Chinese 'debt-trap' crippling poor economies, endangering US national security
FOX NewsJUL 2023
Report: China Becomes Top Debt Collector as Poor Nations Face $22B Bill
Above: Chinese President Xi Jinping with Brazil's President Luiz Inacio Lula da Silva (L) at the Great Hall of the People on May 13, 2025, in Beijing. Image copyright: Tingshu Wang/Pool/Getty Images News via Getty Images
The Spin
Anti-China narrative
China's lending practices are predatory debt-trap diplomacy designed to extract geopolitical concessions from vulnerable nations. The timing of massive loans to countries like Honduras and the Solomon Islands immediately after they switched recognition from Taiwan reveals Beijing's transactional approach to development finance. These unsustainable debt burdens are forcing countries to choose between servicing Chinese loans and funding basic services, such as health care and education, creating precisely the leverage China intended.
Pro-China narrative
China provided crucial financing when Western creditors refused to invest in developing nations, offering a more reliable partnership than inconsistent Western aid. Beijing's lending followed international practices and market principles, with multilateral institutions and Western commercial creditors representing the primary source of debt pressure for developing countries. The current narrative unfairly scapegoats China while ignoring how Western nations are cutting foreign aid and withdrawing support when these countries need help most.