Due to the slow implementation of the Corona Recovery Fund, the EU Commission fears that not all of the money can be used. It is proposing simplifications and shifts in funding. An extension of the deadline is out of the question.
By Table.Briefings
At the conclusion of the People's Congress, the delegates approved trillions in new debt. The bulk of the money will continue to flow into infrastructure and industrial subsidies. This means that the fundamental shift towards more domestic consumption has once again failed to materialize.
By Jörn Petring
The Commission aims to encourage member states to increase defense spending through subsidized loans and a limited relaxation of EU debt rules. In Berlin, the potential coalition partners agree to exempt defense spending from the debt brake.
By Table.Briefings
Unlike China, Western countries do not primarily pursue their own economic interests when lending to African countries. This is the conclusion of a new study by the Kiel Institute for the World Economy.
By Arne Schütte
In its annual economic policy recommendations to the member states, the EU Commission criticizes Germany's high trade surplus. It also calls on Germany to invest more.
By Table.Briefings
The debt rules are forcing savings, while the need for investment is increasing. At the same time, the Next Generation EU investment program is coming to an end. A discussion about a successor program will be unavoidable – but the political hurdles are high.
By Table.Briefings
Dozens of emerging and developing countries are over-indebted or can barely borrow on the international capital market. However, many of these countries have a particularly high need for investment or great potential for climate and environmental action.
By Nico Beckert
The China Global South Project tracks China's relationship with emerging and developing countries in Africa and other parts of the world. The much-praised initiative is the brainchild of South African researcher Cobus van Staden.
By Redaktion Table
Rating agency Moody’s considers the debt in China too high and the growth too low. While the evaluation does not affect the state's financing capability, it does impact perceptions abroad.
By
China's national debt, the Evergrande crisis, and China’s global debt diplomacy: Read all the important and latest news from China.Table editorial team.
China's national debt is estimated to rise to 14 trillion US Dollars in 2022. This number approximately amounts to 78 percent of China’s gross domestic product (GDP). Large parts of China’s national debt can be attributed to supporting non-profitable state-owned enterprises.
Furthermore, in 2020, following the coronavirus pandemic, China’s debt-to-GDP ratio rose to 270%. However, in 2021, the trend was reversed due to higher consumption and exports. Nevertheless, there is a lot of speculation on the sustainability of China’s model and whether or when the bubble would burst. A collapse could lead to a global financial crisis.
China's economic growth is built upon debt. Local governments are piling up deficits to boost the economic development of provinces. However, China’s central government announced in its 14th Five-Year Plan that it would stabilize financial markets and prevent further accumulation of deficit.
China’s Evergrande debt crisis starting in 2020 demonstrates the issues concerning China’s strategy. After new regulations on limits for Evergrande and other companies in China’s property sector were put into effect, Evergrande started facing immense difficulties. The real estate market is regarded as a core problem of the Chinese economy.
Yet, despite China’s high national debt, experts believe that the Chinese government has sufficient instruments at its disposal to cushion a collapse of its economy resulting from a possible financial crisis. Climate change, on the other hand, is seen as a far greater threat to China's prosperity.
Recently, accusations against China’s foreign debt diplomacy in African and Asian countries have arisen. China is the most important lender to many African countries. Countries use the money for infrastructure development. However, China uses this diplomacy to promote its values and narratives. Economic aid is often followed by political and economic dependencies. China’s debt diplomacy has risen the question as to whether it should be considered a trap for countries relying on China’s lending.
Read all the latest news on China’s policies and foreign debt diplomacy, delivered to you by China.Table.
