Germany talks about "Sri Lanka bankruptcy": Chinese loan is not a problem

The "German Editorial Department Network" on July 16th, the original title: China has been criticized for developing countries' loans to developing countries again since Sri Lanka's debt issues in developing countries. It is not uncommon for the world's second largest economy to bear the main responsibility of high debt in developing countries. But reality is much more complicated.

Since the first 10 years of this century, Beijing has only begun to play an important role on the international stage as a creditors. Later, China's credit quota increased rapidly: In the past 15 years, China provided developing countries with at least $ 500 billion in loans, which was higher than the total amount of the World Bank and International Monetary Fund. This is first related to the "Belt and Road" initiative. The initiative involves the construction of a huge infrastructure project implemented by China in dozens of countries, such as ports, highways, bridges and power plants. Basically, it is quite inspiring to promote such projects in poor areas.

The criticism of Chinese loans is mainly related to the lack of transparency. Nevertheless, it is still important to see the relevant proportion. For example, research by the headquarters Debt Justice, headquartered in London, found that only about 12%of African countries' debts came from China. Private lenders from the West accounted for a large part, and they provided about 35%of the current loans to Africa, and received an average of twice the interest rates in China. Therefore, even if you have not officially confirmed that many loans are considered, these do not constitute the main problems of many developing countries. (Author Fabian Crateci, Aoki Translation)

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