China's Transition: From Capital Provider to Chief Debt Collector
China is transitioning from a capital provider to a leading debt collector, with 75 developing countries owing a record USD 22 billion in loans. As its Belt and Road Initiative loans mature, China faces mounting domestic pressure and international scrutiny over its lending practices. The situation raises questions about its reputation as a development partner.
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- China
China has evolved from a capital provider to a debt collector for 75 developing nations, with loans totaling USD 22 billion due this year, according to the Lowy Institute.
This shift comes as China's Belt and Road Initiative lending, which grew significantly in the 2010s, now sees repayments outpacing new loans. The growing debt burden raises diplomatic challenges for China amidst scrutinization of its borrower relationships.
The Chinese Foreign Ministry has downplayed the report, asserting that their international cooperation aligns with global practices and emphasizing that multilateral institutions are major creditors. However, China's lending strategy, especially regarding infrastructure projects, remains under critical examination.
(With inputs from agencies.)
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