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.
This was always the endgame of Belt and Road. Loan money to countries who can’t afford the payments, then turn them into indentured servants and seize all the infrastructure that was built with Chinese loans.
There is Imperialism :C
And Imperialism :D
Lemmy knows which one it loves
They beat out the IMF? Impressive.
Yeah they went to those counties that for some unimaginable reason don’t trust the IMF.
Meet the new boss, same as the old boss.
I mean I guess but the imf charges 2% interest on loans. China charges 5%
Alright: meet the new boss, slightly worse than the old boss, maybe.
China is way way worse than the IMF. The IMF restructures the debts of distressed countries to help them avoid bankruptcy. China sabotages this sort of help by refusing to negotiate on the same terms as other creditors, preventing the IMF from doing it’s job.
Is this the belt part of belt and road?
Charity and extortion. Has there ever been a more iconic duo?
On one hand, does the US ever give charity before the extortion? Not entirely unique to the CPC
The world can have two bullies.
Sure, but do you really want more countries doing it?
buwuduboutamerica 😭😭😭
Less of a silk road and more of a yoke.
They got the roads, now they get the belt.
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1.5trn? Like 1.5 trillion Russian Nevnuts?
why don’t they just write the whole fucking God damn word it’s permanent record that like a million people are going to see on the internet you can spell out the whole goddamn word it’s a few more letters
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.
USAID?
This is world news, comparing USA to China will not be tolerated in this lemmy group. Especially with this kind of anti Chinese article
