In the 1950s and 1960s, when it lent money to other Communist states, China accounted for a small share of world GDP, so the lending had little or no impact on the pattern of global capital flows. Such hype lacks a basic understanding of the law of population development, it said. Daniel Grizelj/Getty Images. It is often kept off government balance sheets, directed to state-owned companies and banks, joint ventures or private institutions, rather than directly from government to government. The white population are being dealt a bad hand in South Africa.Very few are expressing any concern about them even less doing anything about it. For individual content and infographics in your Corporate Design, Gatestone also reserves the right to edit comments for length, clarity and grammar, or to conform to these guidelines. "And much of China's development financing is fundamentally a commercial operation.". In the past, Western countries were guilty of dragging African countries in particular into debt. While Biden vegetates Xi is trick or treating across Africa.It's the American version of "while Rome burned".It will be interesting to see how Red China deals with Islamists. We compiled data from hundreds of primary and secondary sources, put together by academic institutions, think tanks, and government agencies (including historical information from the Central Intelligence Agency). BRI projects were more likely to be associated with corruption, labour scandals or environmental issues than other Chinese development deals. Widely regarded as an economic miracle, China embraced widespread centralized economic reforms, averaging a GDP growth of 10% annually and lifting half of its 1.3 billion people out of poverty . "If a borrower fails to repay its debt," says Brad Parks, Executive Director of AidData, "China can simply debit funds from [this] account without having to collect on bad debt through a judicial process.". The Week is part of Future plc, an international media group and leading digital publisher. India, by contrast, has not achieved the same lightspeed development in manufacturing and infrastructure. When publishing one of these graphics, But a fear of war lingers due to North Koreas increasing nuclear capabilities. by John Richardson . Good luck. This pattern can also be seen in Australia, Belgium, Canada, France, Israel, the Netherlands, Spain, South Korea, Sweden and the UK. Starting in 2013, it leverages China's expertise in infrastructure projects, and ample foreign currency, to build new global trading routes. China once tried to check its population growth with the now defunct one-child policy. This recent increase in the incidence of sovereign debt restructurings of Chinese debt may have a benign interpretation, but given the slower growth and lower commodity prices of recent years, it may well be a sign of brewing liquidity and solvency problems in numerous developing countries. Now it's desperately trying to arrest a falling birthrate that means that as in many Western countries a shrinking young population will struggle to support a growing number of retirees. What is China's One Belt, One Road? Both reserve the right not to publish replies to articles should they so choose. Between 1971 and 1981, India's population . The two countries have stood side by side for many decades. While views of the U.S. and China have remained mostly stable over the past year, attitudes in some countries have shifted. Has Taiwan Always Been Part of China? - The Diplomat The two countries are sparring over the Scarborough Reef and the Spratly Islands. But prominent voices in China accused the West of using it as another excuse to "bad mouth" Beijing as the latest episode in the long-running struggle with the U.S. and its allies. The country is accused of leveraging massive loans it holds over small states worldwide to snatch assets and increase its . restructured and largely forgiven after the turn of the millennium, Our infographics team prepares current information in a clear and understandable format, Relevant facts covering media, economy, e-commerce, and FMCG topics, Use our newsletter overview to manage the topics that you have subscribed to. Read our research on: Congress | Economy | Trust in Media. The state broadcaster CCTV said China, which the World Bank credits with lifting almost 800 million people out of poverty in the past 40 years, was being slandered despite creating a miracle of sustainable and stable economic development with a huge population.. "Population does not equal national power," said Zhang Han, 29, a business student from the eastern province of Shandong. But the billion dollar project using loans and contractors from China became mired in controversy, and struggled to prove viable, leaving Sri Lanka saddled with growing debts. And this is all before the railway has even begun operations. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: According to World Bank data analyzed by Statista, countries heavily in debt to China are mostly located in Africa, but can also be found in Central Asia, Southeast Asia and the Pacific. Is climate change killing Australian wine? And their analysis found that 50% of Chinas loans to developing countries go unreported, which distorts the views of the official and private sectors in three material ways: 1) Official surveillance work is hampered when parts of a countrys debt are unknown. China has vastly outpaced all other countries in development financing, but the way in which Beijing has reached that level is "extraordinary", AidData says. The survey is weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan affiliation, education and other categories. All the countries in which China claims territory | The Week UK They want to eat and they want infrastructure. BEIJING Size isn't everything it's what you do with it that counts. Much of this money is linked to Chinese President Xi Jinping's ambitious Belt and Road strategy. If Chinas role in international finance continues in the shadows, global risk assessments and country surveillance work will remain dangerously incomplete. If a debt payment is missed, the Chinese lender can immediately withdraw the cash waiting in the account. China unveils plan to 'take over' Latin America - Restoring America On the streets of Beijing, the mood was similar. But officials in Beijing have in fact long been concerned that their nations porous borders with Myanmar are facilitating drug production and trafficking in all manner of contraband, as well as providing an outlet for illicit capital flows. A dozen of these countries owe debt of at least 20% of their nominal GDP to China (Djibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia, Niger, Laos, Zambia, Samoa, Vanuatu, and Mongolia). One example often cited by critics of China is Sri Lanka, which years ago embarked on a massive port project in Hambantota with Chinese investment. The West is making the same mistake with them as it did with the "Arab Spring". Over an 18-year period, China has granted or loaned money to 13,427 infrastructure projects . It says: "There is not a single country that has fallen into [a] so-called 'debt trap' as a result of borrowing from China.". A point to note about the Belt Road initiative by China is the debt trap it is leading nations into. China lent nearly . Once growing exponentially, China's aging population fell last year for the first time in six decades. China: Big spender or loan shark? - BBC News In about a third of the places surveyed, more educated people are also more likely to say that U.S. influence is getting weaker. Very good article. In June last year, Malaysia summoned Chinas ambassador after 16 military aircraft flew over disputed waters off its eastern state of Sarawak. Fears that China could launch an invasion of Taiwan have dominated headlines for months, fuelled by a series of incendiary interventions by senior officials in Beijing. Conversely, more people in Malaysia and Singapore hold favorable views of China than the U.S. Excellent analysis of the Biden administration's fiscal management principle: Squander the multiple trillions of borrowed money. A market in Chennai, India, on Wednesday. Simply copy the HTML code that is shown for the relevant statistic in order to integrate it. (Image source: U.S. Africa Command Public Relations). China's Global Network of Shipping Ports Reveal Beijing's Strategy - VOA As we have seen consistently in Pew Research Center surveys, people who place themselves on the right of the ideological spectrum tend to view the U.S. more favorably than those on the left. has called the level of debt many countries once again . BRI aims to build an economic and infrastructure network connecting China with Europe, Africa and beyond, and has already strengthened China's global influence from East Asia to Europe by making countries worldwide increasingly dependent on China. Views of Biden remain much more positive than views of Xi. Since 2010 well over $20bn of Chinese . Chinese state-owned lenders also typically require borrowers to maintain a minimum cash balance in an offshore account to which the lender has access. To find out more, please review our Privacy and Cookies Policy. Between 2007 and 2020, China invested $23 billion in infrastructure projects in Africa, according to the Center for Global Development, a US think tank. Just 24 percent of the countries' bilateral debt comes from the rest of the world that year. Taken together, young people in a few countries including Australia, Belgium, Canada, Sweden and the United Kingdom are both more positive toward China and less positive toward the U.S. than older adults. Chinese officials and state media said America and the West were focusing only on population size, rather than education, industrial output and economic clout the last one seeing China dwarf India several times over. The BBC reported at the time that, according to the Global Times, there had been several clashes between Inner Mongolians and residents of Gansu province in the area. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. This way nearly all adults have a chance of selection. Over the past two decades, China has become a major global lender, with outstanding claims now exceeding more than 5% of global GDP. In the U.S., we surveyed 3,581 U.S. adults from March 21 to 27, 2022. Africa's challenges, opportunities, and security interests are inseparable from our own," General Stephen Townsend, Commander of United States Africa Command recently said at a Senate Armed Services Committee hearing on March 15. This inaction means that in the emerging US-China rivalry in Africa, China is far ahead. A median of 66% across 19 countries say Chinas influence on the world stage is getting stronger, while just 32% say the same about the U.S. This has turned China into the worlds largest official creditor surpassing traditional, official lenders such as the World Bank, the IMF, or all OECD creditor governments combined. China Taking Over Africa: 'China's Second Continent' - Gatestone Institute Chinese Foreign Ministry spokesman Wang Wenbin stressed that it was important "to look at not just the size, but also the quality of its population.". All rights reserved. Port projects, economic endeavors, infrastructure and their agreements and contracts will lead to greater access in the future. 2) Private sectors will misprice debt contracts, such as sovereign bonds, if they fail to grasp the true scope of a governments debts a problem thats compounded by the collateral clauses in many Chinese official loans, meaning that China will get preferential treatment when it comes to repayments. Hopefully, China will continue to spend $ billions more in these regimes governments for investments that they will never be able to collect on. "The U.S. and Japan have smaller populations, but it doesnt mean theyre not strong powers. A 1962 border treaty split the islands according to which ethnic group wereliving on each island. The IMF and the WB do basically the same thing that the China CCP does as far as debt traps go. It has been suggested that Beijing has bought its silence over territorial issues, The Diplomat said, due to an influx of investment that coincided with the suppression of anything that might be deemed mildly critical of China. It will be very near impossible for the US or others to catch up on that, especially with the planned B3W initiative, because that initiative is not focused on much-needed tangible investments. The BBC is not responsible for the content of external sites. China was able to do so by lending those countries massive amounts of money they can never repay. Analysis of the port project by UK-based think tank Chatham House has questioned whether the "debt trap" narrative strictly applies, given that the deal was driven by local political motivations, and that China never took formal ownership of the port. Africa's challenges, opportunities, and security interests are inseparable from our own. Our competitors clearly see Africa's rich potential. Longer submissions are unlikely to be published. Trade between China and Africa has grown from $10 billion in 2000 to $190 billion by 2017. In 2000, trade between China and Africa had been at a mere $11 billion. China shares a contiguous border of 292 miles with Bhutan and territorial disputes have been a source of potential conflict. Eventually, if debtors are unable to service their debts, China takes over its collateral which is mostly in national assets. The clashes were the first to result in fatalities in the border area in at least 45 years. Recently it engaged in a flurry of diplomatic activity with African countries. They're not welcome in China though. Russia and China both seek to convert soft and hard power investments into political influence, strategic access, and military advantage. For some years, Beijing has been aggravating tensions by increasing the presence of China Coast Guard vessels in the contiguous zone of the Senkaku/Diaoyu Islands, The Diplomat said. How China Will Take Over The World - Forbes What China Is Really Up To In Africa - Forbes The Paris Club used to hold the majority of low-income countries debt before it was restructured and largely forgiven after the turn of the millennium for qualifying, developing countries. For instance, in Greece, 60% of those on the right have a favorable view of the U.S., compared with only 22% of those on the left. If China was to take over Taiwan, . Therefore, now both the countries are required to settle the disputes amicably because presently both the nations . The AidData researchers - who have spent four years tracing all of China's global lending and spending - say that Chinese government ministries are regularly going to them for information on how Chinese money is being used overseas. Editorial: editor@gatestoneinstitute.org. China has the power to take Taiwan, but it would cost an - CNN Despite a booming technology sector, the sheer size of India's population means it has been struggling to create enough jobs to keep up with demand. On the borrower side, debt is accumulating fast: For the 50 main developing country recipients, we estimate that the average stock of debt owed to China has increased from less than 1% of debtor country GDP in 2005 to more than 15% in 2017. While China has offered to negotiate, Philippines has said these territories are non-negotiable and have always been part of their country. When it comes to views of the U.S., the pattern is more varied. But there are no cases, among the hundreds of loan arrangements studied by AidData and some other researchers, of Chinese state-owned lenders actually seizing a major asset in the event of a loan default. All rights reserved. Whether such a process will be available for Chinese debt is unclear. In most countries, majorities have a favorable view of the U.S., while fewer than around a third tend to say the same of China. Video, 00:02:36What is China's One Belt, One Road? General Stephen Townsend, Commander of United States Africa Command, Senate Armed Services Committee, March 15, 2022. Not too long ago China received foreign aid, but now the tables have turned. In 19 countries surveyed by Pew Research Center this spring, people see the United States and President Joe Biden more favorably than China and its president, Xi Jinping. Maybe more importantly, our analysis reveals that 50% of Chinas loans to developing countries go unreported, meaning that these debt stocks do not appear in the gold standard data sources provided by the World Bank, the IMF, or credit-rating agencies. Video, On board the worlds last surviving turntable ferry. Atena Daemi, a popular 29-year-old women's rights activist and campaigner against the death penalty, was violently re-arrested by Iranian authorities on November 26, 2016. Chinas overseas lending boom is unique in comparison to capital outflows from the United States or Europe, which are largely privately driven. China does not publish records of its foreign loans, and the majority of its contracts contain non-disclosure clauses which prevent borrowers from revealing their contents. leaving Sri Lanka saddled with growing debts. current data from the United States and around the Vietnam maintains its territorial claim over regions of the South China Sea and the Macclesfield Bank, Paracel Islands and the Spratly Islands. Use is, however, only permitted with China faces territorial issues with 18 nations; check details The Statista "Chart of the Day" currently focuses US-China Economic and Security Review Commission, 2020 annual report to Congress. Only 2.2% of workers between the ages of 15 and 59 have received formal vocational training, according to government figures. As the new preferred lender to low-income countries, China held 37 percent of these nations' debt in 2020. . We also show that China tends to lend at market terms, meaning at interest rates that are close to those in private capital markets. At the time, experts said that if the dispute goes unresolved it could seriously damage relations between communities living along the two nations shared border. In another South China Sea dispute, China and Vietnam have long faced maritime territorial disputes over the Spratly Islands and the Paracel Islands, said the Carnegie Endowment for International Peace, a US-based think tank. It is estimated that 12 percent of Africa industrial production, or $500 billion annuallynearly. Takeover Trap: Why Imperialist China Is Invading Africa The last comparable surge in state-driven capital outflows was the U.S. lending to war-ravaged Europe in the aftermath of World War II, including programs such as the Marshall Plan. Despite that, there's little doubt China's economic involvement in Sri Lanka has grown in the past decade, and concerns persist that this could be used to advance its political ambitions in the region. And by comparison, the US is spending about $37bn in any given year to support global development activities," says Brad Parks. Assessing repayment burdens and financial risks requires detailed knowledge on all outstanding debt instruments. From 2020 to 2021, trade between Africa and China reportedly increased by 35% . Islands and reefs: ~75,400 km 2. But it has over recent years improved ties with China to counterbalance its long-standing relationship with India, its giant neighbour to the south.. As we mentioned in our previous post, the US has offered a latest estimate of Russian troops killed in Ukraine. Across most countries surveyed, more educated people are more likely to say Chinas power is growing. Between 2000 and 2017, other countries' debt owed to China soared ten-fold, from less than $500 billion to more than $5 trillion, according to the study from Germany-based think tank the Kiel . According to World Bank data analyzed by Statista. Here's a list of countries with which China has territorial disputes The initiative, however, comes across as far too little, too late. They don't need or want preachers to tell them how to behave, to explain democracy to them. China's growing role in international finance has remained obscure, mostly due to a lack of data and transparency. As China's economy becomes more integrated, these regional differences are taking . Contact: info@gatestoneinstitute.org But that is rejected by China, which accuses some in the West of promoting this narrative to tarnish its image. China has a depreciating GDP, a high level of unemployment, rising resentment towards the current government, and deteriorating relations with the US. How does China's lending compare with others? January 02, 2022 06:30 AM. (+1) 202-857-8562 | Fax Manila is facing a deadlock in a dispute it cannot resolve alone, the International Crisis Groupwarned. The Laos railway is far from the only risky project that Chinese state banks have funded - and yet, AidData says China remains the financier of first resort for many low and middle income countries. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022, Militrische Strke von Taiwan und China im Vergleich 2023, Bruttoinlandsprodukt (BIP) in China bis 2028, Staatsverschuldung von China in Relation zum Bruttoinlandsprodukt (BIP) bis 2028, Inflationsrate in China nach Monaten bis Mrz 2023. "The loan that China's Eximbank made to cover part of the equity really showcases the urgency of the Chinese state to push through the project," explains Wanjing Kelly Chen, research assistant professor at the Hong Kong University of Science and Technology. under the Creative Commons License CC BY-ND 3.0, may be used Election Integrity's Biggest Threat: Big Tech, The Biden Administration's Vacuum of Leadership, Thousands of Political Prisoners are Rotting in Turkish Jails. China has repeatedly demanded that Indonesia halt an oil and natural gas project in the region, Nikkei Asia said, claiming that the efforts to extract natural resources are an infringement on its territorial waters. Note: Gatestone appreciates your comments. Its loans to lower and middle-income countries have tripled over the past decade, reaching $170bn . How Much Money Does the World Owe China? - Harvard Business Review Why China Is Taking over Africa's Resources One Country at a Time The "New Silk Road" project, which finances the construction of port, rail and land infrastructure across the globe, has created much debt to China for participating countries. Please note that the code must be integrated into the HTML code (not only the text) for WordPress pages and other CMS sites. BRI aims to build an economic and infrastructure network connecting China with Europe, Africa and beyond, and has already strengthened China's global influence from East Asia to Europe by making countries worldwide increasingly dependent on China. In Malaysia, Singapore and Spain, the opposite is true. Almost all of this lending is official, coming from the government and state-controlled entities. The unreported lending from China has grown to more than $200 billion USD as of 2016. Then in the future I won't have to hear about how the white man is the source of the problems in Africa. However, Laos had to take out a $480m loan with a Chinese bank to fund its small part of the equity. After pursuing economic liberalization in the 1970s, its economy has mushroomed to become the second largest in the world behind the U.S., with a gross domestic product almost seven times that of India, which is placed fifth. China continues to deepen its engagement in Africa on all levels. The articles printed here do not necessarily reflect the views of the Editors or of Gatestone Institute. However, the plan might simply have come along too late. The hostility, which triggered an angry protest from Manila, was the latest flare-up in the South China Sea, with China claiming virtually the entire waterway and transforming seven disputed shoals into missile-protected island bases. As a result, private investors and other competing creditors may underestimate the risk of default on their claims. However, China's overall lending commitments are likely to be significantly greater than these figures suggest. For an optimal experience visit our site on another browser. "America cannot ignore Africa. The new imperialism. Our standard is 660 pixels, but you can customize how the statistic is displayed to suit your site by setting the width and the display size. John Richardson is a researcher based in the United States. This control threatens the ability of U.S. companies to access key supplies.". For decades, politicians wondered about building such a connection - linking landlocked south-west China directly to South East Asia. This gap in perceptions is largest in Australia, where more than three times as many say China's influence is growing than say the same about American influence (73% vs. 19%). And that's news even to Chinese officials themselves. . Feel free to contact us anytime using our contact form or visit our FAQ page. The Chinese Communist Party's Secret Projects in the US: What Is Going On? About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. Laos. To China, being the most populous nation "doesnt count for anything" in and of itself, he told NBC News in an email. However, attitudes vary widely within the Asia-Pacific region. "It really seems like kind of a bread-and-butter strategy they use to signal to their borrower that 'We're the big boss around here'," Brad Parks explains. Views of Xi, by comparison, have remained largely unchanged over the past year, though they continue to hover at or near historic lows in most places. And all the Germans remained obediently silent, accepting their truth. China and India are the world's population behemoths but their demographics are very different. "In an average year, China's international development finance commitments amount to about $85bn. One would think that by now the globalist fools of the World Economic Forum (not to mention our own government) would have realized the absolute folly of engaging with such a totalitarian regime devoted to world dominance. Laos has a 313-mile border with China that runs from the tripoint with Myanmar in the west to the tripoint with Vietnam in the east.
