Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331877 
Year of Publication: 
2025
Series/Report no.: 
Kiel Working Paper No. 2304
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
This paper provides a comprehensive overview of China's lending to developing countries - a central feature of today's international financial system. Building on our previous research and the work of others, we document the scale, destination, and terms of China's overseas lending boom, as well as the lending bust and defaults that have followed. We compare China's lending boom to past boom-bust cycles and discuss the implications of China's rise as an international creditor on recipient countries and sovereign debt markets. The evidence indicates that Chinese state banks are assertive and commercially sophisticated lenders. For recipient countries, however, the jury is still out: it remains to be seen whether the gains from China's lending - through growth and improved infrastructure - will outweigh the more immediate burdens of debt service or the multifaceted costs of default.
Subjects: 
China
sovereign debt
default
bailouts
official lending
JEL: 
E3
F34
F65
F68
N2
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.