The biggest taker of Chinese loans is the last country you’d guess

In a significant and “unexpected” twist to the narrative of global finance, a new study has revealed that the United States has been the single largest recipient of credit from China’s state-owned entities over the past quarter-century, dwarfing the lending to developing nations often associated with Beijing’s Belt and Road Initiative (BRI).

The report, published by AidData, a research lab at the College of William & Mary, tracked China’s overseas lending and grant-giving between 2000 and 2023, totalling an estimated $2.2 trillion across 200 countries.

The key finding is ironic because the US received more than $200 billion in official-sector credit for nearly 2,500 projects, making it the world’s largest recipient even though Washington often warns other countries about the risks of Chinese debt.

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The research indicates a fundamental shift in China’s credit strategy.

While once focused on developing economies, more than three-quarters of China’s recent overseas lending now supports activities in upper-middle and high-income countries. According to AidData’s Executive Director, Brad Parks, this lending to wealthy nations is strategically targeted, focusing on “critical infrastructure, critical minerals, and the acquisition of high-tech assets like semiconductor companies.”

Chinese state-backed institutions have proven active across nearly every US state and sector.

The capital has been funnelled into projects such as the construction of Liquid Natural Gas (LNG) facilities in Texas and Louisiana, data centres in Northern Virginia, major terminals at New York’s JFK and Los Angeles International Airports, and key energy infrastructure like the Dakota Access Oil pipeline.

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The study also found that much of the $200 billion in loans was hidden by sending it through shell companies in places such as the Cayman Islands and Delaware. This lack of transparency, coupled with the security implications of Chinese entities taking stakes in US businesses tied to critical technology—including biotech, robotics, and semiconductors—has raised alarms among security experts.

The report says China is still the world’s biggest official lender, with a loan portfolio far larger than earlier estimates, showing how extensive and well-developed its financial network is—even reaching deep into its main geopolitical rival.