Top 10 Countries in Debt to China [2024]

China’s rapid economic ascent over the past few decades has propelled it to become one of the world’s largest lenders. Through strategic investments and loans, China has extended its financial influence to numerous countries across the globe. This article examines the top 10 countries in debt to China significantly. These countries face various economic challenges and dependency on Chinese loans, which have raised concerns about their long-term financial stability and potential implications on geopolitical dynamics.

List of the top 10 countries in debt to China

The list of the top 10 countries in debt to China in 2024 includes Pakistan, Djibouti, Sri Lanka, Maldives, Laos, Mongolia, Angola, Venezuela, Cambodia, and Kenya. Let’s delve deeper into the debt burdens of these countries owed to China.

Pakistan

Topping the list is Pakistan, which has accumulated substantial debt owed to China. IMF data shows that Chinese debt accounts for 23% of Pakistan’s total foreign debt. Under the China-Pakistan Economic Corridor (CPEC) initiative, China has invested heavily in infrastructure projects within Pakistan. China has pledged more than $65 billion for the BRI project since 2013. While these projects aim to boost Pakistan’s development, concerns have been raised regarding the country’s ability to repay its debt and the potential implications for its sovereignty.

Djibouti

Djibouti, a small East African nation, has witnessed a surge in Chinese investments, particularly in ports and infrastructure projects. Although these investments have provided a much-needed boost to Djibouti’s economy, concerns have been raised about the country’s increasing debt burden and its impact on Djibouti’s long-term financial stability.

Sri Lanka

Sri Lanka made international headlines with the Hambantota Port project, where it struggled to repay its debt to China and eventually had to hand over the port on a 99-year lease. This incident raised concerns about debt-trap diplomacy and the potential loss of sovereignty for countries heavily reliant on Chinese loans.

Maldives

The Maldives, an archipelago nation in the Indian Ocean, has also found itself heavily indebted to China. Chinese investments have been instrumental in developing infrastructure projects and boosting the Maldivian tourism industry. However, concerns persist about the country’s ability to manage its debt burden and maintain financial stability.

Laos

Laos has seen a significant increase in Chinese investments, primarily in hydropower projects and transportation infrastructure. While these projects have the potential to drive economic growth, Laos faces the challenge of balancing its debt obligations with sustainable development and environmental concerns.

Mongolia

Mongolia’s vast mineral resources have attracted Chinese investments in mining and infrastructure projects. However, the country’s heavy reliance on Chinese loans has raised concerns about its vulnerability to economic fluctuations and the potential loss of control over critical assets.

Angola

Angola, a resource-rich country in Africa, has been a major recipient of Chinese loans, primarily tied to infrastructure projects and the oil industry. As Angola grapples with economic challenges, its debt burden to China raises questions about the country’s ability to manage repayments and ensure long-term financial stability.

Venezuela

Venezuela, despite its ongoing economic and political crisis, has turned to China for financial assistance. Chinese loans have supported Venezuela’s oil industry and infrastructure development. However, the country’s mounting debt to China exacerbates its economic challenges and further complicates its path to recovery.

Cambodia

China has become Cambodia’s largest source of foreign investment, particularly in infrastructure and real estate projects. While these investments have contributed to Cambodia’s economic growth, concerns have been raised about the country’s rising debt and the potential implications on its sovereignty and strategic interests.

Kenya

Kenya’s pursuit of infrastructure development has led to substantial Chinese investments in projects such as railways and ports. These investments aim to enhance Kenya’s connectivity and economic growth. However, the country’s rising debt levels have raised concerns about its ability to manage repayments and maintain fiscal stability.

Summary of the top 10 countries in debt to China

The top 10 countries in debt to China in 2024 are

Pakistan
Djibouti
Sri Lanka
Maldives
Laos
Mongolia
Angola
Venezuela
Cambodia
Kenya

China’s increasing role as a global lender has left several nations heavily indebted and dependent on its financial support. The top 10 countries mentioned above face significant challenges in managing their debt burdens and ensuring long-term financial stability. While Chinese investments and loans have provided much-needed funding for infrastructure development and economic growth, there are concerns about the potential risks associated with such heavy reliance on Chinese debt.