China's $1.34 Trillion Lending Pivot: Belt and Road to Rescue Finance
ROADS & HIGHWAYS

China's $1.34 Trillion Lending Pivot: Belt and Road to Rescue Finance

Over the past two decades, China has emerged as a major player in global infrastructure development by extending loans worth a staggering $1.34 trillion, with a shift in focus from the Belt and Road Initiative (BRI) to rescue finance, according to a recent report.

China's lending spree started in 2000 and continued until 2021. Initially, the country emphasized the Belt and Road Initiative, an ambitious scheme to enhance connectivity and economic cooperation across Asia, Africa, and Europe. Under this initiative, China provided significant funds to developing countries to build crucial infrastructure projects such as ports, roads, railways, and power plants.

However, as global economic conditions worsened due to the COVID-19 pandemic and its aftermath, China shifted its lending focus from the BRI to rescue finance. The report reveals that China has been extending substantial financial assistance to countries that are facing economic crises or struggling with debt burdens. This strategy aims to stabilize economies, promote regional stability, and enhance China's global influence.

With this pivot in focus, China aims to establish itself as a responsible and trustworthy economic partner. By offering support during times of distress, China is positioning itself as a reliable alternative to traditional international financial institutions such as the World Bank and the International Monetary Fund.

China's rescue finance initiatives have already gained traction in several countries. For instance, China extended significant loans to countries in Africa, Latin America, and Asia to help them combat the economic challenges posed by the pandemic. These loans are often accompanied by favorable terms and conditions, such as extended repayment periods or lower interest rates, compared to those offered by traditional lenders.

The shift in lending focus also has significant implications for China's domestic economy. As the country diverts resources towards rescue finance, there may be a slowdown in high-profile Belt and Road projects. This shift reflects China's attempt to strike a balance between pursuing its international ambitions and addressing immediate economic challenges.

In conclusion, China's lending focus has transitioned from the Belt and Road Initiative to rescue finance. With a staggering $1.34 trillion lent between 2000 and 2021, China aims to stabilize economies, promote regional stability, and strengthen its global standing. This shift also reflects the changing dynamics of the global economy and China's desire to be seen as a responsible economic partner.

Over the past two decades, China has emerged as a major player in global infrastructure development by extending loans worth a staggering $1.34 trillion, with a shift in focus from the Belt and Road Initiative (BRI) to rescue finance, according to a recent report. China's lending spree started in 2000 and continued until 2021. Initially, the country emphasized the Belt and Road Initiative, an ambitious scheme to enhance connectivity and economic cooperation across Asia, Africa, and Europe. Under this initiative, China provided significant funds to developing countries to build crucial infrastructure projects such as ports, roads, railways, and power plants. However, as global economic conditions worsened due to the COVID-19 pandemic and its aftermath, China shifted its lending focus from the BRI to rescue finance. The report reveals that China has been extending substantial financial assistance to countries that are facing economic crises or struggling with debt burdens. This strategy aims to stabilize economies, promote regional stability, and enhance China's global influence. With this pivot in focus, China aims to establish itself as a responsible and trustworthy economic partner. By offering support during times of distress, China is positioning itself as a reliable alternative to traditional international financial institutions such as the World Bank and the International Monetary Fund. China's rescue finance initiatives have already gained traction in several countries. For instance, China extended significant loans to countries in Africa, Latin America, and Asia to help them combat the economic challenges posed by the pandemic. These loans are often accompanied by favorable terms and conditions, such as extended repayment periods or lower interest rates, compared to those offered by traditional lenders. The shift in lending focus also has significant implications for China's domestic economy. As the country diverts resources towards rescue finance, there may be a slowdown in high-profile Belt and Road projects. This shift reflects China's attempt to strike a balance between pursuing its international ambitions and addressing immediate economic challenges. In conclusion, China's lending focus has transitioned from the Belt and Road Initiative to rescue finance. With a staggering $1.34 trillion lent between 2000 and 2021, China aims to stabilize economies, promote regional stability, and strengthen its global standing. This shift also reflects the changing dynamics of the global economy and China's desire to be seen as a responsible economic partner.

Next Story
Infrastructure Transport

RVNL secures Rs 1.65 billion railway bridge project from North Eastern Railway

Rail Vikas Nigam (RVNL) has received a Letter of Award (LoA) from North Eastern Railway for a Rs 1.65 billion railway infrastructure project, strengthening its order book and showcasing its expertise in complex railway construction.The project involves constructing the substructure of a major railway bridge over the Gandak River, located between Paniyahwa and Valmikinagar stations. This is part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section, aimed at improving line capacity and operational efficiency.The bridge will feature 14 spans of 61 metres each, built on double D-t..

Next Story
Infrastructure Transport

Raebareli’s Modern Coach Factory rolls out 15,000th railway coach

The Modern Coach Factory (MCF) at Raebareli in Uttar Pradesh has achieved a major manufacturing milestone with the rollout of its 15,000th railway coach on December 15, the Ministry of Railways said.In a press note, the ministry said that MCF has already produced 1,310 coaches in the current financial year 2025–26, reflecting sustained high output at one of Indian Railways’ most advanced passenger coach manufacturing units.Established in 2007 at Lalganj in Raebareli district, MCF was built at a cost of Rs 31.92 billion with an initial annual production capacity of 1,000 coaches. The factor..

Next Story
Infrastructure Transport

RailTel wins Rs 260.88 million IT infrastructure order from VOC Port

Navratna public sector undertaking RailTel Corporation of India has secured an IT infrastructure order worth Rs 260.88 million from V.O. Chidambaranar Port Authority (VOC Port), strengthening its presence in port-led digital transformation projects.According to an exchange filing dated December 16, 2025, RailTel has received a Letter of Acceptance (LoA) from VOC Port Authority for the implementation of advanced IT infrastructure at the port. The project is domestic in nature and is scheduled to be completed by August 15, 2026.The company said the order has been awarded in the normal course of ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App