China ramping up bailout loans to 'Belt and Road' countries: report

China says more than 150 countries have signed up to the BRI, a trillion-dollar global infrastructure push unveiled by President Xi Jinping a decade ago

China has handed out $240 billion worth of bailout loans to 22 developing countries at risk of default over the past two decades, with the trend accelerating in recent years, a report said on March 28.

Almost all the funds went to Belt and Road Initiative (BRI) countries such as Sri Lanka, Pakistan and Turkey — mostly low- and middle-income nations that have received Chinese loans for infrastructure development, according to the study.

The 40-page report by the U.S.-based research lab AidData, the World Bank, the Harvard Kennedy School and the Kiel Institute for the World Economy showed bailout loans had accelerated between 2016 and 2021, with Beijing doling out 80% of its rescue lending in that period.

Around the world, BRI nations have come under strain as soaring inflation and interest rates, compounded by the lingering impact of the COVID-19 pandemic, have hurt their ability to repay debts.

The bailouts allow the countries to extend their loans and remain solvent, the report said.

China says more than 150 countries have signed up to the BRI, a trillion-dollar global infrastructure push unveiled by President Xi Jinping a decade ago.

Beijing says the initiative aims to deepen friendly trade relations with other nations, particularly in the developing world.