After Cyclone Gita damaged Tonga’s Parliament House last year, the government suggested China might like to pay to rebuild it. Photo: AP

Is Chinese money creating a debt trap in Tonga?

  • South Pacific island nation owes Beijing about US$108 million, or a quarter of its gross domestic product
  • Experts say country could be important to China’s navy or coveted for its fisheries, seabed minerals and natural resources
Topic |   Pacific nations

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After Cyclone Gita damaged Tonga’s Parliament House last year, the government suggested China might like to pay to rebuild it. Photo: AP
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Djibouti is one of the most heavily indebted nations to China, as a portion of its economy’s size. Photo: AFP

China’s loans to rest of the world worth US$5 trillion, 6 per cent of global economy, new study reveals

  • The world’s debt to China grew tenfold between 2000 and 2017, from US$500 billion to US$5 trillion, with 80 per cent of emerging nations receiving Chinese funds
  • Kiel Institute estimates that 50 per cent of Chinese overseas funding is outside data captured by World Bank and IMF, raising concerns over transparency
Topic |   China economy

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Djibouti is one of the most heavily indebted nations to China, as a portion of its economy’s size. Photo: AFP
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