China’s Shift to Debt Collector in Developing Countries—From Lender to Loan Shark

For the world’s poorest countries, Beijing has gone from an investing partner to a hard-nosed creditor.

Sri Lankan road construction laborers work along a road in Colombo on Aug. 5, 2018. - Sri Lanka's central bank on Aug. 3 announced it had secured a $1 billion Chinese loan as the island, a key link in Beijing's ambitious Belt and Road initiative, develops closer relations with Asia's largest economy. Lakruwan Wanniarachchi/AFP via Getty Images

Commentary

In the early 2000s, China played a modest role as a global lender. But through its Belt and Road Initiative, Beijing began funding the building of bridges, ports, and railways in the Global South, calling it “win-win cooperation.”