Chinese Loans in Africa: Debt or Latent Aid?

China’s lending to developing countries often comes as part of massive financial packages for mega-projects.

Debt sustainability comes into question for both parties involved. Some critics warn of debt traps where China is jockeying for political influence and ownership, while other critics warn of a creditor trap where China will implode under the weight of unpaid loans.

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by Nicola Licata

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Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
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