In Pursuit of Development China’s evolving role in global development finance – Hong Bo
As globalization gives way to fragmentation, the politics of finance and development are shifting fast. Tariffs, trade wars, and geopolitical rivalries are redrawing economic maps, while traditional sources of aid are shrinking. In this environment, low- and middle-income countries are searching for new partners and new pathways to growth—and China’s role looms large.
Over the past two decades, China has financed and built roads, railways, power grids, and digital infrastructure across Africa, Asia, and Latin America. But since the pandemic, its overseas investments have evolved: fewer mega-projects, greater attention to debt risks, and a growing emphasis on clean energy, technology, and localized, value-added production.
In this episode, Dan Banik speaks with Hong Bo, Professor of Financial Economics at SOAS, University of London, about the changing nature of Chinese investment and what it reveals about the future of global development finance. They discuss how sovereign risk shapes investment decisions, why small and “green” projects are replacing large ones, and how African and other developing countries can strengthen their bargaining power in negotiations. The conversation also touches on the politics of transparency, the role of private Chinese investors, and the possibilities for industrialization in a world of shrinking aid and shifting alliances.
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