"China aims to cut Belt and Road distressed debt exposure, report says" 7 November 2023

More than half of China's $1.1 trillion of loans to low- and middle-income countries have entered their principal repayment periods, a new study found, prompting a reboot by Beijing to reduce exposure to distressed debt.

The report published on Tuesday by AidData, a research lab at U.S. university William & Mary...

"Beijing is navigating an unfamiliar and uncomfortable role as the world's largest official debt collector," AidData said, adding that some 80% of the lending involved countries in financial distress...

Beijing has denied accusations that the BRI has created debt traps, instead hailing it as a driver for global development.

But in a move that suggests partial recognition of the problems, China said future BRI projects would be "small yet smart." They will be backed by loans on the "basis of market and business operation" to mitigate risks, and Beijing has promised to strengthen multilateral cooperation in areas including anti-graft, finance and taxation...

Faced with a daunting set of challenges, AidData said Beijing is now learning from mistakes and becoming "an increasingly adept international crisis manager."..