Many countries are pretty deep in debt to China, as the country has been lending cash to many countries to help them build things like roads and power plants. Today, we’re looking at the countries that are most indebted to China. We’ll look at the numbers and figure out what it all really means.
Pakistan
This information comes from data from The World Bank. Pakistan is leading the pack with a whopping $26.6 billion debt to China. A big chunk of this debt comes from big projects like the China-Pakistan Economic Corridor, which is improving the nation’s connectivity and making life smoother with new roads and rails.
Angola
Angola comes in second and owes China roughly $21 billion. Most of this cash has gone into giving the country much-needed improvements after years of civil strife, including creating shiny new roads and rebuilding cities. Chinese loans have been quite important for Angola, but the bill is also pretty big, too.
Sri Lanka
Sri Lanka owes China $8.9 billion, and a big part of that tab came from developing the Hambantota Port. When construction started, it was meant to help the country out a lot, but when the bills started piling up, Sri Lanka had to hand over the port’s control to China. Was this huge debt even worth it?
Ethiopia
Ethiopia has a $6.8 billion tab with China, and it’s been on a major building spree. It has built dams and highways to make the country a better place to live and work, but these projects don’t come cheaply. Ethiopia hopes these investments will pay off big time in the future, especially since the nation has defaulted on previous loan payments.
Kenya
Kenya owes China about $6.7 billion, thanks largely to the Standard Gauge Railway. Although this mega project connected cities and improved trade, it has also left a hefty dent in Kenya’s wallet. Now, the country has to manage this debt somehow while keeping the trains running on time.
Bangladesh
Bangladesh has borrowed $6.1 billion from China and has invested heavily in infrastructure to keep up with its growing economy. This includes some big-ticket items like bridges and power plants, which are essential for keeping the lights on and the economy buzzing. Hopefully, this huge debt will be worth it.
Zambia
Zambia also owes China $6.1 billion. A lot of that has gone into mining and farming, which are two big pillars of its economy. The idea was to pump money into these sectors to grow the economy, but now Zambia has to figure out how to dig itself out of this financial hole. With investments in copper mining and agriculture, Zambia is hoping for a big economic boost.
Laos
Laos’s debt to China is about $5.3 billion, thanks in large part to the China-Laos railway project. This project is part of a bigger plan to link China to Southeast Asia by rail. This could massively improve trade and tourism, which would be a huge help to Laos’s economy. Unfortunately, building this dream isn’t cheap.
Egypt
Egypt owes China $5.2 billion, and it has invested most of this money in energy and transport, including the creation of dams and new roads. The country is aiming to ease congestion and boost power supplies, but with great power comes great responsibility. And, of course, great debt. As important as they are, these projects also mean Egypt has some serious repayments to handle.
Nigeria
Nigeria’s debt to China stands at $4.3 billion. This cash has helped the nation build transport connections to make it easier for people and goods to move around. With plans to modernize its transport network, Nigeria is looking to improve trade and connectivity across the continent. The country needs to make sure that the investments lead to sustainable growth and don’t just add to the debt pile.
Ecuador
Ecuador’s $4.1 billion debt to China is unique because it’s backed by oil sales. This means Ecuador can secure funds without reducing its cash reserve, although it later decided to restructure its debt. If it wants to succeed, then the country needs to manage its resources and debt responsibly.
Cambodia
Cambodia’s debt to China is around $4 billion, which it has used to build up both urban and rural areas. These projects include new roads and bridges to improve the country’s infrastructure and economy. Unfortunately, it now has to make sure these investments have long-term benefits without relying too much on Chinese funding.
Côte d’Ivoire
With a $3.9 billion debt to China, Côte d’Ivoire is in deep. They’ve spent a lot on transportation and healthcare to build a better tomorrow, with the goal of making smoother roads and bigger hospitals to improve the economy. Now, the difficult part is handling this debt to make sure today’s big spending turns into actual success.
Belarus
Like Côte d’Ivoire, Belarus owes $3.9 billion to China, and it’s pouring this cash into improving industry across the country. The plan is to ramp up productivity and pull in more investors by making the country more financially appealing. Unfortunately, juggling growth and debt repayments will require some serious management skills.
Cameroon
The biggest goal for Cameroon is to improve everyone’s living standards, which is why they have a debt of around $3.8 billion to China. They’re trying to improve healthcare and other important infrastructures so that Cameroon can stand on its own two feet. The challenge is making sure this pile of cash keeps working for them down the road.
Brazil
Brazil has racked up a $3.4 billion debt with China, all to dig deeper into its natural resources. The country has channeled most of its funds into mining and energy projects to cash in on what’s buried beneath. This way, they can turn raw resources into real riches, although the nation needs to watch out for the consequences on both the environment and the economy.
Republic of the Congo
The Republic of the Congo owes China a hefty $3.4 billion, mostly to speed up its transport and energy sectors. The idea is that if they can make it easier for everyone to get around and keep the lights on, then the economy will grow strong. Now, they need to balance this debt and make sure it pays off for the people.
South Africa
In South Africa, the $3.4 billion loan from China comes from investing in infrastructure projects to get the economy moving. The aim is to improve South Africa’s ranking as an economic power in the global market. If they want to succeed, they’ll need to make sure those investments really pay off.
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