Developing countries face record $22 billion in debt repayments to China in 2025, primarily stemming from loans associated with the Belt and Road Initiative (BRI). This significant amount threatens crucial public spending on health and education. While new Chinese lending is slowing, some nations, particularly those switching diplomatic recognition to China or rich in critical minerals, are still receiving loans. The Lowy Institute report highlights the strain on developing economies, but other experts argue that debt to Western creditors is far greater, adding context to the situation. The report also raises concerns about potential Chinese geopolitical leverage.

Prepared by Christopher Adams and reviewed by editorial team.