HONG KONG (Reuters) – The United States is the largest recipient of China's lending activity globally, according to a study that tracked Beijing's lending activity and found it is increasingly lending to higher-income countries rather than developing countries.
A report released Tuesday by William & Mary University's AidData Research Lab said China's lending and grants totaled $2.2 trillion from 2000 to 2023 in 200 countries across all regions of the world.
China has long been seen as a lender to developing countries through its Belt and Road Initiative, but it is now shifting toward lending to advanced economies, supporting strategic infrastructure and high-tech supply chains in areas such as semiconductor manufacturing. artificial intelligence and clean energy.
The size of Beijing's portfolio is two to four times larger than previous estimates suggested, AidData said, adding that China remains the world's largest official creditor.
When asked to comment on the report, China's Foreign Ministry said its overseas investments and financing “are in line with international practices, market principles and the principle of debt sustainability.”
CHINESE ENTERPRISES OPERATE IN THE USA
More than three-quarters of China's overseas lending operations now support projects and activities in upper-middle-income and high-income countries.
“Much of the lending to rich countries is focused on critical infrastructure, critical minerals and the acquisition of high-tech assets such as semiconductor companies,” said lead author Brad Parks, chief executive of AidData.
The report said the United States topped the list of official sector loans from China, receiving more than $200 billion for nearly 2,500 projects and activities.
Chinese state-owned enterprises are “active in every corner and sector of the United States,” financing construction of LNG projects in Texas and Louisiana, data centers in Northern Virginia, terminals at New York's JFK International Airport and Los Angeles International Airport, the Matterhorn Express natural gas pipeline and the Dakota Access oil pipeline, AidData said.
Beijing has financed the acquisition of high-tech companies, while Chinese state lenders have provided credit lines to many Fortune 500 companies, including Amazon, AT&T, Verizon, TeslaGeneral Motors, Ford, Boeing and Disneythe message says.
The share of lending to low- and lower-middle-income countries fell to 12% in 2023 from 88% in 2000. Beijing has also cut lending to infrastructure projects in the Global South as part of its Belt and Road Initiative.
