Foreign development loans from Chinese banks plummet

Overseas development loans from China’s policy banks have fallen to their lowest level since 2016 as the country shifts to smaller projects, the South China Morning Post reported on Thursday.

The China Development Bank and the Export-Import Bank of China issued 28 new loans in 2020 and 2021 worth $10.5 billion, SCMP said, citing data from the University of China’s Global Development Policy Center, Boston.

By 2022, the China Development Bank provided 186.4 billion yuan, or $27.53 billion, in loans for water conservation projects, Xinhua News Agency reported separately.

“This trend is emblematic of the ‘small is beautiful’ approach to Chinese economic engagement in recent years, which prioritizes smaller, more targeted projects.”said SCMP, citing Rebecca Ray, senior academic researcher at Boston University.

This trend “emphasizes projects with a smaller geographic footprint and lower risks to sensitive ecosystems and indigenous communities,” the SCMP said, citing Ray.

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