Today, China is no longer just a production center or economic power on the world map, but has now become a big player influencing the world economy by giving loans and financial assistance to other countries. From countries like America, Russia, Australia, Pakistan to small and poor countries, China’s money has reached almost every corner. The surprising thing is that America is at the top among the countries to which China is lending. Despite increasing tension, conflict and competition, the fact that ‘Uncle Sam’ is the biggest borrower from China is enough to shock the world.
An author named Dan Wong has written in his book Breakneck that China’s engineering capability, speed of construction and urban transformation have become not just a story of development but a serious challenge for America. His question is simple – “Has China advanced so far that now America is afraid of being left behind?” Meanwhile, the report of AidData Research Lab has made this debate more intense. The report shows that from 2000 to 2023, China has distributed $2.2 trillion in loans and grants around the world, and nearly 200 countries and regions have benefited from it or are burdened with the debt.
The world’s largest official lender
China did not give this money only to economically weaker countries. Only 6 percent amount of assistance has been given in the form of grant or cheap loan. 47 percent of poor countries and 43 percent of rich and developed countries took loans from China. That is, as much as developing countries are becoming dependent on China, equally developed and rich countries have also become financially dependent on China.
According to AidData, China has now become the world’s largest official creditor. Not only this, China’s state-owned companies and banks are investing in infrastructure, mineral resources, airports, pipelines, data centers and high-tech companies all over the world. The report says that Chinese money is invested in 2,500 American projects, which also include big companies like Tesla, Amazon, Disney and Boeing.
A lot of money invested in technology and semiconductor industry
The world often talks about the Belt and Road Initiative (BRI), but according to statistics, BRI accounts for only 20 percent of China’s total foreign borrowing. A lot of China’s money is also going into the technology and semiconductor industries of rich countries. That means, he is strengthening his control not only over roads and bridges but also over the technology of the future.
America, Russia, Australia… India too… all debtors
In 2000, only 11 percent of China’s loans went to rich countries, but by 2023 this will increase to 75 percent. This means that the rich world has become dependent on China’s money at a much faster rate than the poor countries. The list of China’s 10 largest debtor countries is topped by the United States ($202 billion), followed by countries like Russia ($172 billion), Australia ($130 billion), Venezuela ($106 billion). India is also not out of this. India has received $11.1 billion from China in the form of loans and grants.
One thing clearly emerges from all these figures that China’s game is not just about helping in development but about strategic economic influence. Through loans and investments, China is not only building infrastructure in countries but is also turning global political equations in its favor. And this is the reason why China’s role in the politics, technology and trade of the future world is becoming more decisive than ever before.
