CHINA China Reins In Its Belt and Road Program.

China Reins In Its Belt and Road Program, $1 Trillion Later
After loans have gone sour and projects have stalled, Beijing is revamping its troubled initiative
A construction site in Sihanoukville, Cambodia, part of China’s Belt and Road initiative, in 2019.
A construction site in Sihanoukville, Cambodia, part of China’s Belt and Road initiative, in 2019. BRENT LEWIN/BLOOMBERG NEWS
By Lingling WeiFollow
Sept. 26, 2022 10:10 am ET.

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.