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The Indicator from Planet Money

China's global lending binge

The Indicator from Planet Money

NPR

Business

4.79.2K Ratings

🗓️ 26 August 2022

⏱️ 10 minutes

🧾️ Download transcript

Summary

We learn about the Chinese government's global financing boom by zooming in on one country where controversy surrounding Chinese money is smoldering hot. We're going to the Pacific: The Solomon Islands.

Transcript

Click on a timestamp to play from that location

0:00.0

NPR.

0:11.7

Countries have always lent money to help out their friends.

0:15.4

Sometimes they'd lend to help out other countries for economic reasons, like what benefits

0:19.4

you benefits me.

0:21.4

Sometimes it's out of generosity and often it's full political influence.

0:26.1

And withers was the World Bank, the International Monetary Fund, European countries, or the

0:30.8

US itself.

0:32.5

One thing has been true since World War II.

0:35.5

Western democracies dominated international grants and lending.

0:39.2

But over the last decade, China has gone into the game in a big way.

0:43.8

It's now the number one lender to low and middle income countries.

0:47.9

China has built airports, power stations, dams and railroads, and caused a lot of backlash

0:53.4

while doing it.

0:54.4

And these concerns aren't just about the US being rivals of China or even straight-up

1:00.0

xenophobia.

1:01.0

Although there is plenty of that in the debates, there are real differences about the way

1:05.6

China lends money.

1:07.5

This is the indicator from planet money I'm Daryl N. Woods.

1:10.3

And I'm Whelan Wang.

1:11.3

Today on the show, we learn about the Chinese government's lending around the world by

1:15.6

zooming in on one country where all these issues of power and influence and controversy

1:21.6

are smoldering hot.

...

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