Foreign Media: Developed Countries Borrow from China: China's Role in the Global Economy is Changing
Over the past two decades, China has become one of the most important participants in the global financial system. Its loan and investment activities span developing and developed countries, covering key areas such as infrastructure, industry, and technology. These processes indicate that a new model of international financial relations is gradually taking shape, with China playing a central role.
An article in The New York Times points out that China's loans not only benefit low-income countries but also the world's largest economies, which has made us reevaluate the scale and direction of China's role in the global financial system.
The article states that China has long used loans to developing countries to expand its influence. However, a new study shows that no country has received more financing from China than the United States. As one of the world's most active lenders, China has provided over $1 trillion in funding to developing countries for building roads in Africa, ports in South America, and railways in Central Asia. However, over the past two decades, the biggest beneficiary of Chinese financing has been the United States. Data from the research institution AidData shows that Chinese banks have provided $200 billion in funding support to U.S. companies and projects. This funding has been used for building pipelines, data centers, and airport terminals, and it has also financed projects by companies such as Tesla, Amazon, Disney, and Boeing.
AidData estimates that since 2000, Chinese state-owned enterprises have provided $2.2 trillion in loans and grants globally, which is two to four times higher than previous estimates. This study, covering the period from 2000 to 2023, provides a more comprehensive view of China's role as an international lender. The research demonstrates how China is using financial resources to consolidate its position in strategic areas, including through the "Belt and Road" initiative. This massive plan has allowed China to gain influence in regions previously overlooked by Western countries.
The article in The New York Times points out that China has recently reduced its loans to poor countries while increasing its loans to wealthy countries such as Australia and the United Kingdom. According to AidData data, China currently provides loans to high-income countries that are roughly equivalent to the amount it provides to developing countries. Loans provided by China to developed countries are usually given in the form of credit lines to governments and large corporations. The lenders are mostly state institutions, such as the Bank of China and the Agricultural Bank of China. These financings mainly flow into key mineral mining, infrastructure development, and sensitive technology areas such as semiconductors. Experts believe this could enable Beijing to gain economic control over strategic raw material reserves, supply chains, and key maritime routes.
Original: www.toutiao.com/article/1849244748160000/
Statement: This article represents the views of the author himself.