China becomes world's largest debt collector with over 25% of global debt

By the end of 2023, over 25% of the world's bilateral external debt was owed to China, making it the largest global debt collector. This marks a significant shift from two decades ago when China rarely lent money. China's external lending has surged, contributing to a rapid increase in external debt for many countries. In 2003, China's share of bilateral external debt was around 1%, but it rose to 26% by 2023. Countries like Pakistan and Laos owe substantial portions of their external debt to China, with some nations facing financial crises as a result. For example, Laos owes over 75% of its bilateral debt to China, while Angola owes about 58%.