By Liu Xiaoge, Shi Shujie, Hou Yongzhi & Liu Yunzhong, Department of Development Strategy and Regional Economy, DRC

Research Report, Special Issue, No.112, 2019 (Total 1740)  2019-11-18

Abstract: Among the countries along the Belt and Road (BR) routes, some countries have a large amount of foreign debts and are facing problems such as poor economic operation, weak governance capacity and inappropriate external economic environment, all leading to an improper ability to repay loans to China. Besides, in recent years, the debt volume of some countries along the BR routes to China has increased, and some countries’ debt dependence on China has increased. To ensure the safety of China’s overseas funds and steadily push forward the advance of Belt and Road Initiative, it is necessary for us to have an overall picture of the debt aggregate of the countries along the BR routes, and pay special attention to the two types of countries, namely some with a large amount of debt and some with a high debt dependence on China. We need to analyze and evaluate the degree of potential debt risks from multiple perspectives, take into account the different situations of the money borrowing countries and the main investment channel of the borrowed money, adopt multiple policies, and classify and implement related policies to prevent the possible debt risks of the countries along BR routes. At the same time, we need to strengthen the debt risk early-warning mechanism and find out relevant clues in good time in relevant countries and regions that may face inevitable troubles or crises.

Key words: the advance of the Belt and Road Initiative, money borrowed from China, foreign debt risks