World’s largest debt collector is China

• By the end of 2023, over 25% of the world’s bilateral external debt was owed to China, making it the leading debt collector.

• China’s external lending increased significantly over the last two decades, leading to an exponential increase in bilateral external debt owed by countries.

• Bilateral external debt is a country’s debt to foreign governments, not debt owed to agencies like the International Monetary Fund and bondholders.

• External debt stock owed to all countries increased from $49.5 billion to $741.4 billion between 1973 and 2023.

• China’s share in the total bilateral external debt stock owed increased from $1 billion to $193.1 billion.

• The share of external debt owed to top lenders in the 1973 to 2023 period decreased from 36% in 1973 to just 4% in 2023.

• Countries with higher bilateral debt owed to China by 2023 were often in financial crises.• Countries like Laos, Angola, and Sri Lanka owe significant amounts of their external debt to China.