Washington: The United States has emerged as the largest recipient of China’s global lending, according to a new study that highlights a shift in China’s lending focus. Traditionally a major creditor to developing countries, China is increasingly providing loans to high-income nations to support strategic infrastructure and high-tech supply chains.
According to Thai News Agency, a report released by AidData, a research lab at William and Mary University in the US, revealed that China’s global lending and aid activities amounted to $2.2 trillion across 200 countries from 2000 to 2023. While China has been known for its Belt and Road Initiative targeting developing nations, the report indicates a pivot towards lending to more advanced economies.
The report noted that the size of China’s loans was two to four times larger than earlier estimations. China remains the world’s largest official creditor, with over three-quarters of its outbound lending now aimed at middle- and high-income countries. Brad Parks, executive director of Eddata and lead author of the report, emphasized that loans to wealthy nations are primarily focused on critical infrastructure and high-tech assets.
The United States, in particular, has received over $200 billion in official government loans from China for nearly 2,500 projects. Chinese state-owned companies are active across the US, funding projects such as LNG facilities in Texas and Louisiana, data centers in Northern Virginia, and terminals at major airports like JFK in New York and LAX in Los Angeles. Additionally, Beijing has backed acquisitions of high-tech companies and provided loans to major US corporations, including Amazon, AT and T, Verizon, Tesla, General Motors, Ford, Boeing, and Disney.
The report highlighted a significant decline in China’s lending to low- and lower-middle-income countries, with their share of loans expected to fall to 12 percent in 2023 from 88 percent in 2000. Conversely, lending to middle- and high-income countries has surged to 76 percent by 2023 from 24 percent in 2000. For instance, the UK received $60 billion in loans, while the EU obtained $161 billion.