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Bailing Out Debt Stressed Partners: China Saving its Own Enterprises

Writer's picture: CUHK Quant Trading SocietyCUHK Quant Trading Society



Key Takeaways:

  • China has reportedly spent $240 billion bailing out 22 developing countries between 2008 and 2021, with 80% of lending occurred between 2016 and 2021

  • China's Belt and Road Initiative (BRI) has also sparked controversy and criticism due to its potential risks, including debt distress, opaque bidding processes, and environmental impact

  • The BRI's geopolitical implications, such as China's growing influence, have also raised concerns and tension in the international community

  • Different nations have responded in various ways to the potential risks, with the US promoting a "Free and Open Indo-Pacific," the EU launching its own connectivity strategy, and Japan promoting its version of infrastructure development

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