INSUBCONTINENT EXCLUSIVE:
the past decade, mainly for bridges, ports, and highways in low and middle-income countries.This approach draws parallels to the United
contracts to its state-owned enterprises.This often leads to unclear construction costs, making future renegotiations challenging for
(Photo Internet reproduction)As China continues investing in new projects, nations are starting to repay their decade-old loans.A report by
AidData shows that 80% of these loans are to financially struggling countries
a noted increase in delayed payments.AidData found that 1,693 BRI projects are at risk, with 94 canceled or suspended.Over half of BRI loans
have entered their principal repayment period, coinciding with rising global interest rates
This increases the repayment burden on debtor nations.In some cases, China has significantly raised interest rates for delayed payments,
World Bank reported that China had to offer bailout loans to BRI countries.AidData suggests China is adopting a new strategy to avoid
This includes bailout loans to support the finances of governments and central banks.In competition with the United States and Europe,
China spends about $80 billion annually on these loans.The United States spends about $60 billion annually on similar development
financing, largely through its International Development Finance Corporation (DFC).An example of United States financing is the
Deals worth nearly 70 billion euros were signed across Europe, Asia, and Africa.EU Commission President Ursula von der Leyen stated that the
levels, it spent84 billion more than China in 2021.AidData warns the United States and allies against trying to compete with the BRI as
Beijing shifts focus from construction to debt collection.However, the failure of many BRI projects offers a chance to attract countries
like Sri Lanka back to Western influence.
