China’s Loans to Developing Nations Reached a 13-year Low in 2021.

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According to a Boston University Global Development Policy Center research, Beijing’s reduction in funding for large-scale oil projects caused loans made by China’s two main trade policy banks to reach a 13-year low of $3.7 billion in 2021.

According to data from the World Bank, China is the largest bilateral lender globally. Before ramping up its reaction to the epidemic in 2020 when it stepped in with $67 billion, its greatest annual investment since 2008, the Washington-based lender supported projects in developing nations worth an average of $40 billion yearly between 2016 and 2019.

Almost $62 billion in commitments were made the following year, which is 17 times higher than Chinese financing. In total, China committed 83% of the $601 billion the World Bank lent from 2008 to 2021.

This month, Reuters reported that the World Bank was seeking to vastly expand its lending capacity to address climate change and other global crises and would negotiate with shareholders ahead of April meetings on proposals including a capital increase and new lending tools.

Reuters.

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