China's Global Lending and Investment
Between 2000 and 2023, China lent over $2 trillion in loans and grants to more than 80% of the world’s countries and regions. The United States was the largest beneficiary of these Chinese loans.
Key Beneficiaries and Loan Figures
- Chinese state-owned entities lent about $200 billion for nearly 2,500 projects and initiatives in the U.S., which is over 9% of the total amount lent by China globally.
- Over 95% of this lending was conducted by Chinese state-owned banks, enterprises, and the central bank.
- Entities in Russia and Australia were the second and third biggest beneficiaries, receiving $172 billion and $130 billion respectively.
- The European Union's 27 member states received $161 billion for 1,800 projects and activities.
Focus Shift in China's Lending Strategy
- China’s lending focus has shifted from aid to commercial lending for developed countries, with over 75% of transactions with U.S. companies being commercial in nature.
- By 2023, China’s loan to the U.S. increased from $320 million in 2000 to $19 billion.
- The Belt and Road Initiative (BRI), launched in 2013, initially accounted for 75% of China's lending operations but has now decreased to about 25%.
- China's global official development assistance commitments fell to $1.9 billion in 2023.
Investment Strategies and Regulatory Factors
- China has an 80% success rate in overseas mergers and acquisitions due to weak foreign capital inflow screening mechanisms.
- Funds were often channeled through offshore shell companies and international bank syndicates.
India and China's Lending Relationship
- Indian entities have borrowed or were granted $11.1 billion from China, primarily for the energy sector and banking and financial services.
- The borrowing consisted of a mix of commercial and developmental intent.
The data was sourced from a report titled ‘Chasing China: Learning to play by Beijing’s lending rules’ by AidData.