During its lending spree, which peaked in the 2010s, China racked up more than $1 trillion in obligations under its flagship infrastructure program the Belt and Road Initiative and made headlines over big-ticket projects in low-income countries.
Critics have described the loans, some of which led to financial distress due to high repayment demands, as “debt-trap diplomacy” and a means for Chinese state entities to gain influence over critical infrastructure. Chinese officials have rejected the debt-trap narrative, insisting that overseas lending is based on mutually beneficial, market-driven principles.
