(MENAFN- Live Mint) China has shifted its global financial priorities, with more than three-quarters of its overseas lending now supporting upper-middle-income and high-income countries. The United States is the largest single recipient of Chinese official credit, receiving over $200 billion across nearly 2,500 projects and activities spanning almost every state. These include investments in pipelines, logistics infrastructure, data centres, and corporate credit facilities.

Europe also a major beneficiary

European nations are similarly significant recipients of Beijing's lending:

EU (27 countries): $161 billion across nearly 1,800 projects

UK: $60 billion

Germany: $33.4 billion

France: $21.3 billion

Italy: $17.4 billion

Portugal: $11.7 billion

Netherlands: $11.6 billion

The report highlights that China's financial footprint is deeply embedded across Western economies.

China's lending much bigger than previously assumed

William & Mary's AidData research lab unveiled the findings on November 18, revealing that China has issued $2.2 trillion in aid and credit across 200 countries between 2000 and 2023. Compiled over 36 months using data collected by William & Mary students, the report-Chasing China: Learning to Play by Beijing's Global Lending Rules-spans more than 300 pages.

Brad Parks, AidData executive director and lead author, noted that China's total portfolio is“two-to-four times larger than previously published estimates suggest.” This marks the first AidData report to comprehensively map Beijing's lending in advanced economies, including the United States, the UK, Europe, Japan, and Australia.

From aid provider to geopolitical power player

The report finds Beijing has moved away from philanthropic, development-focused lending, with cross-border finance increasingly reflecting party-state priorities such as:

-National security

-Economic statecraft

-Global supply chain leverage

-High-tech sector dominance

Much of the lending to wealthy countries is directed at critical infrastructure, critical minerals, and high-tech assets, including semiconductor companies.

Implications for global security and competition

AidData warns that China's operations are becoming more opaque, often routed through shell companies in jurisdictions with strict secrecy rules. The findings have broad geoeconomic and national security implications, including:

-Vulnerability of strategic reserves

-Reliability of power grids and energy networks

-Control of maritime choke points

-Resilience of global supply chains

-Competition in high-tech industries

The report highlights that great-power rivalry is spilling over into the development finance sector.

Western entities still doing business with China

Despite geopolitical tensions, many Western banks, corporations, and financial institutions continue to collaborate with Chinese state-owned lenders. Major Western companies have borrowed heavily from Beijing-backed financiers.

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