Latest news with #BeltAndRoad
South China Morning Post
2 days ago
- Business
- South China Morning Post
Asean-GCC-China partnership can kick-start shift away from US-centric trade
When the leaders of Asean, the Gulf Cooperation Council (GCC) and China gathered for an inaugural summit in Kuala Lumpur last week, it marked a historic convergence – the three economic powerhouses represent over 2 billion people and a combined economy of nearly US$25 trillion. Advertisement Emphasising deeper cooperation in trade, supply chains, infrastructure and finance, the summit's key areas of focus included green energy, the digital transformation, connectivity and sustainable agriculture to address climate change and food security. This trilateral partnership aligns with China's Belt and Road Initiative , leveraging the consumer markets of the Association of Southeast Asian Nations, the GCC's energy wealth and China's manufacturing and technological prowess. With Asean-China trade worth US$1 trillion and GCC-China trade of over US$288 billion last year, the summit underscored a collective ambition to foster regional stability and economic globalisation, with vast potential for trade expansion. It is also a transformative opportunity to reduce their reliance on the US market by diversifying supply chains and focusing on complementary strengths, enhanced connectivity, trade agreements and regional production in critical sectors. First, Asean's resources, the GCC's financial clout and China's manufacturing dominance constitute complementary strengths that can forge a robust supply chain ecosystem. Raw materials such as Indonesia's nickel and Malaysia's palm oil complement China's manufacturing capacity, while the GCC's sovereign wealth funds, worth a collective US$5 trillion, can finance critical projects. Advertisement Cooperation has begun. In April, the Qatar Investment Authority and sovereign wealth fund Danantara Indonesia announced a joint US$4 billion fund to invest in renewable energy, healthcare and technology in Indonesia. A practical model could see Asean supplying raw materials for China's electric vehicle battery production with GCC funding.
South China Morning Post
26-05-2025
- Business
- South China Morning Post
Time for China's belt and road partners to pony up as debt comes due, think tank finds
China has become the leading debt collector of developing countries, shifting from a net capital provider, 'as bills coming due from its belt and road lending surge in the 2010s now far outstrip new loan disbursements', according to new research. Advertisement In 2025, about 75 of the world's poorest and most vulnerable countries will make 'record high debt repayments' totalling US$22 billion to China, according to research released on Monday by an Australian think tank, the Lowy Institute, as a result of peaks in new loan commitments made from 2012 to 2018. The author, Riley Duke, said China was grappling with a dilemma. 'It faces growing diplomatic pressure to restructure unsustainable debt, and mounting domestic pressure to recover outstanding debts, particularly from its quasi-commercial institutions,' his report said. 'But a retrenchment in Western aid and trade is compounding difficulties for developing countries while squandering any geopolitical advantage for the West.' Duke explained that the research was being published now because China's belt and road lending spree peaked in the mid-2010s, and those grace periods began expiring in the early 2020s – a likely 'crunch period' for developing-country repayments to China. How China's shift to chief debt collector will impact its reputation as a development partner … remains to be seen Riley Duke, Lowy Institute In 54 of 120 developing countries with available data, debt-service payments to China now exceed the combined repayments owed to the Paris Club – a bloc that includes all major Western bilateral lenders.
South China Morning Post
26-05-2025
- Business
- South China Morning Post
Time for China's belt and road partners to pony up as debt comes due, think tank finds
China has become the leading debt collector of developing countries, shifting from a net capital provider, 'as bills coming due from its belt and road lending surge in the 2010s now far outstrip new loan disbursements', according to new research. In 2025, about 75 of the world's poorest and most vulnerable countries will make 'record high debt repayments' totalling US$22 billion to China, according to research released on Monday by an Australian think tank, the Lowy Institute, as a result of peaks in new loan commitments made from 2012 to 2018. The author, Riley Duke, said China was grappling with a dilemma. 'It faces growing diplomatic pressure to restructure unsustainable debt, and mounting domestic pressure to recover outstanding debts, particularly from its quasi-commercial institutions,' his report said. 'But a retrenchment in Western aid and trade is compounding difficulties for developing countries while squandering any geopolitical advantage for the West.' Duke explained that the research was being published now because China's belt and road lending spree peaked in the mid-2010s, and those grace periods began expiring in the early 2020s – a likely 'crunch period' for developing-country repayments to China. How China's shift to chief debt collector will impact its reputation as a development partner … remains to be seen Riley Duke, Lowy Institute In 54 of 120 developing countries with available data, debt-service payments to China now exceed the combined repayments owed to the Paris Club – a bloc that includes all major Western bilateral lenders.
