Country, estimated to be owed up to $1.5trn, is increasing penalties for late payments and cutting back on infrastructure projects

Country, estimated to be owed up to $1.5trn, is increasing penalties for late payments and cutting back on infrastructure projects

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 investment in developing countries.

But a new report by researchers at the AidData research lab at William & Mary, a public university in Virginia, found that China, the world’s second largest economy, is now navigating the role of international debt collector as well as being a bilateral funder of major infrastructure projects.

  • dreadedsemi@lemmy.worldEnglish
    812·
    1 year ago

    Does the US have similar program? I like to compare. But I couldn’t find anything. Maybe US only provided aid and expect international brownies in return.

    • Hillock@feddit.deEnglish
      7·
      1 year ago

      No, not really. But that’s more because the government and economy of China and the USA works fundamentally different. The US does a lot of foreign investment. But it’s done by the private sector. Chinese companies aren’t allowed to do foreign investments without approval of the Chinese government. So everytime a “private” Chinese company does an investment abroad, the Chinese government is directly involved.

      The closest would probably be the landlease to Ukraine. All/most of the aid packages have to be paid back. Not necessarily with direct payments but by awarding (re-)building projects to US companies.

      And obviously there is the IMF where the US pays the highest quota to and therfore has the highest voting power in how the money of the IMF is distributed.

    • livus@kbin.social
      6·
      1 year ago

      @dreadedsemi the closest is the World Bank group. The US is the largest participant and has the most votes. Similar situation with the IMF which is also quartered in Washington.

    • Sgt_choke_n_stroke@lemmy.worldEnglish
      23·
      1 year ago

      This is world news, comparing USA to China will not be tolerated in this lemmy group. Especially with this kind of anti Chinese article