China is now the biggest debt collector in the developing world, report says

China has emerged as the world's largest debt collector for developing nations, reversing its recent lending decline amid the COVID-19 pandemic. The shift threatens to undermine poverty reduction efforts and destabilize economies by forcing countries to service massive debts rather than invest in development. As more than a quarter of external debt in poorer regions is owed to China, its neighbors and key resource-dependent countries face increased financial strain, complicating their ability to borrow or develop sustainably. This move underscores the growing challenges posed by global debt dynamics, including U.S. tariffs and shifting aid support from Western powers.