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This study examines China’s debt-trap diplomacy toward Armenia which could undermine the country’s democratic development, independent foreign policy, human rights, and overall, peace, and security in the volatile region. The main objective of the article is to produce a comprehensive study of China’s asymmetric relations with Armenia in various frameworks (the Belt and Road Initiative, the North-South Road Project, and the Eurasian Economic Union), and to generate policy solutions to prevent Beijing’s debt-trap diplomacy toward Yerevan that erodes the sovereignty of Armenia and challenges American leadership in the South Caucasus.