These countries owe the most debt to China, is your one of them?

China has made significant loans to nations all around the world throughout the past 20 years, which have helped to fuel its fast economic expansion. In 2022, China, a significant global lender, lent $180 billion to low- and middle-income countries (LMICs). This money frequently promotes infrastructural and economic growth while strengthening China's access to resources and geopolitical clout, as per the reports of MSN.

Belarus

Belarus holds about $3.9 billion in debt to China. As one of China’s top international lenders, the Eastern European country manages this debt by attracting more foreign direct investment (FDI) from China.

Côte d’Ivoire

Côte d’Ivoire, also known as Ivory Coast, is another African nation with significant debt to China, totaling around $3.9 billion. The West African country, renowned for its beaches and rainforests, is among the countries heavily indebted to China.

Cambodia

Cambodia owes China $4.0 billion, which makes up nearly half of its total external debt. The country is involved in China’s Belt and Road Initiative (BRI), aimed at improving international connectivity and cooperation.

Ecuador

Ecuador’s debt to China stands at $4.1 billion. Despite restructuring its debt in 2022 to gain relief until 2025, China remains Ecuador’s primary financial partner.

Nigeria

Nigeria ranks tenth on the list with $4.3 billion owed to China. Although this debt is a small portion of Nigeria’s total public debt, the government reassures that it can manage repayment.

Egypt

Egypt’s debt to China totals $5.2 billion, placing it ninth. The country’s strategic position linking the Middle East to North Africa has led to debt-swapping deals with China for development projects.

Laos

Laos owes China $5.3 billion, which constitutes nearly half of its external debt. China is Laos’s largest creditor, providing substantial funding for infrastructure.

Zambia

Zambia, with a $6.1 billion debt to China, is one of several African nations struggling with substantial debt. After defaulting more than three years ago, Zambia is negotiating a debt restructuring plan with China.

Bangladesh

Bangladesh’s debt to China is also $6.1 billion, although this represents only about 7% of its total external debt. Bangladesh is involved in the BRI, receiving funding for various projects.

Kenya

Kenya’s debt to China amounts to $6.7 billion. Despite this significant figure, Kenya’s external debt comes from various sources, with the World Bank being a major creditor. The IMF-World Bank classifies Kenya as at high risk of debt distress.

Ethiopia

Ethiopia’s debt to China is $6.8 billion, the fourth highest on the list. China holds most of Ethiopia’s foreign debt. The country received a payment suspension in 2023, set to end in mid-2024.

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Sri Lanka

Sri Lanka is heavily indebted to China, with $8.9 billion in loans. The island nation’s strategic maritime position has led to substantial Chinese investments, despite ongoing debt restructuring talks.

Angola

Angola ranks second, owing China $21 billion. This debt is mostly oil-backed, with S&P estimating that 80% of it is tied to the oil sector.

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Pakistan

Pakistan holds the highest debt to China at $26.6 billion. This debt primarily funds infrastructure and energy projects. Experts note that the commercial interest rates make repayment particularly challenging for Pakistan.

FAQs

Which country owes the most debt to China?
Pakistan owes the most debt to China, totaling $26.6 billion. This debt primarily funds infrastructure and energy projects, making repayment particularly challenging due to commercial interest rates.

How much debt does Angola owe to China?
Angola ranks second among countries indebted to China, with $21 billion in loans. A significant portion of this debt is oil-backed, reflecting Angola's reliance on the oil sector.