US paradox: China’s top lender.
The agency reported that Washington has been warning other countries for years not to trust loans from Chinese state-owned banks. But a new report shows that the United States has been the largest recipient of loans from China by far.
According to research by the American Institute of AidData, Chinese state lenders have injected $200 billion into American businesses over 25 years, with much of the loan hidden because the funds were received through shell companies in the Cayman Islands, Bermuda, Delaware, and elsewhere to hide their origin.
The report adds: More worryingly, a large part of these loans was allocated to help Chinese companies buy shares in American companies active in sensitive technology and security sectors, including robotics, semiconductors, and biotechnology companies.
The report shows that China lent more than $2 trillion worldwide from 2000 to 2023, double the highest previous estimates and surprising even veteran China analysts.
The bulk of the loans to rich countries were focused on vital minerals and high-tech items, such as rare earths and semiconductors needed for fighter jets, submarines, radar systems, precision-guided missiles, and telecommunications networks, the report said.