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Friendship over Friendshoring? Practical Opportunities for U.S.-China Coordination on Global Energy Transition

By Cecilia Springer U.S.-China competition could be bad news for the climate.  The geoeconomic fragmentation that is driven by U.S.-China decoupling will raise costs and potentially slow the global energy transition. At the same time, countries ...

China’s Central Bank Chief Signals Beijing Will Cooperate With Other International Creditors on Debt Relief

The head of China's central bank, Yi Gang, provided the clearest indication to date Beijing is willing to retreat from its demand that multilateral development banks (MDBs) also take write-downs on their loans to the world's poorest countries. Yi told participants at ...

First Signs of Progress on Debt at Spring Meetings, But Much Remains Unclear

There is cautious optimism at the World Bank and International Monetary Fund (IMF) spring meetings in Washington DC for progress on debt relief. Earlier this week, Reuters and other outlets reported that China could be willing to drop its demand that Multilateral Development Banks (MDBs) like the World Bank ...

IMF, World Bank Losing Patience With China Over Debt Relief Standoff

China's ongoing stand-off with multilateral lenders over debt relief terms for developing countries will be a prominent issue at International Monetary Fund and World Bank's annual week-long gathering known as the Spring Meetings that get underway on Monday in Washington, D.C. ...

China vs. the Multilateral Development Banks

There was a major breakthrough this week in China's months-long standoff with the World Bank, IMF and other multilateral creditors when Beijing agreed to fully back Sri Lanka's debt restructuring. The move now clears the way for Colombo to secure $2.9 ...

Analysis from Cobus van Staden

The G20 Summit and the Half-Life of a Joke

When it was announced in 2023 that the African Union would become a full member of the G20, I darkly joked on a podcast that the AU’s entry into the body could very well mark the moment the G20 lost its status as one of the most important global coordination forums. Mark my words, I said, soon The Economist will be like “Uhhh, the G20 is OVER – it’s the ...

History’s Solution to the China-U.S. Debt Standoff

By Kevin P. Gallagher History is repeating itself, but Western leaders are experiencing a selective memory loss that is preventing learning the lessons of that history.  If developing countries are to mobilize the necessary resources ...

IMF Head Flatly Rejects China’s Call for Multilateral Development Banks to Take Losses on Loans: “Not Possible”

International Monetary Fund Managing Director Kristalina Georgieva flatly rejected China's demand for multilateral development banks (MDBs) to accept losses or "haircuts" for loans to the world's poorest countries. "Not possible" she bluntly declared in an interview with Bloomberg following this weekend's ...

WEEK IN REVIEW: South Africa: Naval Drills | Ghana: Debt Crisis | DRC: Mining Contracts

Controversial joint naval exercises among South Africa, Russia, and China got underway this week off the coast of KwaZulu-Natal, prompting a fierce backlash from critics who blasted Pretoria for legitimizing Russia on the first anniversary of its invasion of Ukraine.

Sharply Contrasting Views on Whether China is Right to Demand Multilateral Development Banks to Take Losses on Their Loans

The dispute between China and Western lenders about how Multilateral Development Banks (MDBs) should take part in debt restructuring goes beyond current U.S.-China tensions. Rather, it relates to the fundamental question of how to fund development, rooted in much broader differences ...

India Thinks It Can Persuade China to Take Big Losses on Its Loans to Poor Countries

The Indian government, in its role as rotating head of the Group of 20, is drafting what will no doubt be a controversial proposal that calls on all major international creditors, namely China, to take large losses on its loans to poor countries.

China, World Bank Spar Over Who’s to Blame For Delays in Zambia Debt Relief

A major philosophical difference is emerging as a hold-up to Zambia’s much-needed debt relief. Foreign Ministry spokesperson Mao Ning recently said the key to easing Zambia’s debt burden “lies in the participation of multilateral financial institutions and commercial creditors in the debt-relief efforts.” ...

Why China Won’t Fill a Development Finance Gap for Gas

By Cecilia Springer and Rishikesh Ram Bhandary At the end of May, Group of Seven (G7) countries committed to end public finance for overseas fossil fuel activities, going beyond their earlier commitment from last year to end such finance for overseas coal ...