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Posted on 05/27/2025 9:31:23 AM PDT by BenLurkin
The most vulnerable nations on Earth are facing a “tidal wave” of debt repayments as a Chinese lending boom starts to be called in, a new report has warned.
The analysis, published on Tuesday by Australian foreign policy thinktank the Lowy Institute, said that in 2025 the poorest 75 countries were on the hook for record high debt repayments US$22bn to China. The 75 nations’ debt formed the bulk of the total $35bn calculated by Lowy for 2025.
“Now, and for the rest of this decade, China will be more debt collector than banker to the developing world,” the report said.
The pressure to repay was putting strain on local funding for health and education as well as climate change mitigation.
“China’s lending has collapsed exactly when it is needed most, instead creating large net financial outflows when countries are already under intense economic pressure,” it said.
The loans were largely issued under President Xi Jinping’s signature belt and road initiative (BRI), a state-backed global infrastructure investment programme which has underwritten national projects from schools, bridges and hospitals to major roads and shipping and air ports.
The lending spree turned China into the largest supplier of bilateral loans, peaking with a total of more than $50bn in 2016 – more than all western creditors combined.
The BRI focused primarily in developing nations, where governments struggled to access private or other state-backed investment. But the practice has raised concerns about Chinese influence and control and drawn accusations that Beijing was seeking to entrap recipient nations with unserviceable debt. Last month another analysis by the Lowy Institute found that Laos was now trapped in a severe debt crisis, in part because of over-investment in the domestic energy sector, mostly financed by China.
(Excerpt) Read more at theguardian.com ...
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Three of government's most heinous 21st century scams.
The bill for “Belt and Road” comes due.
Also known as debt trap diplomacy. China comes into your little poor country and builds a port, which you then owe on forever. And when you can no longer pay the debt the port becomes theirs ... and those ports can be swiftly become military in nature.
China’s version of gunboat diplomacy. We will see if they have the ability to enforce repayment. I have a feeling they’re going to get told to eff off.
Xi still thinks this is the 19th century.
Biggest mistake Nixon made was ‘opening up’ China. You can’t ‘open up’ a communist country. You aren’t making a pact with the Chinese people. You’re showing weakness and opportunity to a totalitarian regime - and ALL Marxist governments are totalitarian.
Supposedly this was done to drive a wedge between Russia and China and help us win the Cold War. However, the enemy of my enemy is not always my friend. It would have been OK to just reopen diplomatic relations, but this was followed by Clinton giving them most favored nation trade status.
Yep. That’s the problem for China. Sovereign immunity. No matter what the contract says, any country can just tell him to screw off. Then what? Does he invade? There would be a diplomatic chit-storm and everybody in the world would unite against him if he does. That’s exactly what happened when Western Countries made big loans to 3rd world countries in the 70s and 80s. They just steal the money and then default. There’s nothing you can do about it.
China has to be careful how fast it calls in these loans.
Calling in a loan means selling off bonds, and a major sell-off drives the market value of similar bonds downward.
Beneficium accipere libertatem est vendere
Publilius Syrus
See also PIIGS
Sucks to be them. If you’re stupid enough to lay down with dogs. Knock yourself out waking up with fleas.
Will libs and lib celebrities call to forgive e their debt like they do when they owe the USA money
Duh.
Certainly China will fail in Africa. Just like every other colonial power in history.
Maybe they will want land to build military bases and other concessions in lieu of payment.
Yep. Maybe PRC will take some resources or infrastructure and then is stuck hanging on to it. Many other places they’ll have to abandon or “let” the locals rn (into disrepair).
“Heart of darkness” the sequel
Xi Jinping’s belt and road = Loan Shark
Last I looked, the Africans were shooting, beating and hanging the ChiComms. I think Xi and his pirates will be happy to get out of Africa alive and not end up as the main entree in the village stew.
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