Developing countries face record debt repayments to China in 2025

Many of the world's poorest countries are due to make record debt repayments to China in 2025. This is due to loans extended a decade ago during the peak of Beijing's Belt and Road Initiative (BRI). A report by the Lowy Institute highlights the financial strain on developing economies. Under the BRI, China lent billions for infrastructure projects. In 2025, developing countries owe China $35 billion. Of that amount, $22 billion is due from 75 of the world's poorest countries. This puts health and education spending at risk. While China denies creating debt traps, the report raises concerns about geopolitical leverage. Western analysts say China has been miring developing nations in debt.