Developing nations are entering a new and worrying phase in their relationship with China. A new report from Boston University finds that, in 2022 and 2023, these countries paid more in debt service to China than they received in new Chinese loans.
The shift is starting to reverse what was once a net flow of capital to the Global South, and the stakes are high.
The study, Reviving Chinese Development Finance in the Global South, shows that net debt transfers, defined as the amount of new lending minus repayments of principal and interest, turned negative during those two years. In total, developing countries repaid approximately $3.9 billion more per year than China disbursed anew. Reuters
Between 2008 and 2024, China’s policy banks, the China Development Bank and the Export-Import Bank, committed more than $472 billion across more than 900 infrastructure projects in transport, energy, water, ICT and more. Those investments once helped build public assets and spur growth in many parts of the Global South. Reuters
But lending patterns are changing. New project financing has shrunk, and China is increasingly routing funds through intermediate development banks rather than direct project lending.
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture....
Israeli forces have maintained a tight closure on Hebron in the occupied West Bank for a second day, with Palestinian media reporting home raids, m...
German police have detained a suspect after a major fire broke out at the historic Kehlsteinhaus, known as the “Eagle’s Nest&rdqu...
Israeli military bulldozers have begun demolishing buildings in the West Bank city of Hebron on Friday, 23 October, following armed clashes with Palestinians that left two Israeli soldiers dead, according to the Israeli military.
Saudi Aramco has ordered staff to evacuate its headquarters amid escalating Houthi attacks on the kingdom. Two people were killed in an attack on Dammam airport, while Iran's IRGC Navy claimed strikes on seven vessels and warned the U.S. of a wider response.
Russian strikes on Ukraine overnight killed at least two people and injured 15 others, including two children, Ukrainian authorities said. Meanwhile, Russia said it had intercepted the vast majority of 630 Ukrainian drones launched towards Moscow.
Super typhoon Champi is set to batter Japan’s Okinawa Prefecture from Friday (23 October), bringing violent winds, torrential rain and waves up to 11 metres high, as airlines cancel flights and organisers scrap a major festival.
A powerful magnitude 7 earthquake has struck Tibet in southwestern China, killing 16 people and injuring 65, while forcing more than 12,000 residents to relocate as rescue teams respond to widespread aftershocks.
Around 11,000 people joined a demonstration in Orléans on Saturday against the National Rally congress, according to the local prefecture.
German police have detained a suspect after a major fire broke out at the historic Kehlsteinhaus, known as the “Eagle’s Nest”, a mountain retreat once used by senior Nazi officials, including Adolf Hitler.
Typhoon Champi swept past Taiwan on Saturday, leaving one person dead and more than 500 injured as strong winds and torrential rain brought down trees, cut power and disrupted transport across the island.
Canadian Prime Minister Mark Carney on Friday dismissed accusations that Canada planned to interfere in next month’s U.S. midterm elections, saying he was disappointed by comments from the American ambassador.
Kenya has recorded a second death from Ebola, the health ministry said late on Friday, as the outbreak that began in the Democratic Republic of Congo continues to spread across Africa.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment