Beijing’s international lending that is notoriously know for its high interest rate along with easier access to cash flow, has been deemed to be amongst the major reasons for the rise of debt sustained by developing countries that are barely managing to stay afloat economically. Beijing’s growing presence in the international financial market is also visible through the fact that it has an outstanding claim of more than 5% of global GDP with almost all of the disbursement coming directly from the Chinese government and its state-controlled entities. This has also promoted it to become the largest bilateral creditor to the world with lending amounting to around $1.5 trillion through direct loans and credit lines to over and above 150 countries across the world. In the past two decades, China’s global economic clout has not only increased its contribution to the global economy, but has also caused global indebtedness to rise significantly, especially among the developing world, will China hold on its global influence ?
