China has spent a trillion dollars to expand its influence across Asia, Africa and Latin America through its Belt and Road infrastructure program. Now, Beijing is working on an overhaul of the troubled initiative, according to people involved in policy-making.

A slowing global economy, combined with rising interest rates and higher inflation, have left countries struggling to repay their debts to China. Tens of billions of dollars of loans have gone sour, and numerous development projects have stalled. Western leaders have criticized China’s lending practices, which some have labeled “debt-trap diplomacy,” embarrassing Beijing. Many economists and investors have said the country’s lending practices have contributed to debt crises in places like Sri Lanka and Zambia.

This post first appeared on wsj.com

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

UBS Agrees to Buy Credit Suisse for More Than $3 Billion

Markets Finance Deal is part of effort to prevent further erosion of…

GOP senators threaten to delay major military bill over Covid vaccine mandate

WASHINGTON — Several Republicans are warning they will drag out Senate consideration…

Australia Raises Interest Rates for First Time in More Than a Decade

SYDNEY—The Reserve Bank of Australia raised its benchmark interest rate for the…

India’s farmers are protesting authoritarianism that’s disguised as capitalism

If you’ve been watching the news — or even just following Rihanna…