Chinese loans, particularly those made under the Belt and Road Initiative, have raised concerns among leaders in financially struggling nations.
Since the initiative's launch in the 2010s, China has invested hundreds of billions of dollars in infrastructure projects across approximately 150 countries, including the construction of pipelines, ports, and railways.
However, there are concerns that these investments may come with hidden costs, potentially burdening these nations with unsustainable debt levels. Critics, including officials from emerging markets and Western policymakers, warn that such debt could lead to defaults, allowing China to seize critical assets and gain significant control over trade routes, thereby expanding its geopolitical influence.