China spent £194.97 billion rescuing 'Belt and Road Initiative' nations, says study
Argentina was the largest beneficiary, receiving £90.80bn, equivalent to $111.8bn, followed by Pakistan with £39.39 ($48.5bn) and Egypt with £12.67 ($15.6bn)
A recent study published on Tuesday (28) revealed that China has allocated approximately £194.97 billion equivalent to about $240 billion in financial assistance to 22 developing nations from 2008 to 2021.
The amount has notably increased in recent years due to more countries experiencing difficulties in repaying loans related to the construction of "Belt and Road Initiative" (BRI) infrastructure.
Researchers from prominent institutions such as the World Bank, Harvard Kennedy School, AidData, and the Kiel Institute for the World Economy found that nearly 80 per cent of the lending occurred between 2016 and 2021, with the primary beneficiaries being middle-income countries such as Mongolia, Pakistan, and Argentina.
China has provided loans amounting to hundreds of billions of dollars for infrastructure development in developing countries. However, lending activity has declined since 2016 due to several projects failing to generate the anticipated financial returns.
"Beijing is ultimately trying to rescue its own banks. That's why it has gotten into the risky business of international bailout lending," said Carmen Reinhart, a former World Bank chief economist and one of the study's authors.
BRI nations have faced financial strain due to high inflation and interest rates, compounded by the pandemic, making it hard to repay debts.
Countries have received bailouts to extend loans and remain solvent. China claims over 150 countries have joined the trillion-dollar BRI infrastructure initiative launched by President Xi Jinping ten years ago.
According to Beijing, the objective of the initiative is to strengthen friendly trade ties with other countries, especially those in the developing world.
However, critics have alleged that China entices lower-income nations into debt traps by providing massive, unsustainable loans.
Although smaller than the International Monetary Fund and the significant liquidity support provided by the US Federal Reserve, China's bailouts have rapidly increased, as indicated in the AidData report.
Argentina was the largest beneficiary, receiving £90.80bn, equivalent to $111.8bn, followed by Pakistan with £39.39 or $48.5bn and Egypt with £12.67 equalling $15.6bn. Nine nations received less than $1bn or £0.81bn.
The People's Bank of China's (PBOC) swap lines accounted for £138.10bn or $170bn of the financing, including in Suriname, Sri Lanka, and Egypt.
The authors of the report stated that "Beijing has targeted a limited set of potential recipients, as almost all Chinese rescue loans have gone to low- and middle-income BRI countries with significant debts outstanding to Chinese banks,".
The study cautioned that Chinese loans tend to be less transparent than other last-resort international lenders and often carry an average interest rate of 5 per cent, compared to the typical 2 per cent rate on an IMF loan.
The majority of such loans were "rollovers," with short-term loans being repeatedly extended to refinance upcoming debt obligations.
According to the report, Chinese state-owned banks and companies provided £56.86bn or $70bn in bridge loans or balance of payments support, while rollovers of both types of loans amounted to £113.72bn or $140bn.
China's government responded to the criticism, stating that its overseas investments were based on "openness and transparency" principles.
The foreign ministry spokesperson denied that China had compelled countries to borrow or repay loans and claimed that loan agreements were not linked to political self-interest.
However, China has been criticised for delaying debt restructurings with countries like Zambia, Ghana, and Sri Lanka.
US president Donald Trump (R) and Indian prime minister Narendra Modi hold a joint press conference in the East Room at the White House on February 13, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)
US PRESIDENT Donald Trump urged EU officials to hit China with tariffs of up to 100 per cent as part of a strategy to pressure Russian president Vladimir Putin, according to a US official and an EU diplomat.
China and India are major purchasers of Russian oil and, as such, they play a vital role in keeping Russia's economy afloat as it continues to pursue its expanded invasion of Ukraine, which began in 2022.
Trump made the request, which was conveyed via conference call, to EU sanctions envoy David O'Sullivan and other EU officials. The EU delegation is currently in Washington to discuss sanctions coordination.
The EU diplomat said the US had indicated it was willing to impose similar tariffs if the European Union heeded the US request.
"They are basically saying: We'll do this but you need to do it with us," the diplomat said.
The US request, if heeded, would result in a change of strategy for the EU, which has preferred to isolate Russia with sanctions rather than tariffs.
China firmly opposes the US applying such so-called economic pressure, its foreign ministry said at a regular press briefing on Wednesday, adding that it also opposed the using of China in discussions on Russia.
Trump, whose request was first reported by the Financial Times, has frequently threatened to impose tariffs on India and China as punishment for their purchases of Russian crude.
While Trump did hike tariffs on India over the summer by 25 percentage points in part due to its economic relationship with the Kremlin, Trump has yet to pull the trigger on the more punishing options he has floated.
At times, he has complained that Europe itself has not fully decoupled from Russia, which supplied about 19 per cent of EU gas imports last year although the bloc says it is committed to fully ending its dependency on Russian energy.
Later on Tuesday (9), Trump suggested that the US could in fact boost trade with India, writing in an evening social media post that the U.S. and India are working to address trade barriers between the nations. He added that he was looking forward to speaking with Indian prime minister Narendra Modi.
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Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.
Trump says he will speak to Modi in the coming weeks amid trade talks
Modi calls US and India "close friends and natural partners"
Trade officials from both countries may restart meetings in September
US-India trade reached $129 billion in 2024 with a $45.8 billion US deficit
US PRESIDENT Donald Trump said on Tuesday his administration is continuing negotiations to address trade barriers with India and that he would speak to prime minister Narendra Modi, indicating a possible reset after recent friction.
Trump said he looked forward to speaking to Modi in the "upcoming weeks" and expressed confidence that the two sides could reach an agreement.
"I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries," he said in a post on social media.
Modi responds with optimism
On Wednesday, Modi said Washington and New Delhi "are close friends and natural partners." He added that teams from both sides were working to conclude the trade discussions soon.
"I am also looking forward to speaking with President Trump. We will work together to secure a brighter, more prosperous future for both our people," Modi said in a social media post.
India's shares rose over 0.5 per cent after the remarks from both leaders.
Trade deal uncertainty
Trump had said for months that a trade deal was close, but later doubled tariffs on Indian imports to 50%, raising doubts about the future of the U.S.-India relationship.
In recent weeks, Trump and top US officials criticised India for buying oil from Russia, saying New Delhi was funding the war in Ukraine, a charge India denies.
At the same time, Modi has engaged with China and Russia. He visited China last month for a summit hosted by Chinese President Xi Jinping and was also seen with Russian president Vladimir Putin.
Analysts cautious
"While the social media statements by Trump and Modi signal a potential rapprochement between the U.S. and India, it is still premature to assume that a resolution will arrive swiftly," Madhavi Arora, economist at Emkay Global, said.
"With Trump, we will need to wait for more concrete signals that a deal is in the offing."
Meetings to restart in September
Trade officials from India and the US may meet in September to restart in-person discussions, CNBC-TV18 reported, citing sources. A US trade negotiators’ visit to New Delhi scheduled for August 25-29 was cancelled after talks stalled.
India's trade ministry declined to comment on reports of new meetings.
According to US Census Bureau data, two-way goods trade between the US and India reached $129 billion in 2024, with a $45.8 billion US trade deficit.
Tariffs and EU pressure
Trump recently said India had offered to reduce tariffs on US goods to zero but described the offer as late, saying the country should have acted earlier.
Reuters reported that Trump urged the European Union to impose 100% tariffs on China and India as part of pressure tactics against Russian president Vladimir Putin.
Indian officials in New Delhi said they do not expect the EU to take measures against India and that assurances had been given that EU trade talks would not be disrupted.
(With inputs from agencies)
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Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. (Photo: Getty Images)
US PRESIDENT Donald Trump praised Microsoft CEO Satya Nadella and Google CEO Sundar Pichai during a White House dinner with top technology executives on Thursday. The two Indian-American leaders thanked him for his leadership and for policies in the technology and AI sectors.
Trump described the gathering as a “high IQ group,” calling the executives “the most brilliant people.” Sitting at the centre of a long table, Trump was flanked by First Lady Melania Trump and Microsoft co-founder Bill Gates on one side, and Meta CEO Mark Zuckerberg on the other. Pichai and Apple CEO Tim Cook sat across from him, while Nadella was seated toward one end of the table.
“It’s an honour to be here with this group of people. They’re leading a revolution in business and in genius and in every other work you can imagine,” Trump said.
After his remarks, Trump invited the technology leaders to share their thoughts.
Pichai said the “AI moment is one of the most transformative moments any of us have ever seen or will see in our lifetimes. So making sure the US is at the forefront.” He called the White House’s “AI Action Plan,” announced in July, a “great start.”
“We look forward to working together. And thanks for your leadership,” Pichai told Trump. “Great job you’re doing. Incredible, really,” Trump replied.
Turning to Nadella, Trump said the Microsoft chief “has done a pretty good job” and pointed to Microsoft stock rising from USD 28 to over USD 500. “What a job you’ve done,” Trump said.
Nadella thanked Trump “for bringing us all together” and for policies that support US leadership in technology. He added that market access and global trust in American technology were key.
“I think that everything that you are doing in terms of setting in place the platform where the rest of the world can not only use our technology, but trust our technology more than any other alternative, is perhaps the most important issue, and you and your policies are really helping a lot,” Nadella said.
Nadella also thanked the First Lady for hosting a discussion on AI and economic opportunity. Trump responded: “A really amazing job you’ve done.”
Earlier in the day, Melania Trump hosted a meeting of the White House Task Force on Artificial Intelligence Education, joined by Pichai, IBM CEO Arvind Krishna and other industry leaders.
Speaking after Nadella, Gates said he is now in the second phase of his career, “giving away all the wonderful money that Satya’s good work has helped multiply a lot,” drawing laughter from Trump.
During the dinner, Trump asked Pichai about Google’s investment plans. Pichai said the company would invest USD 250 billion in the US over the next two years. “It’s great. We are proud of you. A lot of jobs,” Trump responded.
Trump also asked Nadella about Microsoft’s investment. Nadella said the company invests about USD 75–80 billion each year in the US. “Very good, thank you very much,” Trump said.
Responding to media questions at the event, Trump repeated his claim that he had “settled” seven wars, without naming them. He added that three of those wars had lasted 31, 34 and 37 years. Trump also said he would soon speak with Russian President Vladimir Putin, adding, “We are having a very good dialogue.”
Other attendees included Google co-founder Sergey Brin, OpenAI CEO Sam Altman and Oracle CEO Safra Catz.
(With inputs from PTI)
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The visit coincides with the 13th round of India-EU negotiations on a proposed free trade agreement, which both sides aim to finalise by December. (Representational image: iStock)
THE EUROPEAN Union's Political and Security Committee (PSC), made up of envoys from the 27 member states, will begin a five-day visit to India on Wednesday. The visit will focus on strengthening overall ties, including efforts to conclude a free trade agreement that has been under negotiation for years.
The committee, headed by Ambassador Delphine Pronk, is visiting India for the first time. It will hold strategic discussions with senior Indian government officials, defence industry representatives, civil society organisations and leading think tanks.
The PSC consists of EU member states' ambassadors based in Brussels and is chaired by the European External Action Service. It plays a key role in shaping the EU's common foreign and security policy (CFSP) and common security and defence policy (CSDP).
The visit coincides with the 13th round of India-EU negotiations on a proposed free trade agreement, which both sides aim to finalise by December. It also comes ahead of the next India-EU summit, expected to be held in India in the first half of next year.
"This extensive engagement aims to provide a comprehensive assessment of policy priorities, while exploring future avenues for enhancing cooperation on key foreign policy matters, security and defence, particularly in the lead up to the upcoming EU-India summit," an EU readout said.
The PSC monitors global developments and advises the Council of the European Union on strategic responses.
"EU-India collaboration is vital in key areas of mutual interest, including counterterrorism, cybersecurity, hybrid threats, maritime security and maritime domain awareness, space security, defence industry cooperation and countering foreign information manipulation and interference," Ambassador Pronk said.
"These critical issues will be high on our agenda and the insights and recommendations gathered from our visit will be presented to the top political leaders of the EU, paving the way for enhanced cooperation," she added.
Herve Delphin, the EU’s Ambassador to New Delhi, said the EU and India were "natural partners" with strongly converging interests and shared values.
"Our leaders are determined to elevate the EU-India Strategic Partnership and harness its immense potential," he said. "This partnership of mutual benefit can contribute to the prosperity and safety of our citizens and contribute to global stability and security."
Ambassador Delphin added that the visit by PSC underlines Team Europe’s intent to strengthen defence and security cooperation with India.
The EU readout said the visit builds on recent milestones, including the EU College of Commissioners’ visit to India in February, the first EU-India Strategic Dialogue in June, and the upcoming EU-India Summit in early 2026.
"The EU is one of India's largest trading partners and investors, with both sides aiming to conclude a free trade agreement by the end of 2025," it said. "The EU and India as large, pluralistic democracies share a strong commitment to upholding the rule of law, human rights, and democratic governance," it added.
(With inputs from agencies)
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Takeaway apps have become a source of employment for undocumented migrants
Uber warns Home Office rules targeting illegal gig economy workers could increase takeaway delivery costs in the UK.
Undocumented migrants have historically used food delivery apps for work, exploiting limited right-to-work checks.
Companies like Uber Eats, Deliveroo, and Just Eat have introduced stricter checks, including facial recognition and document verification.
Compliance and administrative costs have contributed to a fall in Uber UK profits despite rising revenues.
Government enforcement includes thousands of interviews and hundreds of arrests for suspected illegal working.
Uber’s UK accounts at Companies House welcomed the Home Office’s efforts to deter migrants and people smugglers from risking Channel crossings. However, the company cautioned that “new legislative requirements could have an adverse impact on our business, including expenses necessary to comply with such laws and regulations.”
Takeaway apps have become a source of employment for undocumented migrants, attracted by historically limited right-to-work checks. Delivery riders have sometimes sold or rented their accounts on social media to “substitutes” who may be working illegally.
Company response and compliance measures
Over the past year, Uber, Deliveroo, and Just Eat have introduced stricter “right-to-work” verification, including enhanced facial recognition and document checks. Thousands of workers who failed these checks have been removed from the platforms.
The Home Office has urged delivery companies to strengthen monitoring to prevent misuse and suspend accounts where illegal work is detected. Officials are also sharing data on asylum accommodation to help companies monitor potential illegal employment.
Impact on Uber UK’s finances
Uber’s UK revenues increased from £5.3bn in 2023 to £6.5bn in 2024, but profits fell from £29.4m to £21.6m. The company cited rising administrative and compliance costs in its food delivery division as a key factor.
In February, Uber reported blocking thousands of accounts since April 2024 after introducing tougher right-to-work checks to prevent illegal substitutions.
Government enforcement figures
In July, Home Office immigration enforcement teams spoke to 1,780 individuals, resulting in 280 arrests for suspected illegal working. The asylum status of 53 individuals is currently under review.
Significance for the UK gig economy
The crackdown reflects broader government efforts to regulate gig economy employment and prevent illegal working while highlighting the potential economic impact on consumers. Takeaway prices may rise as delivery companies adjust to stricter verification requirements and increased compliance costs.