Hungary rolls out red carpet for Xi in final leg of European tour

Warm welcome for Chinese president contrasts with rest of EU, with up to 18 cooperation agreements expected

Hungary has rolled out the red carpet for Xi Jinping in a show of warmth that contrasts with wariness in the rest of the EU about China’s stance on trade, global politics and human rights.

On the third and final stop of his first European tour in five years, Xi was given a ceremonial welcome by Hungary’s president, Tamás Sulyok, at Buda Castle, in Budapest, before talks with Viktor Orbán. The Hungarian prime minister, the EU’s longest-serving leader, has sought to deepen ties with Beijing and blocked EU motions criticising China’s human rights abuses.

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Six killed after suicide bomber rams convoy of Chinese engineers in Pakistan

Five Chinese nationals and their Pakistani driver killed while en route from Islamabad to dam construction site

Six people have been killed after a suicide bomber rammed a vehicle into a convoy of Chinese engineers working on a dam project in north-west Pakistan, in the third significant attack on Chinese interests in the country in a week.

The first two attacks targeted a Pakistani naval airbase and a strategic port used by China in the south-west province of Balochistan where Beijing is investing billions in infrastructure projects.

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Italy to withdraw from China’s belt and road initiative, say sources

Decision of only G7 nation to join project reportedly communicated to Beijing three days ago

Italy has formally notified China of its withdrawal from Beijing’s ambitious belt and road infrastructure initiative (BRI), a significant trade and infrastructure project, according to two government sources.

The decision, which had been expected for some time, was reportedly communicated to Beijing three days ago, although no official communication has been released by either side.

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China ‘world’s biggest debt collector’ as poorer nations struggle with its loans

Country, estimated to be owed up to $1.5trn, is increasing penalties for late payments and cutting back on infrastructure projects

China has become the world’s biggest debt collector, as the money it is owed from developing countries has surged to between $1.1tn (£889bn) and $1.5tn, according to a new report. An estimated 80% of China’s overseas lending portfolio in the global south is now supporting countries in financial distress.

Since 2017, China has been the world’s biggest bilateral lender; its main development banks issued nearly $500bn between 2008 and 2021. While some of this predates the belt and road initiative (BRI), Beijing’s flagship development programme has mobilised much of the investment in developing countries.

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China woos global south and embraces Putin at belt and road Beijing summit

Development drive’s forum will focus on poorer countries as Xi’s relations with the west become increasingly frosty

World leaders are gathering in Beijing for China’s belt and road initiative (BRI) forum, the third such event since the trademark global development drive was launched by President Xi Jinping 10 years ago.

The BRI was originally envisioned as a vast physical and digital infrastructure project to connect China with central Asia, south-east Asia, Europe and the rest of the world. It later broadened into a mammoth infrastructure financing vehicle for Chinese lenders to support projects in nearly every corner of the world, particularly in the global south. With that support came China’s mounting influence on the world stage, even as western countries became increasingly sceptical of the BRI.

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Biden Pacific summit suffers setback as Solomon Islands PM skips meeting

US says it is disappointed prime minister Manasseh Sogavare will not attend Monday’s summit, amid race for influence with China

The White House has said it is disappointed the Solomon Islands prime minister, Manasseh Sogavare, will not attend a Pacific Islands summit with Joe Biden next week.

The US president will host a second summit with leaders of the Pacific Islands Forum at the White House on Monday as part of his efforts to step up engagement with a region where the US is in a battle for influence with China.

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India, US and Saudi Arabia in talks on rail and ports deal linking Gulf and south Asia

Talks include Europe and UAE as Joe Biden flies to Delhi with aim of rivalling China’s Belt and Road

The US, Saudi Arabia, India and other nations are discussing a possible infrastructure deal that could reconfigure trade between the Gulf and south Asia, linking Middle Eastern countries by railways and connecting to India by port, according to US officials aware of the conversations.

The talks, which have also included the United Arab Emirates and Europe, may or may not yield a concrete result in time for an announcement on the sidelines of this week’s G20 leaders’ meeting, the officials said.

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China spent $240bn on belt and road bailouts from 2008 to 2021, study finds

Rise in emergency financing for other countries since 2016 correlates with drop in infrastructure lending

China spent $240bn (£195bn) bailing out countries struggling under their belt and road initiative debts between 2008 and 2021, new data shows.

Research found that Chinese state-backed lenders released bailout funds to 22 countries, including Argentina, Pakistan, Sri Lanka and Ukraine. Almost 80% of the emergency rescue lending was issued after 2016, reaching more than $40bn in 2021.

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Pakistan’s PM says rival Imran Khan is ‘biggest liar on earth’

Exclusive: As economic turmoil continues, Shehbaz Sharif accuses predecessor of leaving the country in ruins

Pakistan’s prime minister, Shehbaz Sharif, has accused the former premier Imran Khan of being the “the biggest liar on the face of the earth” and injecting poison into society to “dangerously polarise the electorate” after he was toppled from power earlier this year.

Speaking in his first interview from Pakistan since he took over as prime minister in April, Sharif, 70, spoke unsparingly of the “damage” that Khan, the former cricket superstar who ruled Pakistan from 2018, had done to the country in both domestic and foreign affairs.

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IMF offers Sri Lanka provisional $2.9bn loan to tackle debt crisis

Funding still needs to be approved but could offer breathing space amid country’s economic turmoil

The International Monetary Fund has tentatively offered Sri Lanka a $2.9bn (£2.5bn) loan to help the country recover from the worst economic crisis since it gained independence from Britain in 1948.

The funding is meant to provide some breathing space for Sri Lanka, which is scrambling to restructure nearly $30bn in debt to creditors including China, India and a string of international banks.

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China funnels its overseas aid money into political leaders’ home provinces

Schools, stadiums or airports help the presidents of countries that receive cash from Beijing tighten their grip on power

China’s financing of overseas projects has disproportionately benefited the core political supporters of incumbent presidents or prime ministers of those countries that receive the funds, according to a new book.

During the 20th century, China was mostly known as a recipient of international development finance. Its overseas development programme was modest – roughly on a par with that of Denmark. But over the course of one generation, as Beijing emerged as the world’s second-largest economy, its footprint began to extend far beyond its borders – often in the form of infrastructure initiatives such as Belt and Road.

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China owed $385bn – including ‘hidden debt’ from poorer nations, says report

AidData finds 42 low-to-middle income countries with ‘belt and road’ exposure exceeding 10% of GDP

Researchers have identified debts of at least $385bn (£286bn) owed by 165 countries to China for “Belt and road initiative” (BRI) projects, with loans systematically underreported to international bodies such as the World Bank.

The four-year study by US-based research lab AidData said the debt burdens were kept off the public balance sheets through the use of special purpose and semi-private loans, and were “substantially larger than research institutions, credit rating agencies, or intergovernmental organisations with surveillance responsibilities previously understood”.

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Protests in Pakistan erupt against China’s belt and road plan

Demonstrations shut down Gwadar, where Chinese are blamed for lack of water and electricity and threat to local fishing

Protests have erupted in Pakistan’s port city Gwadar against a severe shortage of water and electricity and threats to livelihoods, part of a growing backlash against China’s multibillion-dollar belt and road projects in the country.

This week, demonstrators including fishers and other local workers blocked the roads in Gwadar, a coastal town in Balochistan. They burned tyres, chanted slogans and largely shut down the city, to demand water and electricity and a stop to Chinese trawlers illegally fishing in the nearby waters and then taking the fish to China. Two people were injured when the authorities cracked down on the protesters.

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Syrian economy lies in ruins and China sniffs opportunity

Analysis: War may be winding down, but with Assad in charge for seven more seven years the country remains splintered

Standing on a podium on Saturday to take an oath of office, Bashar al-Assad declared himself the only man who could rebuild Syria.

His first foreign guest, China’s foreign minister, Wang Yi, seemed to enhance his claim, endorsing the president’s win in a May poll described by Britain and Europe as “neither free nor fair” and laying a marker to help get the job started.

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Federal government tears up Victoria’s Belt and Road agreements with China

Foreign minister Marise Payne cancels two deals between Victoria and China under new foreign veto laws

The Morrison government has used its sweeping new foreign veto laws to tear up Victoria’s Belt and Road agreements with China, in what the Chinese embassy has denounced as a “another unreasonable and provocative move”.

The foreign minister, Marise Payne, said she would cancel those two deals, along with two older agreements between the Victorian government and Iranian and Syrian entities, because they were “inconsistent with Australia’s foreign policy or adverse to our foreign relations”.

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Ma Jun: China has started to ‘walk the walk’ on climate crisis

US dropped the environmental ball under Trump, but Biden victory means the two countries can work together for a green recovery, says campaigner

Ma Jun experienced a strange role reversal during Donald Trump’s presidency. Over more than two decades as one of China’s top environmental campaigners, American encouragement for Beijing to cut carbon emissions and temper the damage of rapid industrialisation had been part of the background music. Ma never imagined he would see the US renege on environmental commitments while China began to face up to the challenge.

“It’s been frustrating,” says Ma of the past four years as we speak on the phone, the bustle of Beijing audible in the background. “When it comes to environmental collaboration between the governments, it has been hard to do anything.”

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This decade belonged to China. So will the next one | Martin Jacques

The west is still finding it extraordinarily difficult to come to terms with China’s remarkable ascent

By 2010, China was beginning to have an impact on the global consciousness in a new way. Prior to the western financial crisis, it had been seen as the new but very junior kid on the block. The financial crash changed all that. Before 2008 the conventional western wisdom had been that sooner or later China would suffer a big economic meltdown. It never did. Instead, the crisis happened in the west, with huge consequences for the latter’s stability and self-confidence.

Related: Europe needs China’s billions. But does it know the price? | Juliet Ferguson

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China steps in as Zambia runs out of loan options

Southern Africa’s third largest economy is a textbook example of the increasing debt facing a fast-growing continent

Zambia’s capital, Lusaka, was having a power cut, so the only light in the restaurant was from Fumba Chama’s mobile phone. The rapper, better known as PilAto, had just finished uploading a new track to Twitter. The bitter-sweet lyrics (in Bemba) of Yama Chinese describe the concerns of many Zambians: “They put on smart suits and fly to China to sell our country. The roads belong to China. The hotels are for the Chinese. The chicken farms are Chinese. Even the brickworks are Chinese.”

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Experts dispel claims of China debt-trap diplomacy in Pacific but risks remain

Beijing should substantially reform its lending practices, Lowy Institute says

China has not engaged in deliberate “debt-trap diplomacy” in the Pacific, but the burgeoning scale of China’s lending, and institutional weakness within Pacific states, pose clear risks for small states being overwhelmed by debt, a new report argues.

And an infrastructure arms race between China and other countries with interests in the region – including Australia – might only exacerbate the problem.

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Belt and Road forum: China’s ‘project of the century’ hits tough times

Raft of countries including Turkey have refused to attend latest summit amid growing concern about debt diplomacy

As China fetes its Belt and Road initiative at a summit this week, Chinese officials will be working hard to defend the flagship project from growing international criticism.

The three-day forum starting on Thursday is meant to promote Chinese leader Xi Jinping’s “project of the century”, a foreign policy initiative launched in 2013 to revive ancient trading routes between Asia and Europe, as well as build new links in the Middle East, Africa, and South America.

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