies and dispel any unfounded and mythical perception. Correspondingly, the researchers of this article have explored the two perspectives of the debt trap diplomacy to base their result with strong evidence of neo-imperialist policies of China. This research employs comprehensive case studies to examine Chinese debt-trapping tactics in developing countries. It notes discernible long-term implications, but limited direct evidence implicating China. The research offers a nuanced exploration of Chinese debt trap diplomacy, addressing misconceptions and advocating an impartial scholarly approach to assess these perspectives.