Pacific nations struggle with debt repayments to China

China is the largest creditor to developing nations, with these countries owing Beijing at least $54 billion this year in debt repayments. This surge in payments is causing financial strain. The Lowy Institute's research highlights that many developing nations, including those in the Pacific, are struggling with these repayments. China's infrastructure investments, made under the Belt and Road Initiative, are now leading to a "crunch period" as grace periods expire. The situation is worsened by China's past deferral of debt repayments during the pandemic. Australia is providing financial support to some Pacific nations, while China faces pressure to recover its loans, potentially leading to economic instability.