China Debt Crisis as Belt & Road Initiative Loans Default & China Faces Economic Collapse - Joe Blogs

[TexasTowelie]

In 2013 China announced the BELT & ROAD INITIATIVE which was designed to provide new Land & Sea Connections from China to the Rest of the World. This Initiative was designed to help EMERGING & DEVELOPING COUNTRIES to improve ROAD, RAIL, AIR & SEA Infrastructure and to Build POWER PLANTS. China has advanced $1.3 TRILLION in Loans to HIGH RISK Countries and the majority of those loan are now in DEFAULT. In this video I provide details of the investments made by China, the outstanding loans by SECTOR & COUNTRY and the amount of debt now in DEFAULT.

Chapters:
0:00 Intro
1:44 BELT & ROAD INITIATIVE
2:28 SECTOR EXPOSURE
5:04 COUNTRY EXPOSURE
9:09 CREDIT RISK
12:04 DISTRESSED LOANS
14:38 DEBT RESTRUCTURING
16:14 CASHFLOW
18:33 RUSSIA
21:13 SUMMARY & CONCLUSION

[Irish_Dem]

1. Wow China has really screwed up.

Xi thought he was being so clever, loaning huge amounts of money, $billions to various countries and building large projects all over the world. He thought he would sit back and get back the loans with interest. And have a stake in the infrastructure across the globe. Chinese construction companies were raking in the dough. He would have a lot of power, influence and cash rolling in.

But then the economy tanked after Covid and the Russian invasion of Ukraine, and no one can pay back their loans to China. So China has to decide whether to write off these loans or throw more money at them. And the Chinese companies will be out of luck and out of jobs.

Meanwhile China's economy at home is tanking.

Poor Xi. He is not the financial and geopolitical genius he thinks he is.
No wonder he has to keep the focus on invading Taiwan.

[TexasTowelie]

2. There is a reason why Western countries did not get involved with making large infrastructure

projects in these countries. Considering the number of times that Argentina has defaulted on its debt, it makes absolutely no sense for Western economies to keep pouring good money after bad.

Obviously China will need t reevaluate the loans that were already made and the associated infrastructure projects. Some of the projects may be suitable for completion, but there are also many projects that should be discontinued.

Unfortunately, Xi is more concerned with building his power base than about meeting the needs of the people that he leads.

[Irish_Dem]

3. Exactly. The West was smarter and knew better than to make such risky moves.

Yes Xi will have to eat some of the bad debt, but he may go ahead with some of the projects.
The point is that he is in big financial trouble now.

Xi is not interested in the Chinese people except to the point he needs to keep them somewhat
satisfied so as not to rebel. You don't want to get on the bad side of 1.4 billion people.

Yes both Xi and Putin have a steadfast goal of becoming the sole global superpowers and to grind the west
into dust. That is all they care about. But like all fascist leaders they dreams are untempered with reality.
They are surrounded by yes men and get tunnel vision.

Just like the GOP in the US.