A recent study by AidData reveals that the United States is the largest recipient of Chinese loans, receiving over $200 billion for 2,500 projects. This finding challenges the common perception of China as a primary creditor to developing nations through its Belt and Road initiative. Instead, the study indicates a shift towards lending to advanced economies, particularly in critical infrastructure, minerals, and high-tech sectors.
The report, published by AidData, a research lab at William & Mary, highlights that China’s lending and grant-giving activities totalled $2.2 trillion across 200 countries from 2000 to 2023. The United States, Britain, and the European Union received $200 billion, $60 billion, and $161 billion, respectively. The study also notes that many Western-led financial institutions collaborate with Chinese state-owned creditors.
Brad Parks, AidData’s executive director, emphasizes that Chinese lending to wealthy countries focuses on critical infrastructure, minerals, and high-tech assets. Chinese state-owned entities are active in various sectors of the U.S., funding projects like LNG projects, data centers, airport terminals, and pipelines. They have also financed the acquisition of high-tech companies and provided credit facilities for major Fortune 500 companies.
However, the study shows a significant shift in lending patterns. The share of lending to low and lower-middle-income countries decreased to 12% in 2023 from 88% in 2000. Conversely, lending to middle-income and high-income countries increased to 76% in 2023 from 24% in 2000. This shift raises questions about the implications for developing nations and the potential impact on global economic dynamics.