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COLOMBO, Sri Lanka (AP) — The U.S. announced a $553- million project Wednesday to build a new, deep-water shipping container terminal in the Port of Colombo as it competes with China in international development financing. The U.S.-backed financing comes at a time when Sri Lanka is struggling to recover from a dire financial and economic crisis. Sri Lanka borrowed heavily from China to build the port and other infrastructure including an airport and a city being built on reclaimed land. Both neighboring India and China are jostling for influence in Sri Lanka and both have already invested in expanding facilities at the Colombo port. Colombo port also has a terminal run by China Merchants Port Holdings.

Persons: ”, Scott Nathan, Sri Lanka’s John Keells, Lanka’s, Wang Wenbin, William & Mary, AidData, China's, saysChina, Bradley Parks, “, ” ___ Didi Tang Organizations: South, U.S . International Development Finance Corp, West, Local, Sri, Sri Lanka’s John Keells Holdings, Initiative, Foreign Ministry, China Merchants Port Holdings, CHEC Port City Colombo Co, China Communications Construction Company, William & Locations: COLOMBO, Sri Lanka, U.S, Port, Colombo, China, Bay, Bengal, Beijing, Hambantota Port, Hambantota, India, oceanside, Port City, Virginia, “ Beijing, Washington

☆ Developing countries owe China at least $1.1 trillion – and the debts are due
▼ + stars: | 2023-11-07 | by ( Simone Mccarthy | ) edition.cnn.com time to read: +8 min

Hong Kong CNN —Developing countries owe Chinese lenders at least $1.1 trillion, according to a new data analysis published Monday, which says more than half of the thousands of loans China has doled out over two decades are due as many borrowers struggle financially. Now, 55% of China’s official sector loans to developing countries have entered their repayment periods, according to the analysis of more than two decades of China’s overseas funding across 165 countries released by AidData. Instead, China is providing substantial numbers of emergency rescue loans, according to AidData. Overall funding commitments from China to the developing world declined at the start of the pandemic, according to AidData. Half of China’s non-emergency lending portfolio to developing countries is now provided via syndicated loan arrangements, with more than 80% of these arrangements involving those Western or multilateral partners, they said.

Persons: William & Mary, Xi Jinping, ”, Brad Parks, Hajarah Nalwadda, ’ AidData, ” Parks, “ Organizations: Hong Kong CNN, William &, Initiative, AidData, CNN, “, Bank of International, Getty, World Bank Locations: China, Hong Kong, Virginia, Beijing, America, Southeast Asia, Switzerland, Kiryandongo, Uganda, Xinhua, United States, AidData, Zambia, Ghana

Reuters GraphicsMuch of China's growing rescue lending is denominated in renminbi, the report found, with loans in the Chinese currency overtaking U.S. dollars in 2020. Overdue payments to Chinese lenders have also risen. The arrangement is controversial because it gives China debt seniority, meaning other lenders, including multilateral development banks, could get paid second during any coordinated debt relief. Half of its non-emergency lending in 2021 was syndicated loans, 80% of that alongside Western banks and international financial institutions. Loan commitments to African countries fell from 31% of the total in 2018 to 12% in 2021, while lending to European countries almost quadrupled to 23%.

Persons: Tingshu Wang, AidData, Xi Jinping, —, Mary, Brad Parks, Rachel Savage, Clare Baldwin, Tomasz Janowski Organizations: REUTERS, Rights, Beijing, Initiative, People's Bank of China, State Administration of Foreign Exchange, Mary university, Reuters, Thomson Locations: Beijing, China, Rights JOHANNESBURG, HONG KONG, U.S, Sri Lanka, Zambia, renminbi, Africa

☆ China Is Lending Billions to Countries in Financial Trouble
▼ + stars: | 2023-11-06 | by ( Keith Bradsher | More About Keith Bradsher | ) www.nytimes.com time to read: +1 min

China’s early, rapid expansion of the Belt and Road Initiative alarmed U.S. officials, who saw the program as eroding American influence. The Trump administration and Congress merged and expanded two agencies in 2018 to create the development finance corporation. Between 2014 and 2017, AidData found, China was providing nearly three times as much development financing as the United States. But by 2021, China was outspending the United States by only 30 percent. (The American loan for up to $553 million would be for expansion of the busy port in Colombo, Sri Lanka’s capital and main city.)

Persons: Trump, China’s, AidData, Mahinda Rajapaksa Organizations: United States International Development Finance Corporation, Initiative Locations: Greece, Sri Lanka, China, United States, Hambantota, Colombo, Sri

☆ Putin meets 'dear friend' Xi in Beijing. Here are the top 3 takeaways
▼ + stars: | 2023-10-18 | by ( Clement Tan | ) www.cnbc.com time to read: +7 min

Sergei Savostyanov | Afp | Getty ImagesChina President Xi Jinping and his Russian counterpart Vladimir Putin were all smiles when they met in Beijing. "Dear friend, I am very glad to see you again," Putin said in a statement ahead of his bilateral meeting with Xi Wednesday. Xi is also looking to Putin as China seeks to reinvigorate its economic foreign policy program. watch nowPutin traveled to Beijing, knowing Xi would guarantee his safety. Here are the main takeaways from the meeting, which underline why China and Russia share strong ties.

Persons: Vladimir Putin, Xi Jinping, Sergei Savostyanov, Putin, Xi, AidData, Mary, Srettha Thavisin, Viktor Orban, Dmitry Peskov, Peskov, Wang Yi, Faisal bin Farhan Al Saud, Biden, it's, Peng Liyuan Organizations: Sputnik, Forum, Afp, Getty Images China, Initiative, Xi, College of William, Moscow, European Union, EU, Rosneft, Gazprom, Tass, Soviet Union, Hamas, U.S, United, of, U.S . Department of Commerce, Getty Locations: Beijing, Ukraine, China, Russia, Thailand, Hungary, Israel, Gaza, Iran, United Nations, Saudi Arabia, Europe, U.S

Hailed by Xi as a “project of the century,” the BRI has emerged as a glaring symbol of China’s rise as a global power. Chinese investment in BRI projects has tapered off as the world’s second-biggest economy slows. The opening ceremony of Cambodia's Morodok Techo National Stadium, funded by China's Belt and Road Initiative, in Phnom Penh on December 18, 2021. Later that year, Xi pledged that China would not build any new coal-fired power projects abroad. The BRI has also spurred other countries to increase their own efforts toward supporting infrastructure projects in the developing world.

Persons: Russia’s Vladimir Putin, Xi Jinping, Xi, –, Cambodia's, Lon Jadina, William & Mary, Marshall, China, ” Organizations: Beijing CNN, Initiative, China's, Getty, BRI, Boston, Global, Policy, William &, Marshall Plan, Global Development Policy Center, World Bank, Global Development, United Arab, European Union Locations: Beijing, China, Israel, Asia, Latin America, Africa, Europe, Ukraine, United States, Phnom Penh, AFP, Papua New Guinea, Kenya, Sri Lanka, West Africa, America, Southeast Asia, Hambantota, Saudi Arabia, United Arab Emirates, France, Germany, Italy, East

☆ China has poured billions into Africa’s infrastructure. Is it now tightening the tap?
▼ + stars: | 2023-09-26 | by ( Simone Mccarthy | ) edition.cnn.com time to read: +11 min

The impact of those funds is felt across Africa, where residents in major cities like Lagos, Nairobi and Addis Ababa now transit daily via railways, highways and airports built in recent years with Chinese loans and often by Chinese construction firms. But understanding how much money is flowing out of China into global development is notoriously tricky as Beijing doesn’t share this data openly and a wide range of financial entities play roles. How all this plays out could have a significant impact on developing countries’ access to much-needed infrastructure funding. China is also navigating the second decade of the Belt and Road amid stark economic challenges at home. China in 2017 released guidance on promoting a “green” Belt and Road, which called for sustainable development and strengthening environmental protection.

Persons: laud, Xi, Roberto Matchissa, Oyintarelado Moses, ”, Moses, Ammar A, Malik, “, Austin Strange, Yasuyoshi Chiba, AidData’s Malik, HKU’s Organizations: Hong Kong CNN, Initiative, Boston University Global Development, Center, Getty, CNN, Global China Initiative, Global Development Policy, William, Mary’s Global Research Institute, University of Hong, Global Development Locations: China, Hong Kong, Africa, Beijing, Lagos, Nairobi, Addis Ababa, Ukraine, Maputo, Katembe, Mozambique, AFP, Kazakhstan, Zambia, Ghana, University of Hong Kong, Kenya, United States, China’s

Together, experts say, these efforts aim to enhance China’s military reach, which currently includes only one operational overseas naval base in Djibouti on the Horn of Africa. “It’s a question of when – not if – China will secure its next overseas military outpost,” he said. This photo taken on August 1, 2017, shows Chinese People's Liberation Army personnel attending the opening ceremony of China's new military base in Djibouti. The Hambantota commercial port in Sri Lanka has long been considered a prime candidate for a Chinese naval base. However, China’s path to developing permanent overseas bases, if indeed that is its aim, is not straightforward.

Persons: FDD, Craig Singleton, “, –, ”, Tea Banh, FDD’s Singleton, Tang Chhin Sothy, Singleton, Xi Jinping, Stringer, ” AidData, Stephen J, Townsend, ” Townsend, Bata, Ali Bongo Ondimba, Ken Ishii, ’, ” Singleton, China’s, Aaron Favila, Isaac Kardon, Kardon, ” Kardon, BlackSky Singleton, Rob Wittman, Fu Tian, Seth Moulton, ” Moulton, Martin Meiners Organizations: South Korea CNN, People’s Liberation Army Navy, Foundation for Defense of Democracies, People’s Liberation Army, PLA, Ream, Base, CNN, China’s Ministry of Defense, Ministry of Foreign Affairs, Ream Naval Base, ” Cambodian Defense, Cambodian, Getty, Fleet, Communist Party, US, Liberation Army personnel, William & Mary University, Sri Lankan Navy, US Africa Command, Gabonese, of, Xinhua, Naval Research Academy, Carnegie Endowment, International Peace, East China Seas, China, Control, Organization, Force, Strategic, International Studies, Defense Department, Chinese Communist Party, ”, Virginia Republican, The Defense Department, Qingdao Port, People's Liberation Army Navy, China News Service, America, Pentagon, US Defense Department Locations: Seoul, South Korea, China, Beijing, Washington, Cambodia, Argentina, Cuba, Djibouti, of Africa, Africa, West Asia, Gulf, Thailand, United States, Preah Sihanouk, AFP, Horn of Africa, “, South, Taiwan, Virginia, —, Sri Lanka, Bata , Equatorial Guinea, Gwadar, Pakistan, Kribi, Cameroon, Ream, Vanuatu, Nacala, Mozambique, Nouakchott, Mauritania, Colombo, Equatorial Guinea, Gabon, West Africa, South China, East Asia, East, Asia, Washington In Washington, Nanchang, Qingdao, Shandong province, Massachusetts

President of China Xi Jinping attends the plenary session during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg, South Africa on August 23, 2023. GIANLUIGI GUERCIA/Pool via REUTERS Acquire Licensing RightsBEIJING/JOHANNESBURG, Aug 24 (Reuters) - China's leader Xi Jinping told African leaders at a meeting on the sidelines of the BRICS summit on Thursday that China would launch initiatives to support Africa's industrialisation and agricultural modernisation. "China will better harness its resources for cooperation with Africa and initiatives of businesses to support Africa in growing its manufacturing sector and realizing industrialisation and economic diversification," Xi said without providing details. Xi's pledge was made as the BRICS Summit wrapped up, during a meeting with leaders and ministers from the African Union and 11 African countries including Libya, Nigeria, Senegal and Zambia. "In 2009, it issued grants and loans worth $88 billion to support infrastructure projects in Africa.

Persons: China Xi Jinping, GIANLUIGI, Xi Jinping, Xi, Xi's, Wu Peng, Brad Parks, William, William & Mary, Parks, David Monyae, Michael Martina, Carien du Plessis, Rachel Savage, Jonathan Oatis Organizations: REUTERS Acquire, Rights, African Union, U.S, William &, University of Johannesburg's Centre, Thomson Locations: China, Sandton, Johannesburg, South Africa, Rights BEIJING, JOHANNESBURG, Africa, Libya, Nigeria, Senegal, Zambia, Brazil, Russia, India, Egypt, Ethiopia, China Africa, Kenya

WHAT IS THE COMMON FRAMEWORK? The Common Framework requires debtor countries to secure restructuring assurances from any bilateral lenders first and commercial and multilateral lenders second - to Beijing's dismay. "We call on multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, to participate in developing countries' debt relief efforts," Mao said. In Paris, analysts expect China to continue to voice support for the Common Framework but for debt relief to be dispensed "case-by-case". The last time global policymakers met to discuss the Common Framework in Washington, China proposed the IMF should speed up and improve information sharing on debt sustainability analyses.

Persons: Li Qiang, acceding, Yi Gang, Mao Ning, Mao, Qin Gang, Sri, Wang Wenbin, Joe Cash, Ryan Woo, Shri Navaratnam Organizations: Paris Club, International Monetary Fund, Bank, IMF, World Bank, Foreign Ministry, China's, France, Thomson Locations: Paris, China, Zambia, Chad, Ethiopia, Ghana, United States, U.S, Beijing, Washington, CHINA, Addis Ababa, Japan, India, France, Sri Lanka's

☆ Opinion | China’s Lending Practices Are Not a Good Look
▼ + stars: | 2023-04-19 | by ( Peter Coy | ) www.nytimes.com time to read: +1 min

This is undoubtedly a factor in China’s diminished standing in the world. Playing ball really would promote “peace and development for all humanity” while winning China some badly needed friends in the world. The explanation for China’s tough stance is discouraging for the short term but possibly encouraging for the long term. But there are signs that China’s leaders will eventually come around to seeing the value of working with the I.M.F. “In more and more countries, Suriname and elsewhere, we’re starting to see more coordination between the People’s Bank of China, the I.M.F.

☆ China's 'Belt and Road' grew out of a lending spree. Now those loans may be its problem
▼ + stars: | 2023-04-14 | by ( Sumathi Bala | ) www.cnbc.com time to read: +8 min

Bloomberg | Getty ImagesAt its peak, China's Belt and Road Initiative was seen as the centerpiece of Beijing's engagement with the world. According to the report, China issued 128 emergency rescue loans worth $240 billion to 22 countries — including Pakistan, Sri Lanka and Turkey, among others. 'Trying to salvage Belt and Road'Chinese efforts to revamp Belt and Road have been underway since 2020, according to one observer. "A nod to the concern that many Belt and Road projects were not economically viable to begin with. "The increased indebtedness in many Belt and Road countries is a direct consequence of Beijing's overshooting in the pre-2020 phase," said Zhong.

WASHINGTON, March 29 (Reuters) - The United States is working hard to counter China's influence in international institutions and in lending to developing countries, U.S. Treasury Secretary Janet Yellen said on Wednesday. Yellen said she was concerned by some of China's activities globally, particularly in lending to developing countries. China has lent hundreds of billions of dollars to build infrastructure in developing countries, but lending has tailed off since 2016 as many projects have failed to pay the expected financial dividends. China is negotiating debt restructurings with countries including Zambia, Ghana and Sri Lanka and has been criticised for holding up the processes. In response, it has called on the World Bank and International Monetary Fund to also offer debt relief.

☆ Belt and Road Initiative: China spending billions to bail out megaproject's debtors
▼ + stars: | 2023-03-28 | by ( Jessie Yeung | ) edition.cnn.com time to read: +6 min

For one, China’s loans are far more secretive, with most of its operations and transactions concealed from public view. The PBOC requires an interest rate of 5%, compared to 2% for IMF rescue loans, the study said. There is also public concern in some countries over issues like excess debt and China’s influence. Accusations that Belt and Road is a broad “debt trap” designed to take control of local infrastructure, while largely dismissed by economists, have sullied the initiative’s reputation. In January, Chinese Foreign Minister Qin Gang rejected the accusations of China creating a “debt trap” in Africa, a major recipient of Belt and Road investments.

REUTERS/Thomas Suen/File PhotoJOHANNESBURG, March 28 (Reuters) - China spent $240 billion bailing out 22 developing countries between 2008 and 2021, with the amount soaring in recent years as more have struggled to repay loans spent building "Belt & Road" infrastructure, according to a study published Tuesday. People's Bank of China (PBOC) swap lines accounted for $170 billion of the rescue financing, including in Suriname, Sri Lanka and Egypt. China's rescue lending is "opaque and uncoordinated," said Brad Parks, one of the report's authors, and director of AidData, a research lab at William & Mary College in the United States. China is negotiating debt restructurings with countries including Zambia, Ghana and Sri Lanka and has been criticised for holding up the processes. In response, it has called on the World Bank and International Monetary Fund to also offer debt relief.

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