Snapshot 3:Tue, May 27, 2025 4:53:12 PM GMT last edited by Vandita

China Becomes Top Debt Collector as Poor Nations Face $22B Bill

Published MAY 27

story

Above: Chinese President Xi Jinping with Brazil's President Luiz Inacio Lula da Silva (L) at the Great Hall of the People on May 13, 2025, in Beijing. Image credit: Tingshu Wang/Pool/Getty Images News via Getty Images

The Spin

China's providedlending crucialpractices financingare whenpredatory Westerndebt-trap creditorsdiplomacy refuseddesigned to investextract ingeopolitical developingconcessions from vulnerable nations,. offeringThe atiming moreof reliablemassive partnershiploans thanto inconsistentcountries Westernlike aid.Honduras Beijing'sand lendingthe followedSolomon internationalIslands practicesimmediately andafter marketthey principles,switched withrecognition multilateralfrom institutionsTaiwan andreveals WesternBeijing's commercialtransactional creditorsapproach actuallyto representingdevelopment thefinance. primaryThese sourceunsustainable of debt pressureburdens forare developingforcing countries. Theto currentchoose narrativebetween unfairlyservicing scapegoatsChinese Chinaloans whileand ignoringfunding howbasic Westernservices, nationssuch areas cuttinghealthcare foreign aid and withdrawingeducation, supportcreating precisely whenthe theseleverage countriesChina need help mostintended.

Guardian The New York Times

China provided crucial financing when Western creditors refused to invest in developing nations, offering a more reliable partnership than inconsistent Western aid. Beijing's lending followed international practices and market principles, with multilateral institutions and Western commercial creditors representing the primary source of debt pressure for developing countries. The current narrative unfairly scapegoats China while ignoring how Western nations are cutting foreign aid and withdrawing support when these countries need help most.

Global Times XINHUA