China's Belt and Road Initiative Faces Debt and Sustainability Concerns

China invested $1 trillion in the Belt and Road Initiative to gain global influence through infrastructure loans. But debt levels are now unsustainable for many countries.

China is shifting from being the world's largest lender to the largest debt collector. Its overseas lending peaked in 2016 and dropped sharply by 2021.

Many Belt and Road projects have contributed to environmental issues. China now emphasizes smaller, more sustainable grants over large loans.

With rising interest rates, developing countries are struggling to repay loans linked to the US dollar. China has allowed some deferred payments.

The initiative aligned China with autocratic states shunned by the West. Most European leaders will skip China's Belt and Road summit this year.