China has become a big lender to poorer countries, and there's been criticism of its approach.
Analysis of the port project by UK-based think tank Chatham House, given that the deal was driven by local political motivations, and that China never took formal ownership of the port.
There are other parts of the world where Chinese lending has also proved controversial, with contracts whose terms could give China leverage over important assets. At around 4%, these loans are close to commercial market rates and about four times that of a typical loan from the World Bank or an individual country such as France or Germany.
"If a borrower fails to repay its debt," says Brad Parks, Executive Director of AidData, "China can simply debit funds from [this] account without having to collect on bad debt through a judicial process."There's currently an initiative by G20 nations - those countries which have the largest and fastest-growing economies - to offer debt relief for poorer countries to help them deal with the impact of the pandemic.
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