Home Exclusive news China bypassed the United States and became the world’s largest creditor of debtor countries

China bypassed the United States and became the world’s largest creditor of debtor countries

by marusia

China has surpassed the United States in the fight for the right to lend to debtor countries and has become the world’s largest creditor of developing countries.

This carries the risk of prolonged financial difficulties for the latter. Bloomberg wrote about this on March 28, citing the results of a study by World Bank economists.

As a source of financing for providing loans to developing countries, the Chinese authorities use substantial reserves of the local Central Bank. The size of the regulator’s monetary reserves for these tasks is estimated at $3.3 trillion, she notedГазета.ги “.

“A new global system of cross-border lending to countries experiencing debt distress has begun in the world, which competes with US-led structures operating since the 1940s. Over the past two decades, the People’s Bank of China has concluded swap agreements with 40 countries and trading blocs worth about $580 billion,” the article says.

At the beginning of June last year, Oleg Shibanov, director of the Skolkovo-Nes Center for Research on Financial Technologies and Digital Economy, said that the sale of all US government debt bonds to China would not lead to serious consequences.

On March 1 of the same year, American leader Joe Biden indicated his intention to defeat China in the economic race. The key to achieving excellence, the American leader considers an infrastructure program that should “change America.”

On April 18, Chinese Deputy Foreign Minister Le Yucheng announced the inevitability of economic competition between the United States and China. At the same time, China, unlike the United States, which seeks to aggravate the confrontation, is aimed at cooperation and settlement of relations, the diplomat stressed.

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