China is no longer a generous investor, but the most aggressive debt collector, including for poor countries that once relied on it.
Although Beijing has never spoken out loudly demanding debt, the latest report from the Lowy Institute reveals that China has long been quietly moving to reclaim its rights.
The institution's data shows that developing countries are expected to repay $35 billion in debt to China by 2025, while new loans from China are now shrinking.
This gives a clear picture that Beijing is now more focused on collecting debt than channeling new funds.
This situation is caused by a surge in loans under the Belt and Road mega-project that is now a burden on China's own economy.
In 54 countries, payments to China have exceeded debts to Western countries such as the Paris Club.
Beijing may seem quiet, but its steps are clearly having a big impact — spending on hospitals, schools and the climate for poor countries is now disrupted.
China is no longer a benefactor, but rather a “net burden” on the developing world.
In fact, there are concerns that this debt is being used as a geopolitical tool, especially after the US and its allies began to withdraw.
China has changed — more assertive, and no longer willing to be trampled on.
