
Chinese and U.S. flags flutter outside the building of an American company in Beijing, China
| Photo Credit: TINGSHU WANG
China lent more than $2 trillion in loans and grants to over 80% of countries and regions in the world between 2000 and 2023. The U.S. was the biggest beneficiary, according to data released by AidData, a research institute at the College of William and Mary in Williamsburg, Virginia.
Over the years, Chinese state-owned entities have lent about $200 billion for nearly 2,500 projects and initiatives — more than 9% of the total amount lent by China — to American companies. Over 95% of this amount was lent by Chinese state-owned banks, enterprises, and the central bank, while the rest was lent by non-state players.
The below map shows the amounts lent by China to various countries between 2000 and 2023. Across the world, during that period, 179 out of 217 countries and territories received at least one loan from a Chinese state-owned creditor. China was the world’s largest creditor and debt collector in 2023, lending $140 billion to various countries.
Entities in Russia and Australia were the second and the third biggest beneficiaries in the last two decades, receiving $172 billion and $130 billion, respectively, in the period. Firms in the 27 member states of the European Union received $161 billion for 1,800 projects and activities.
The below chart shows the 20 countries that received the highest loan commitments between 2000 and 2023, along with the income bracket under which they fall. Of the countries shown in the chart, six are considered “high-income” countries, which together received more than 20% of the total amount lent by China in the period. About $943 billion was lent to high-income countries overall.
Beijing is moving away from its role as an aid provider to relatively poorer nations, as its focus has shifted towards commercial lending for developed countries. For instance, more than 75% of Chinese loan transactions with U.S. companies were “commercial” in nature, while only about 7% were for “developmental” intents, as per the data. China had lent about $320 million to the U.S. in 2000; this surged to about $19 billion in 2023, which hints at the “commercial” turn the investments took.
China’s initial focus was on infrastructural development projects in economically disadvantaged nations. Chinese President Xi Jinping launched the Belt and Road Initiative (BRI) in 2013, which helped develop energy, infrastructure, and connectivity projects in Europe and Asia. The Aiddata report details how China has scaled back on its lending to such projects; where BRI once made up 75% of China’s lending operations, it now makes up about 25%.
The below chart shows the share of high-income and low-income countries in China’s portfolio. The report finds that in a typical year, China spent about $5.7 billion on what can be classified as aid for official development assistance. However, in 2023, China’s global official development assistance commitments fell to $1.9 billion.
According to the report, China has an 80% success rate for getting overseas mergers and acquisitions approved. This is because of the relatively weak screening mechanisms for foreign capital inflow in most countries that China invested in. The report also alleges that China managed this by channelling funds through off-shore shell companies and international bank syndicates.
As of 2023, Indian entities have borrowed or were granted $11.1 billion from China, with a large amount of this dedicated to the energy sector and banking and financial services. Most of the funds were borrowed with a mix of commercial and developmental intent.
The data for the charts were sourced from a report titled ‘Chasing China: Learning to play by Beijing’s lending rules’ by AidData.
Published – November 28, 2025 07:00 am IST