China turbo-charged its lending to overseas energy projects last year, burnishing the attraction of its “infrastructure diplomacy” to the developing world and reinforcing its position as the dominant supplier of global development finance as Donald Trump draws back on such US funding abroad.
A new database, published on Tuesday by Boston University’s Global Economic Governance Initiative, shows that lending by China’s two global development banks rose 40 per cent last year to $48.4bn — a figure estimated to be several times the total funds allocated to energy infrastructure by the World Bank and other western-backed lending agencies.
“China is . . . exporting its model of infrastructure-led development abroad to those countries that are demanding energy and infrastructure but can’t get the financing from traditional sources,” said Kevin Gallagher, a Boston University professor and co-director of the Global Economic Governance Initiative.