China collects massive debt from developing countries

China has become the largest debt collector in the developing world, a shift that threatens to hinder poverty reduction and potentially destabilize nations. This is according to a new report from the Lowy Institute. Developing countries now owe billions to China, with over a quarter of their external debt held by Beijing as of 2023. The report highlights that these nations are expected to pay at least $35 billion to China this year alone. China's lending, particularly through its Belt and Road Initiative, has slowed, leading to a focus on debt collection. This shift, coupled with other economic pressures, could worsen development setbacks and increase instability in debtor countries.