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China’s Africa Lending Enters a New Phase as Mega-Loans Give Way to Targeted Finance and Investment

Chinese development finance in Africa is moving away from its traditional model of large sovereign loans for mega-infrastructure projects. Boston University's latest data shows Beijing increasingly channeling support through alternative mechanisms, including foreign direct investment, equipment trade, and financing arrangements with ...

With CGSP Staff

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How China Really Secures Its Loans to Developing Countries

The "debt trap" meme claims that China is intentionally lending vast sums of money to poor developing countries in Africa, and elsewhere, with the express intent to seize physical assets in those countries when they inevitably can't repay their debts.
How China Is Wooing Paraguay’s Political Class Away From Longtime Ally Taiwan
An electric bus donated by the Taiwanese government drives through a neighbourhood in Asuncion, Paraguay, March 3, 2026. REUTERS/Cesar Olmedo
By Daniela Desantis and Lucinda Elliott When Paraguayan opposition lawmaker Leidy Galeano returned from an all-expenses-paid tour of six Chinese cities late last year, she was convinced Paraguay risked missing out on major economic gains by sticking with longtime ally Taiwan over Beijing - a message participants on ...

China’s Africa Lending Enters a New Phase as Mega-Loans Give Way to Targeted Finance and Investment

Chinese development finance in Africa is moving away from its traditional model of large sovereign loans for mega-infrastructure projects. Boston University's latest data shows Beijing increasingly channeling support through alternative mechanisms, including foreign direct investment, equipment trade, and financing arrangements with ...

How China Really Secures Its Loans to Developing Countries

The "debt trap" meme claims that China is intentionally lending vast sums of money to poor developing countries in Africa, and elsewhere, with the express intent to seize physical assets in those countries when they inevitably can't repay their debts.
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