China now collects more in debt from borrowers in the developing world than it extends in loans

China’s role in developing countries’ finances has transformed from capital provider to chief debt collector as a “tidal wave” of repayments due on loans Beijing extended under its Belt and Road Initiative far outstrip new disbursements, a new report by an Australian think tank showed.

Under the Belt and Road Initiative (BRI), Beijing has disbursed over $1 trillion in loans to more than 150 countries to build a network of roads, airports, railways, telecommunication networks, and seaports to connect China to the rest of the world. Critics have accused China of setting up debt traps and expanding geopolitical and economic influence through BRI.

According to the report by the Lowy Institute, developing countries owe a record $35 billion in debt repayments to China in 2025, with debt servicing costs on projects financed by BRI – which Chinese President Xi Jinping launched with great fanfare in 2013 – set to remain elevated for the rest of the decade.

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