China's Massive Loans Rescue Countries in Financial Distress

China has shifted its lending focus from infrastructure projects to providing emergency rescue loans to developing countries struggling with debt. The Belt and Road Initiative, which initially aimed to build transportation and political links, resulted in countries accumulating unsustainable debt. China's rescue loans now make up 58% of its lending to low- and middle-income countries, compared to 5% in 2013. The United States is seeking to match China's influence by providing loans for shipyard modernization in Greece and port expansion in Sri Lanka. China's lending practices have raised concerns about debt sustainability and competition with international financial institutions like the IMF.