There's A Crisis That Is Quietly Creating New Economic Superpowers...

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How much money does the world owe China? | Counting the Cost
255,092 views•May 30, 2020

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Al Jazeera English
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China has been rapidly rolling out its Belt and Road Initiative to build new roads, ports and rail lines in mostly developing nations, extending the country's reach across continents.

China says the infrastructure will benefit countries while critics say China is extending unfair influence over others.

Many nations have been rethinking their involvement amid accusations that China has overpriced projects.

Between 2000 and 2017, the world's debt obligations to China rose from $500bn to a staggering $5 trillion - about six percent of the world's economic output - according to the Kiel Institute for the World Economy.

Researchers also found that China and its subsidiaries have lent $1.5 trillion directly to 150 nations - making China the world's biggest creditor, overtaking the IMF and World Bank. It has also made unreported loans worth $200bn.

We talk to Professor Christoph Trebesch from the Kiel Institute, who explains how China's opaque lending practices make it difficult for investors and international lenders to make accurate investment decisions.

The man behind a $1 trillion crash
On May 6, 2010, an unexplained glitch rattled the S&P 500 stock market index, temporarily wiping $1 trillion off its value.

In 2015, US authorities caught up with the man they blame for triggering the crash: Navinder Sarao, a day trader working out of his parents' West London home. Unknown to his family, he had amassed a $70m fortune.

We speak to financial journalist and author Liam Vaughan, who explains how Navinder Sarao's story may speak to deeper problems affecting high-frequency trading.

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1,604 Comments
Auggie Giuseppe
Add a public comment...
Garfield
Garfield
2 weeks ago
West : China loans is debt trap
Poors : what your suggestion?
West: we have IMF or worldbank !
Poors : just kill me bruhh

12


IncredibleTop10
IncredibleTop10
1 month ago
If you praise China , you will always get reply from Indian .. funny 😂

126


YouMustBeFibbing
YouMustBeFibbing
2 months ago
No matter how poor I'm sure every nation has competent lawyers and experts who can check and double-check contracts before signing. So no nation is forced into agreement with China. Also why not blame the US and the West for creating a Venezuela or Iran where reliance on China is their only choice.

93


Birdy Flying
Birdy Flying
2 months ago (edited)
Al Jazeera does not talk about the win - win deals China makes with country's by building hospitals, roads, habors and schools! IMF alway's comes with political demands and so called " democracy", witch means obedience to the west. Venezuela is crushed by sactions and the murdering petrol dollar who controles most trade, they can't buy food and medicine thanks to the yanks who think they own the world! Al Jazeera could bring some context!

60


C K
C K
2 months ago
Atleast they're giving loans. People should hold their own governments accountable if they're taking loans unnecessarily. What I see in these complaints against China is a jealous tantrum by Western nations

141


Luba Bosnjak
Luba Bosnjak
2 months ago
IMF loans easier to repay. This is laughable.

122


Global Reaction
Global Reaction
2 months ago
Is the guy being interviewed on a swing? Lol.

50


revolutionalist
revolutionalist
2 months ago
I think building infrastructure is a far superior plan than giving cash, corruption and bad governance hold countries back. Cutting through middle men means no one to corrupt

43


Michael Mallal
Michael Mallal
2 months ago
Don't trust investment advisors.

21


Mark Trinidad
Mark Trinidad
2 months ago
European countries have a half a century start to invest in Africa compared to China. But on those 50 years has Africa improved infrastructure wise? Now the west is ramping up their investments because China has been building infrastructure like highways, bridges connecting hinterlands and thus is quickly getting a fair share of soft power.

74


Graham O'Keeffe.
Graham O'Keeffe.
2 days ago
This is why china doesn't want an investigation into the wuhan virus as china will be found guilty of deliberately spreading the virus and destroying the world economy. Meaning those loans would become null and void.



T James
T James
2 months ago
Caveat Emptor. 
China realise that controlling finance is deadlier than bullets and bombs.

60


USA Patriot
USA Patriot
2 months ago
USA is like your high-school friend who owes money and refused to return.

64


Goya Solidar
Goya Solidar
2 months ago
If you owe the bank $5,000, the bank owns you. But if you owe the bank $5 trillion, you own the bank.

111


Richard Diano
Richard Diano
2 months ago
World bank and IMF structure is also predetory looking on its conditions to borrowers...enslaving the people of the country..

14


De Sitter Space
De Sitter Space
1 month ago
Looks like we’re even, maybe they might even owe us a little now!

14


Manu Datta
Manu Datta
1 month ago
Haha that is a joke. US govt printed 5 trillion USD just last month :).

45


C J
C J
1 month ago
No, my drink doesn't contain alcohol. That man being interviewed is definitely rocking.

2


ER
ER
1 day ago
Nonsense. These loans are long term - 20% and are very low or interest free. This is why it adds up to $5 Trillion and 138  countries have accepted it. As for Srilanka (Ceylen) they borrowed to make their own capital infrastructure improvements, based on their own cost estimates which turned out to be incorrect. So blaming the lender is incorrect.
All colonial powers of the past, British, French, Germans, Dutch, etc., robbed off the resources and only spent 1% of what they took out into building sea ports.