US Emerges as Biggest Beneficiary of China’s $2.2 Trillion Global Lending, Study Reveals

Despite years of Washington warning other nations about the risks of Chinese loans, a new study shows the United States has received the most financing from Beijing over the past two decades.

The report, released by AidData, a research lab at William & Mary University in Virginia, analysed China’s overseas lending between 2000 and 2023. Researchers found that government or majority state-owned Chinese entities extended $2.2 trillion in aid and credit across more than 200 countries during this period.

Contrary to widespread assumptions that Chinese financing predominantly targets developing nations, the study reveals that over three-quarters of China’s overseas loans support projects in upper-middle and high-income countries. Funds have been directed toward critical infrastructure, high-tech acquisitions, and essential minerals, often linked to China’s national security objectives.

“The US and its allies in the wealthy, industrialized world have allowed Chinese state-owned creditors to finance critical infrastructure assets within their own jurisdictions. They’ve allowed them to finance the acquisition of critical minerals. They’ve allowed Chinese companies to use loans to buy their technological crown jewels,” said Bradley Parks, executive director of AidData.

Over the past decade, Washington has repeatedly cautioned that Chinese loans could lead to predatory outcomes, including control over national assets if debts default. China, now the world’s largest official creditor, has faced criticism for allegedly saddling countries with unsustainable debt—a claim Beijing denies. Analysts continue to debate the so-called “debt-trap” narrative.

The study underscores that China’s lending strategy has evolved beyond developing nations, increasingly influencing economic and strategic assets in wealthier countries, including the US.