China’s Overseas Lending
Sebastian Horn (IfW Kiel)

This lecture is part of our new lecture series China’s Economic Rise – Political Transformations in Asia and Beyond

Thursday, January 28, 2021, 1:00-2:00pm CET

ZOOM Link: https://uni-goettingen.zoom.us/j/92000859579

Abstract: Compared with China’s pre-eminent status in world trade, its role in global finance is poorly understood. This paper studies the size, characteristics, and determinants of China’s capital exports building a new database of 5000 loans and grants to 152 countries, 1949-2017. We find that 50% of China’s lending to developing countries is not reported to the IMF or World Bank. These “hidden debts” distort policy surveillance, risk pricing, and debt sustainability analyses. Since China’s overseas lending is almost entirely official (state-controlled), the standard “push” and “pull” drivers of private cross-border flows do not apply in the same way.

The lecture series is co-organized and co-sponsored by Göttingen’s Centre for Modern East Asian Studies as well the Kiel Institute China Initiative.

Picture: iStock.com/Maxiphoto