The Countries Most In Debt To China
//Countries heavily in debt to China are mostly located in Africa, but can also be found in Central Asia, Southeast Asia and the Pacific, data from The World Bank shows. China is currently the preferred lender to the world’s low-income countries, which owe 37% of their debt to China in 2022, compared to just 24% in bilateral debt to the rest of the world...
The Chinese "New Silk Road" project, a program to finance the construction of port, rail and land infrastructure across the globe, has been a major source of debt to China for participating countries. At the end of 2020, of the 97 countries for which data was available, those with the highest external debt to China were all involved in the project, namely Pakistan ($77.3 billion of external debt to China), Angola (36.3 billion), Ethiopia (7.9 billion), Kenya (7.4 billion) and Sri Lanka (6.8 billion)...
The idea that China could gain significant leverage over countries and their infrastructure in the case of repayment issues has been cited often, like in the case of a troubled Sri Lankan port that was built with Chinese funds and that China ultimately took a 70% stake in. The Laotian railway that has been burdening the country with debt is also 70% Chinese-owned.//
Read more:
https://www.forbes.com/sites/katharinabuchholz/2022/08/19/the-countries-most-in-debt-to-china-infographic/
Source: Forbes #Aug19
#Debt #RiseofChina #WorldEconomy #InternationalRelations
//Countries heavily in debt to China are mostly located in Africa, but can also be found in Central Asia, Southeast Asia and the Pacific, data from The World Bank shows. China is currently the preferred lender to the world’s low-income countries, which owe 37% of their debt to China in 2022, compared to just 24% in bilateral debt to the rest of the world...
The Chinese "New Silk Road" project, a program to finance the construction of port, rail and land infrastructure across the globe, has been a major source of debt to China for participating countries. At the end of 2020, of the 97 countries for which data was available, those with the highest external debt to China were all involved in the project, namely Pakistan ($77.3 billion of external debt to China), Angola (36.3 billion), Ethiopia (7.9 billion), Kenya (7.4 billion) and Sri Lanka (6.8 billion)...
The idea that China could gain significant leverage over countries and their infrastructure in the case of repayment issues has been cited often, like in the case of a troubled Sri Lankan port that was built with Chinese funds and that China ultimately took a 70% stake in. The Laotian railway that has been burdening the country with debt is also 70% Chinese-owned.//
Read more:
https://www.forbes.com/sites/katharinabuchholz/2022/08/19/the-countries-most-in-debt-to-china-infographic/
Source: Forbes #Aug19
#Debt #RiseofChina #WorldEconomy #InternationalRelations
Forbes
The Countries Most In Debt To China [Infographic]
Chinese loans to developing nations—affecting many in Africa, Asia and the Pacific—have high interest rates and short repayment windows. These "commercial-style" loans are harder to repay and less transparent than other bilateral loans, while questions of…
#DeutscheBank CEO warns recession is inevitable, says #Germany must cut reliance on #China
//The German economy stagnated in the second quarter, while producer price inflation hit a record high in July. The German finance ministry cited reduced gas supplies from Russia, rising costs of energy and other goods, and persistent supply chain disruptions in part due to China's "zero-Covid" policy...
"When it comes to dependencies, we also have to face the awkward question of how to deal with China. Its increasing isolation and growing tensions, especially between China and the United States, pose a considerable risk for Germany," Sewing said, adding that China had become a "cornerstone" of the German economy.
He highlighted that China accounts for around 8% of German exports and 12% of imports, while more than one-tenth of the sales of companies listed on the country's DAX stock index go to China, adding that the pandemic made clear the extent to which German supply chains rely on Russia.
"Reducing this dependency will require a change no less fundamental than decoupling from Russian energy," he said.//
Source: CNBC #Sept7
https://www.cnbc.com/2022/09/07/deutsche-bank-ceo-warns-of-recession-says-germany-must-cut-china-reliance.html
#Inflation #Recession #WorldEconomy
//The German economy stagnated in the second quarter, while producer price inflation hit a record high in July. The German finance ministry cited reduced gas supplies from Russia, rising costs of energy and other goods, and persistent supply chain disruptions in part due to China's "zero-Covid" policy...
"When it comes to dependencies, we also have to face the awkward question of how to deal with China. Its increasing isolation and growing tensions, especially between China and the United States, pose a considerable risk for Germany," Sewing said, adding that China had become a "cornerstone" of the German economy.
He highlighted that China accounts for around 8% of German exports and 12% of imports, while more than one-tenth of the sales of companies listed on the country's DAX stock index go to China, adding that the pandemic made clear the extent to which German supply chains rely on Russia.
"Reducing this dependency will require a change no less fundamental than decoupling from Russian energy," he said.//
Source: CNBC #Sept7
https://www.cnbc.com/2022/09/07/deutsche-bank-ceo-warns-of-recession-says-germany-must-cut-china-reliance.html
#Inflation #Recession #WorldEconomy
CNBC
Deutsche Bank CEO warns recession is inevitable, says Germany must cut reliance on China
Deutsche Bank CEO Christian Sewing has warned that a recession in Germany is inevitable, and urged the country's leaders to accelerate its decoupling from China.