China Rethinks Overseas Infrastructure Program

Sept. 27, 2022
Belt and Road initiative causing financial headaches at home

China's Belt and Road overseas infrastructure investment program is facing revamp as it incurs financial stress from bad loans and interest rate hikes, according to the Wall Street Journal. 

Belt and Road fostered infrastructure projects in Asia, Africa, and Latin America, whereby Chinese banks lend money to countries to build roads, dams, ports, and other projects. Nearly $1 trillion has been invested, according to the report.

According to the report, the percentage of overseas loans held by countries considered to be in financial distress has increased from 5 percent in 2010 to nearly 60 percent now. 

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