Is China Buying the World? How Poor Nations Are Losing Control

For many of the world’s poorest nations, poverty is no longer their only problem—Chinese debt is emerging as a silent economic threat. A new report by Australia’s prestigious think tank, the Lowy Institute, has revealed that in 2025, 75 of the poorest countries are set to repay China a record-breaking amount in debt installments.

According to the report, these countries collectively owe China over $35 billion. What began as economic assistance has now morphed into a powerful diplomatic weapon for Beijing, raising global alarm.

Debt Over Development

The Lowy Institute warns that these nations are nearing a tipping point. Instead of focusing on growth and stability, they’re being forced to divert resources toward repaying massive Chinese loans. This financial pressure is now directly threatening their development agendas and public services.

How China Became the ‘King of Debt’

Over the last decade, China—through its massive Belt and Road Initiative (BRI)—has poured billions into infrastructure, power plants, and ports in dozens of developing nations. Initially marketed as economic partnerships, many of these loans came with steep conditions, leading several countries into what is now being called a “debt trap.”

Countries like Sri Lanka, Zambia, Pakistan, and Kenya have already suffered the consequences. One of the most cited examples is Sri Lanka’s Hambantota Port, which had to be handed over to China on a 99-year lease after it failed to repay the debt.

Not Just Economics—A Strategic Power Play

Experts argue that China’s lending strategy is not merely financial—it’s geopolitical. When countries default or struggle to repay, they are often forced to comply with China’s terms in areas like trade, defense cooperation, or maritime access.

India’s Neighborhood Under Pressure

China’s growing influence through debt is especially concerning for India. Several neighboring countries—Nepal, Bangladesh, Sri Lanka, and the Maldives—are heavily indebted to China. If these countries buckle under debt pressure, it could bring Chinese strategic dominance alarmingly close to India’s borders, altering the power dynamics in South Asia.

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