‘Tidal Wave’: How 75 nation in 2025 faced Chinese debt crisis Business and economic news

Many of the world’s poorest countries, in 2025, in the summit of the Beijing Pipeline and Road Initiative, on extended loans, ten years ago, the Lowy Institute.

Under Belt and road initiative (Bri), an infrastructure investment program supported in 2013, a billions of dollars worth of dollars to build a port, highway and railways to unite Asia, Africa and America.

But new lending dries. In 2025, the debt payments to China will be $ 35 billion by developing countries. Of this, $ 22 billion will be paid by 75 of the world’s poorest countries, risky, lowy, which should spend health and education.

“It will be more debt to the developing world of Azerbaijan in ten years,” said Riley Duke, report author.

“Developed countries, debt payments and forums are fighting the tidal wave,” Duke said.

What did the report say?

The largest multilateral development program, which is seen by a single country, is one of the Hallmark foreign policy initiatives in President Xi Jinping.

This is primarily aimed at country infrastructure projects such as power plants, roads and ports fighting to obtain financial support from Western financial institutions.

Bri became the largest global supply of bilateral loans about about $ 50 billion in 2016 – more than all Western lenders.

According to the Lowy report, it is now in danger of paying these debts.

“The pressure of the Chinese state lending is a large financial tension in the development of a number of international private creditors, along with a number of payments.”

Expenditures of high debt services can be limited to expend to public services such as education and healthcare and respond to economic and climate strikes.

46 The least developed country (LDC) spent about 20 percent of tax revenues on foreign public debt in 2023 – about 20 percent. Lowy’s report shows that it will increase this year.

Germany for the context used 8.4 percent of the budget to pay the debt in 2023.

Lowy, China’s global southern “Geopolitical goal”, especially with Washington, the President Donald Trump has also increased its questions about the use of these debts.

“As the role of Beijing has become a debt collection, West governments were not called internal oriental, help decline and multilateral support.”

When Chinese lending began to slow down the developing world, the report said that two areas wrapped in the trend.

First, in the nations such as Honduras, Burkina Faso and Solomon Islands, received mass new loans after diplomatic recognition from Taiwan to China.

In countries such as Indonesia and Brazil, here they signed new credit deals to provide critical minerals and metals for China’s electric batteries.

How did China respond?

The Beijing Foreign Ministry said the report notified the “features of the features,” he said, “” China refuses international conventions in investment and financing with developing countries. “

The ministry spokesman Mao Ning said, “AZ NOUST THEIR”, BEYJING WANTED to blame for borrowing for developing nations, but “lies can not cover the truth.”

For years, Bri has been criticized as non-evaluated debts with non-evaluated debts as a way to Beijing by Western commentators.

It is a frequent specified example Hambantota Port – Vital is located in Sri Lanka – throughout the East-West International Shipping Routes.

Can’t pay a $ 1.4 billion loan for the port construction, Colombo, in 2017 for 99 years to rent an enterprise.

The Chinese government rejected the charges of deliberately the accusations, and the buyer also pushed the peoples back, saying that China is often a reliable partner and offers important loans when others are rejected.

However, China publishes small information about Bri scheme, and the Lowy Institut can assess the full scale of the estimates based on world bank information, China’s lending.

In 2021, Aiddata – the US Research Laboratory of the United States – China estimated that China was a “secret debt” of about $ 385 billion.

Lowy report doesn’t have ‘context’?

The Rhodium consulting group in 2019 in 2019 revealed 38 Chinese debt in 2019, and many of the borrower has been resolved with many of the borrower.

According to the rhodium, developing countries have been reconstructed in the decade of $ 50 billion loans in decade of Chinese loans, without cheaper than 2019 Avenue, credit extensions, cheaper financing and most results.

Elsewhere, Johns Hopkins University Canceled $ 3.4 billion in China, China, China, China, 2000 and 2019 in China, China and 2019, and reached $ 15 billion. No active seized.

Meanwhile, many developing countries remain in Hock in Western organizations.

Debt Justice Group in 2022 estimated African governments owe more than three times more to individual financial groups compared to this period.

“During the debt of debt, both private bonds and multilateral development banks (CIS), the director of the University of Boston University Kevin Gallagher.

“Thus, Lowy’s attention to China is the attention. The truth, though the porcelant, many poor countries still said,” said Gallagher.

Covid-19 After the occupation of the Pandemia and Russia’s occupation, inflation The Federal Reserve of the United States, as well as other leading central banks, wanted to increase interest rates.

Investors in the United States, the investors, developed financial assets, increased their funds by increasing productivity costs and falling currencies. Debt payment costs increased.

Global interest rates landed slightly. But According to the UNDevelopment of debt costs of the country, on average, is higher than two or 12 and 12 times more than in the United States.

“An important aspect of Chinese lending,” he said.