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The Top 20 Countries Owing Debt to China in 2025
1. Angola – A Heavy Borrower with Heritage of Oil Dependency
Angola remains one of China’s largest borrowers in Africa, with substantial debt accumulated over the past decade mainly due to oil-backed loans. Despite efforts to diversify its economy, Angola continues to face challenges in repaying its obligations to China, which has financed critical infrastructure such as roads, railways, and ports.
2. Pakistan – Balancing Debt with Strategic Alliances
Pakistan’s growing debt to China primarily stems from the China-Pakistan Economic Corridor (CPEC) projects. As a key partner in China’s Belt and Road Initiative (BRI), Pakistan has borrowed extensively for energy, transportation, and infrastructure developments, raising concerns about debt sustainability amidst economic pressures.
3. Kenya – Infrastructure Boom Meets Debt Challenges
Kenya’s rapid infrastructure expansion, including the construction of the Standard Gauge Railway, has been heavily financed by Chinese loans. Although these projects boost economic growth, they have contributed to Kenya’s rising debt levels, prompting debate on debt management and repayment viability.
4. Ethiopia – The Heart of Africa’s Development Plans
Ethiopia has become a major debtor to China through investments in hydroelectric dams, industrial parks, and transportation networks. While these projects have transformed Ethiopia’s infrastructure landscape, accountability and repayment remain delicate issues amid economic growth and debt concerns.
5. Angola – Oil Dependence and Chinese Lending
Again highlighting Angola’s position, this country’s debt to China is compounded by its historic dependence on oil exports. Chinese loans have financed exploration and oil infrastructure, but fluctuating oil prices threaten Angola’s ability to meet repayment obligations.
6. Venezuela – Debt Driven by Resource Needs
Venezuela’s debt to China skyrocketed due to loans aimed at stabilizing its oil sector amidst economic crisis. China has funded oil-for-loan agreements, but Venezuela’s ongoing political and economic instability complicates the repayment landscape.
7. Mozambique – Facing Debt Restructuring Challenges
Mozambique’s debt issues came into the spotlight after revelations of undisclosed loans that led to a debt crisis. Chinese creditors hold significant portions of debt, especially in natural resource and infrastructure sectors, prompting international billion-dollar restructuring talks.
8. Zambia – Struggling with Sovereign Debt
Zambia’s rapid borrowing to finance infrastructure and mining projects has led to a debt crisis. China is Zambia’s largest bilateral creditor, holding a significant portion of its external debt, making debt management critical as Zambia seeks financial stability.
9. Greece – European Debt Ties with Chinese Investment
Although part of the European Union, Greece has a noteworthy debt relationship with China, especially through investments in its port facilities and infrastructure projects that are intertwined with Chinese financing initiatives.
10. Laos – Small but Significant Borrower
Laos’ debt to China, concentrated in hydroelectric projects and transportation infrastructure, illustrates the risks faced by smaller nations engaging heavily in Chinese-funded projects. The country’s GDP growth contrasts with tightening debt repayment prospects.
11. Cameroon – Climbing Debt Amid Infrastructure Focus
Cameroon’s infrastructure development, including new roads, energy projects, and urban developments, has been financed in part by Chinese loans. Rising debt levels have stirred concerns about debt sustainability and economic resilience.
12. Myanmar – Political Instability and Debt Accumulation
Myanmar’s debt to China has increased notably due to infrastructure and resource development projects. Political unrest and sanctions add complexity to debt repayment, raising questions about long-term financial commitments.
13. Sri Lanka – The Notorious Case of the Hambantota Port
Sri Lanka’s debt crisis, notably over the Hambantota Port loan, has become a poster child for excessive borrowing. China holds a significant stake, with the port leased to Chinese enterprises as part of debt restructuring, highlighting the risks of over-leveraging.
14. Democratic Republic of Congo – Mining and Infrastructure Finance
The DRC’s reliance on Chinese loans for mining projects, transportation infrastructure, and energy initiatives positions it among top debtors. Political and economic risks threaten future repayments and debt sustainability.
15. Madagascar – Borrowing to Grow
Madagascar’s debt to China is primarily tied to infrastructural projects, including roads and port upgrades. While these projects promise economic benefits, mounting debt raises questions about future repayment capability.
16. Eritrea – Small but Strategically Important Debtor
Although smaller in scale, Eritrea’s Chinese debt reflects its strategic alliances in infrastructure. Its limited economy makes debt management tricky, especially amid regional tensions.
17. Sierra Leone – Post-Conflict Reconstruction Debt
Post-conflict Sierra Leone’s borrowing from China intends to develop healthcare, education, and transportation sectors. However, debt accumulation risks outweigh immediate economic gains if not managed carefully.
18. Tanzania – Images of Growth Under Chinese Loans
Tanzania has borrowed heavily for mega-infrastructure projects like ports, airports, and highways, many funded by Chinese entities. Growing debt levels pose challenges to future fiscal health.
19. Cameroon – Rising Debt Levels
Cameroon has become increasingly reliant on Chinese financing for infrastructure expansion. The debt surge has prompted calls for better debt transparency and risk assessment.
20. Malawi – Small Economy, Growing Debt
Malawi’s debt to China, although smaller, is significant for its economy, mainly for energy and transport projects. Managing repayment amid economic constraints remains a concern.
Summary: China’s role as a major lender continues to shape the economic landscape of countries worldwide. While these Chinese-funded projects promote development and regional integration, they also carry the risk of debt distress. As nations strive to balance growth with debt sustainability, transparency and strategic planning will be crucial in ensuring that these financial relationships benefit their long-term stability.
(Note: Debt figures are constantly evolving based on economic and political changes and should be monitored regularly for accuracy.)
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