Developing Countries Face "Tidal Wave of Debt Repayments" to China: Report
- The Australian Lowy Institute reported on May 27, 2025, that developing countries face record debt repayments to China this year, mainly from Belt and Road Initiative loans.
- This situation arises because China’s large-scale lending during the 2010s peaked around 2016, but repayments are now surpassing new loans due to expiring grace periods.
- The repayments total about $35 billion in 2025, with $22 billion owed by the poorest 75 countries, which risks cutting budgets for health, education, and climate programs.
- Riley Duke, the author of the report, explained that developing nations are facing a large and increasing burden of loan repayments and interest payments to China, which is transitioning from being a major lender to primarily acting as a debt collector.
- This shift may strain public finances and raise geopolitical concerns, though Chinese authorities deny creating debt traps and emphasize adherence to international norms.
28 Articles
28 Articles
China is now the biggest debt collector in the developing world, report says
China has dramatically curtailed its lending in recent years. Now, it’s emerging as the largest debt collector for many of the world’s poorest nations — a shift that threatens to undermine poverty reduction efforts and fuel instability, according to a new report.Lending for China’s Belt and Road Initiative — which includes funding for a massive series of new railways, ports and roads in the developing world — began winding down before the COVID-…
China Lends, Developing Countries Pay the Price: World's Poorest Countries Must Repay 19 Billion Euros
75 of the world's poorest countries will have to repay more than 19 billion euros in debt to China this year. While China presents itself as a helpful partner to developing countries, the sky-high debts show the other side of the coin.
China under pressure to recover developing country loans
The NewsChina’s transformation from a lender to a debt collector threatens to reshape developing-world politics, a new report argued. Though China-watchers have long argued that warnings of what Western officials call Beijing’s “debt-trap diplomacy” are overblown, the country nevertheless faces growing domestic pressure to recover outstanding loans, rather than restructure them. As a result, debt-servicing costs on China’s 2010s-era infrastructu…
Coverage Details
Bias Distribution
- 55% of the sources are Center
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage