Professor Toshiro Nishizawa‘s article “China’s role in sovereign debt restructuring” was published in the peer-reviewed academic journal China International Strategy Review (Springer).
https://doi.org/10.1007/s42533-024-00158-5
https://link.springer.com/article/10.1007/s42533-024-00158-5
Abstract
As the world’s largest bilateral lender to low- and middle-income countries (LMICs), China faces challenges dealing with some sovereign borrowers in debt distress under the Belt and Road Initiative (BRI). The current global sovereign debt landscape suggests that the fundamental challenge of sovereign debt restructuring in the developing world is not China, but rather how to equitably address unsustainable debt owed to multiple categories of creditors. Nonetheless, by offering early-stage debt relief, China can alleviate the burden on borrowers who disproportionately owe significant debt to China and prevent trapping itself in unpaid debts. China’s policy decision will determine whether it can avoid the same mistake that Western creditors made of eventually losing all financial claims on many debt-distressed, heavily indebted poor countries (HIPCs) by the mid-2000s. Furthermore, a considerate approach by China is key to achieving the dual goals of mitigating LMICs’ debt distress and vulnerabilities to climate change by applying a climate-centered approach toward sustainable socio-economic development. China can contribute to creating better global debt governance, which should go hand in hand with global environmental governance and have critical economic, political, and social implications.
About the Journal
China International Strategy Review (CISR) publishes original writings in the fields of world politics and international strategic studies related, but not limited to, China and its foreign relations. It encourages writers to provide leading-edge research findings and policy-relevant analysis. With authors of diverse national and regional backgrounds, the journal aims to serve as a bridge between China’s strategic perspectives and those of the international community. Interdisciplinary approaches are applied to make the journal intellectually rich and challenging.
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