China has become the world’s biggest debt collector, as the money it is owed from developing countries has surged to between $1.1tn (£889bn) and $1.5tn, according to a new report. An estimated 80% of China’s overseas lending portfolio in the global south is now supporting countries in financial distress. Since 2017, China has been the world’s biggest bilateral lender; its main development banks issued nearly $500bn between 2008 and 2021. While some of this predates the belt and road initiative (BRI), Beijing’s flagship development programme has mobilised much of the…
Tag: Zambia
China’s Lending Practices Are Not a Good Look
President Xi Jinping of China wants his nation to be seen as a responsible world leader, to “contribute China’s wisdom and solutions to the cause of peace and development for all humanity,” as he said on New Year’s Eve. But China is taking a narrow view of its self-interest in negotiations over debt relief to poor countries such as Sri Lanka and Zambia. This is undoubtedly a factor in China’s diminished standing in the world. YouGov Cambridge Globalism polls found that China’s image was worse in 2022 than in 2019…
Pressure Mounts on China to Offer Debt Relief to Poor Countries Facing Default
WASHINGTON — China, under growing pressure from top international policymakers, appeared to indicate this week that it is ready to make concessions that would unlock a global effort to restructure hundreds of billions of dollars of debt owed by poor countries. China has lent more than $500 billion to developing countries through its lending program, making it one of the world’s largest creditors. Many of those countries, including several in Africa, have struggled economically in the wake of the pandemic and face the possibility of defaulting on their debt payments.…
Pressure Mounts on China to Offer Debt Relief to Poor Countries Facing Default
WASHINGTON — China, under growing pressure from top international policymakers, appeared to indicate this week that it is ready to make concessions that would unlock a global effort to restructure hundreds of billions of dollars of debt owed by poor countries. China has lent more than $500 billion to developing countries through its lending program, making it one of the world’s largest creditors. Many of those countries, including several in Africa, have struggled economically in the wake of the pandemic and face the possibility of defaulting on their debt payments.…