List of Countries with the Highest Debt to China

Countries heavily indebted to China are largely located in Africa, with some also in Central Asia, Southeast Asia, and the Pacific.

According to Statista, the countries with the largest debt burdens are Djibouti and Angola, followed by the Maldives and Laos, which is undertaking a high-speed rail project. Djibouti's debt to China is approximately 43% of its gross national income. Meanwhile, the Maldives and Laos' debt is in the 30% range; specifically, the Maldives has a debt of 38% and Laos 31% to China.

In 2020, China had officially lent approximately US$170 billion to low- and middle-income countries, up from around $40 billion in 2010.

Chinese loans have higher interest rates than loans from international institutions such as the International Monetary Fund or the World Bank, or bilateral loans from Paris Club countries, and also have shorter repayment periods. Their arrangements are closer to commercial loans regarding payment conditions, confidentiality, and their purpose of funding specific infrastructure projects rather than pursuing general development goals.

With the current COVID-19 pandemic, these countries are finding it increasingly difficult to repay these Chinese loans. One example is Sri Lanka, which is also among China's largest debtors. In May, the Asian nation defaulted on its debt.