How much money does the world owe China?

[beijingwalker]

How much money does the world owe China?
China loans more money to the world than the richest 32 nations. Plus, the man behind a $1 trillion stock market crash.
30 May 2020 16:00 GMT

China has been rapidly rolling out its Belt and Road Initiative to build new roads, ports and rail lines in mostly developing nations, extending the country's reach across continents.

China says the infrastructure will benefit countries while critics say China is extending unfair influence over others.

Many nations have been rethinking their involvement amid accusations that China has overpriced projects.

Between 2000 and 2017, the world's debt obligations to China rose from $500bn to a staggering $5 trillion - about six percent of the world's economic output - according to the Kiel Institute for the World Economy.

Researchers also found that China and its subsidiaries have lent $1.5 trillion directly to 150 nations - making China the world's biggest creditor, overtaking the IMF and World Bank. It has also made unreported loans worth $200bn.

https://www.aljazeera.com/programme...05/money-world-owe-china-200530080200892.html

 

[vi-va]

This is a misleading article.
The world owe money to China, while China owe money to many institutes and countries as well. There are 100+ billions of FDI flow into China, this is also a kind of debt, a good debt though.

The data which can reflect the reality is NIIP. Most money goes into US directly or indirectly. US is the biggest debtor. And US debt will default in next 10-15 years.
https://en.wikipedia.org/wiki/Net_international_investment_position

https://www.bea.gov/data/intl-trade-investment/international-investment-position

https://ec.europa.eu/eurostat/databrowser/view/tipsii40/default/map?lang=en

 

[Ahmad Bhutta]

This is a misleading article.
The world owe money to China, while China owe money to many institutes and countries as well. There are 100+ billions of FDI flow into China, this is also a kind of debt, a good debt though.

The data which can reflect the reality is NIIP. Most money goes into US directly or indirectly. US is the biggest debtor. And US debt will default in next 10-15 years.
https://en.wikipedia.org/wiki/Net_international_investment_position

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Fdi is a debt? :O

 

[vi-va]

Fdi is a debt? :O

FDI is a liability as well as asset.

Any money flow will be reflected asset and liability on the balance sheet.
A T-bill is a debt of US, and a asset of China.
A FDI flow into China is a debt of China, as well as asset in China. The difference of FDI is, it create revenue, tax, and jobs. the asset in China will be depreciated over the years, but the debt will be paid with interests (which is margin)

This is finance 101.

 

[Globenim]

Has Aljazeera completely sold out to America or been taken over by Indian guest workers? The quality of their articles has hit rock bottom.

 

[vi-va]

Has Aljazeera completely sold out to America or been taken over by Indian guest workers? The quality of their articles has hit rock bottom.

It's western media from day one. UK or US I am not so sure, maybe joint venture.

 

[hualushui]

Who owes the most money to the Chinese?
United States

 

[Jackdaws]

Yes. Well, learn to write it off as bad debts.