[GLOBAL SOUTH] What's Driving the Steady Decline in Chinese Overseas Development Lending?
The China in Africa Podcast
China's Overseas Equity Investment Funds Are Taking a Backseat to Development Finance
China's supply of dollars was drying up and it just started redirecting those dollars towards priority projects. So we started prioritizing more directly in a more targeted way. Development finance lays the groundwork for direct investment, sometimes quite literally laying the roads of transportation infrastructure that private investment or direct investment needs to function. And then the third factor that I'll mention is simply that it's not as good of a time to borrow anymore, right? In those years, when China had these huge reserves with sitting on a mountain of US treasury bonds, earning essentially zero interest,. Why not lend those out? Great time to borrow interest rates were very low. Well, now the opposite is true. The US dollar
