China 'spends this decade' collecting debts from dozens of countries

China will play more of a debt collector than a lender to developing countries by the end of this decade, according to a new report.

A train runs on the Orange Line in Lahore, Pakistan on February 2, 2024 - Photo: XINHUA

According to Reuters, a report by the Lowy Institute (Australia) released today shows that the world's poorest countries are expected to make record debt payments to China in 2025, related to loans granted a decade ago during the peak of the "Belt and Road" initiative (BRI).

Under the BRI initiative launched by Beijing in 2013, China has lent billions of dollars to countries to build infrastructure connecting Asia, Europe and Africa, while seeking to boost its trade and influence.

Of the total $35 billion in debt that developing countries owe to China in 2025, about $22 billion will be paid by the 75 poorest and most vulnerable countries.

That could threaten health andeducation budgets in these countries.

"From now until the end of this decade, China will play the role of debt collector rather than lender to developing countries," said the report's author, Riley Duke.

According to the report, in 54 developing countries, debt payments to China will exceed the total amount that countries have to pay to the Paris Club - a group of Western creditors.

“While Beijing has shifted to the role of debt collector, Western governments are focusing on internal issues, with aid tapering and multilateral support waning,” the report said.

In October 2023, the Chinese government released a white paper on the BRI to mark the 10th anniversary of the initiative. The white paper said that since its launch, the BRI has evolved "from ideas to actions, from vision to reality, and from general framework to specific projects."

According to the Global Times , as of June 2023, China has signed more than 200 BRI cooperation agreements with more than 150 countries and 30 international organizations.

Beijing has hit back at criticism that BRI-related loans are a “debt trap,” saying China does not accept this.

At a press conference, Chinese Foreign Ministry spokesman Mao Ning said: "China acts in accordance with market rules and international law, and respects the will of relevant countries.

We have never forced any party to borrow money or pressured any country to accept debt. We do not attach any political conditions to loan agreements and do not pursue any particular political interests."

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Source: https://tuoitre.vn/trung-quoc-danh-thap-ky-nay-de-thu-no-hang-chuc-nuoc-20250526205511884.htm