Todays FT reports on a drop in China BRI lending – + does so with a little glee. The FT + the West do not want BRI to succeed. The FT says, without supporting evidence, that BRI faces mounting challenges but read more carefully. There are no challenges except for China’s need to keep its domestic economy positive which it has done.
It reports that in 2020, one half of China’s $4.6bn in overseas energy lending went to projects in Africa, a gas pipeline in Nigeria + other projects in Bangladesh, Serbia + Pakistan.
China’s two big state development banks – the China Development Bank + the Export-Import Bank of China have had to focus on the domestic economy. Additionally recipient countries have faltered on loan repayments.
Developing countries continue to want BRI + China was the only major economy to record positive growth in 2020.
“There will be a pause while the world economy recovers. But BRI, the flagship of China’s development, continues.”