INTERNATIONAL
US is the biggest recipient of Chinese loans, study shows
A study shows the US is the largest recipient of Chinese loans worldwide, highlighting Beijing’s extensive global credit footprint. - REUTERS
HONG KONG: The United States is the biggest recipient of China's lending activities globally, according to a study which tracked Beijing's credit activities and found it is increasingly lending to higher-income countries over developing countries.
AI Brief
The report, published on Tuesday by AidData, a research lab at U.S. university William & Mary, said China's lending and grant giving totalled US$2.2 trillion across 200 countries in every region of the world from 2000 to 2023.
China has long been seen as a creditor to developing countries through its Belt and Road initiative, but is shifting toward lending to advanced economies — backing strategic infrastructure and high‑tech supply chains in areas such as semiconductors, artificial intelligence and clean energy.
Beijing's portfolio size is two-to-four times larger than previous estimates suggest, AidData said, adding that China remains the world's largest official creditor.
In response to a request for comment on the report, China's Ministry of Foreign Affairs said its overseas investment and financing "adhered to international practices, market principles and the principle of debt sustainability."
CHINESE ENTITIES ACTIVE ACROSS THE U.S.
More than three-quarters of China's overseas lending operations now support projects and activities in upper-middle-income countries and high-income countries.
"Much of the lending to wealthy countries is focused on critical infrastructure, critical minerals and the acquisition of high-tech assets like semiconductor companies," said lead author Brad Parks, AidData's executive director.
The United States topped the list for official sector credit from China, receiving more than US$200 billion for nearly 2,500 projects and activities, the report said.
Chinese state-owned entities are "active in every corner and sector of the U.S.", bankrolling the construction of LNG projects in Texas and Louisiana, data centres in Northern Virginia, terminals at New York's John F. Kennedy International Airport and Los Angeles International Airport, the Matterhorn Express Natural Gas pipeline and the Dakota Access oil pipeline, AidData said.
Beijing has financed the acquisition of high-tech companies, while Chinese state-owned creditors have provided credit facilities for many Fortune 500 companies including Amazon, AT&T, Verizon, Tesla, General Motors, Ford, Boeing and Disney, the report said.
The share of lending to low and lower-middle income countries fell to 12% in 2023 from 88% in 2000. Beijing has also cut lending for infrastructure projects in the "Global South", under its Belt and Road Initiative.
At the same time it has ramped up the share supporting middle-income and high-income countries to 76% in 2023 from 24% in 2000. The United Kingdom for instance received US$60 billion, while the European Union got US$161 billion.
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AI Brief
- AidData report says Chinas global lending reached US$2.2 trillion across 200 countries from 20002023.
- Beijing now focuses on high-income nations, backing infrastructure, semiconductors, AI, and clean energy.
- US tops the list with US$200B credit for projects and Fortune 500 firms, meanwhile EU and UK are also major recipients.
The report, published on Tuesday by AidData, a research lab at U.S. university William & Mary, said China's lending and grant giving totalled US$2.2 trillion across 200 countries in every region of the world from 2000 to 2023.
China has long been seen as a creditor to developing countries through its Belt and Road initiative, but is shifting toward lending to advanced economies — backing strategic infrastructure and high‑tech supply chains in areas such as semiconductors, artificial intelligence and clean energy.
Beijing's portfolio size is two-to-four times larger than previous estimates suggest, AidData said, adding that China remains the world's largest official creditor.
In response to a request for comment on the report, China's Ministry of Foreign Affairs said its overseas investment and financing "adhered to international practices, market principles and the principle of debt sustainability."
CHINESE ENTITIES ACTIVE ACROSS THE U.S.
More than three-quarters of China's overseas lending operations now support projects and activities in upper-middle-income countries and high-income countries.
"Much of the lending to wealthy countries is focused on critical infrastructure, critical minerals and the acquisition of high-tech assets like semiconductor companies," said lead author Brad Parks, AidData's executive director.
The United States topped the list for official sector credit from China, receiving more than US$200 billion for nearly 2,500 projects and activities, the report said.
Chinese state-owned entities are "active in every corner and sector of the U.S.", bankrolling the construction of LNG projects in Texas and Louisiana, data centres in Northern Virginia, terminals at New York's John F. Kennedy International Airport and Los Angeles International Airport, the Matterhorn Express Natural Gas pipeline and the Dakota Access oil pipeline, AidData said.
Beijing has financed the acquisition of high-tech companies, while Chinese state-owned creditors have provided credit facilities for many Fortune 500 companies including Amazon, AT&T, Verizon, Tesla, General Motors, Ford, Boeing and Disney, the report said.
The share of lending to low and lower-middle income countries fell to 12% in 2023 from 88% in 2000. Beijing has also cut lending for infrastructure projects in the "Global South", under its Belt and Road Initiative.
At the same time it has ramped up the share supporting middle-income and high-income countries to 76% in 2023 from 24% in 2000. The United Kingdom for instance received US$60 billion, while the European Union got US$161 billion.
Your gateway to global news, insights, and stories that matter.