Debt owed to China by South Asian and African countries has sharply risen, with China becoming a major lender. Initiated in 1999, China’s ‘Going Global Strategy’ propelled this surge, resulting in low-and-middle-income countries owing China $180 billion by 2022. Most debts are for infrastructure projects. However, China’s lending has reduced due to economic challenges and defaults by borrowers like Sri Lanka. Chart 2 highlights countries like Pakistan and Sri Lanka owing over 70% of their bilateral debt to China. While China once borrowed from nations like Japan, its own external debt has decreased in recent years.