China may have created a trap for itself with African lending

Enormous Chinese language lending to Africa has created a dilemma the place China will battle to recoup its cash whereas sustaining its picture as a buddy to creating nations, researchers at Chatham Home mentioned.

Africa’s exterior debt rose fivefold to $696 billion between 2000 and 2020, with Chinese language lenders accounting for 12% of that, in accordance with a brand new report by the London-based suppose tank.

Whereas Chinese language lending to Africa has been criticized by the U.S. and different Western nations as opaque and designed to grab African property supplied as collateral, the researchers mentioned this isn’t the case.