Follow CGSP on Social Media

Listen to the CGSP Podcast

Venezuela and the Chinese Debt Crisis in Africa

by Eric Olander

Even before the current economic crisis brought on by the COVID-19 pandemic there were widespread concerns about Chinese lending practices in Africa. The U.S. and other critics contend that Beijing is employing a predatory lending strategy where it intentionally loads up poor countries with unsustainable amounts of debt. When they invariably can’t repay those loans, China swoops in to seize assets.

While this so-called “debt trap” theory remains very popular, there’s simply no evidence to support the assertion according to scholars who’ve looked into thousands of Chinese loan deals around the world.

Lead the Conversation on China

Subscribe Today to Get Full Access to The China-Global South Project

Check Out Everything You'll Get With Your Subscription

The China-Global South Daily Brief delivered to your inbox at 6AM Washington time

Full access to exclusive news and analysis from editors based in the Global South

Transcripts of CGSP’s twice-weekly podcasts

Students and teachers with a valid .edu email address are eligible for a 50% discount off monthly or yearly subscriptions. Email us to receive a discount code.

You Might Like

Why China’s Cutting Back on Overseas Lending

It’s going to be much more difficult for countries in Africa and other developing regions to borrow money from China. New research from Boston University’s ...

The Plunge in China’s Overseas Lending

Getting a loan from one of China’s two largest policy banks is significantly more difficult than it was just a couple of years ...

New Report Debunks Chinese Debt Trap Narrative in Sri Lanka

The Chinese debt trap narrative was started based on the purported surrender of the Port of Hambantota in Sri Lanka. When Colombo fell ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.