China is now directing most of its overseas lending to advanced economies, with the United States receiving the largest share, according to new research that tracks more than two decades of Beijing’s global credit activity. The findings mark a shift from China’s earlier focus on developing countries and underscore how its financial footprint has moved into high-tech sectors and strategic infrastructure in wealthier markets, Reuters reported on November 18.
The study, released on Tuesday by AidData at William & Mary, said China issued $2.2 trillion in loans and grants to 200 countries between 2000 and 2023. It added that Beijing’s total overseas portfolio is two to four times larger than earlier estimates, confirming China’s position as the world’s largest official creditor.
How this significant shift influences geopolitical and economic relationships remains an open question — but the scale and direction of the lending indicate that China’s global strategy is entering a new phase.
The research found a decisive turn in where this money is going. More than three-quarters of China’s lending now supports projects in upper-middle-income and high-income countries.
As mentioned above, the United States tops the list. It has received more than $200 billion across nearly 2,500 projects and activities. AidData said Chinese state-owned entities are present “in every corner and sector” of the American economy, backing energy infrastructure, transport hubs and corporate credit lines.These findings have surprised many, coming at a time when US-China acrimony is at its most bitter in a long, long time.Their financing has supported LNG projects in Texas and Louisiana, data centres in Northern Virginia, and expansion works at major airports in New York and Los Angeles. Pipelines such as the Matterhorn Express Natural Gas line and the Dakota Access Oil route have also benefited from Chinese funding.
Chinese institutions have additionally financed the acquisition of high-tech companies in the US. According to the report, state-owned creditors have extended credit facilities to several Fortune 500 firms, among them Amazon, AT&T, Verizon, Tesla, General Motors, Ford, Boeing and Disney.
Much of this activity, said lead author Brad Parks, is tied to “critical infrastructure, critical minerals and high-tech assets like semiconductor companies”.
The findings highlight how China’s lending profile has changed over time. In 2000, 88% of its overseas loans went to low- and lower-middle-income countries. By 2023, that share had fallen to 12%. The Belt and Road Initiative, once the main channel for funding infrastructure in the Global South, has seen reduced activity as Beijing limits exposure to countries facing debt distress.
At the same time, China has expanded its presence in richer markets. Its share of lending to middle-income and high-income countries rose from 24% in 2000 to 76% in 2023. The United Kingdom received $60 billion during the period tracked, while the European Union secured $161 billion.
AidData’s research suggests Beijing’s priorities now align more closely with sectors considered essential for economic competitiveness and technological advancement.
While China’s early overseas lending bolstered roads, ports and railways across developing regions, its recent focus appears geared towards securing supply chains and gaining footholds in industries central to future growth.
The shift may redefine long-standing assumptions about China’s role as a lender. Rather than primarily supporting emerging economies, Beijing is increasingly intertwined with the financial and industrial systems of advanced markets.
