U.S. Emerges as Top Recipient of Chinese Loans Amid Strategic Infrastructure Investments and Security Concerns

A new analysis reveals a significant shift in China’s global lending strategy, with the United States identified as the largest recipient of Beijing’s official credit over the past 25 years. According to a report by AidData, a research lab at the College of William & Mary, China’s state-backed lenders have allocated $2.2 trillion in loans and grants to 200 countries between 2000 and 2023. The U.S. alone received over $2 trillion across nearly 2,500 projects, surpassing contributions to developing nations and marking a departure from China’s traditional focus on infrastructure development in the Global South .

The study highlights a structural transformation in China’s lending priorities. While low- and middle-income countries accounted for 88% of Chinese loans in 2000, this share plummeted to 12% by 2023. Conversely, high-income and middle-income nations now receive 76% of Chinese credit, a 52-point increase from 2000. This shift aligns with Beijing’s broader economic strategy to secure strategic assets in advanced economies. For instance, U.S. projects funded by Chinese loans include liquefied natural gas terminals in Texas and Louisiana, data centers in Virginia, and airport expansions in New York and Los Angeles .

The security implications of these investments have raised alarms. AidData’s research uncovered $200 billion in U.S.-bound loans funneled through shell companies in the Cayman Islands, Bermuda, and Delaware to obscure their origins . A significant portion of these funds supported Chinese acquisitions of stakes in American firms tied to critical technologies, including robotics, semiconductors, and biotechnology. Former White House investment adviser William Henagan described this as “chess while the rest of us were playing checkers,” warning that the opaque lending network grants China leverage over U.S. technological capabilities .

This trend is not limited to the U.S. The UK, Germany, Australia, and the Netherlands have also received substantial Chinese loans—$600 billion, $161 billion, and $54 billion respectively—raising questions about how these funds are allocated. The report notes that China’s “Belt and Road” initiative, long associated with infrastructure financing in developing economies, has seen reduced lending to Global South projects. Instead, Beijing is prioritizing investments in advanced economies to strengthen supply chains in artificial intelligence, clean energy, and semiconductors .

The dual nature of China’s lending strategy—combining infrastructure development with strategic technology acquisition—has prompted scrutiny from policymakers. While U.S. officials have historically criticized Chinese loans for creating “debt traps,” the U.S. itself has become a major beneficiary of Beijing’s credit. This paradox underscores the complexity of global economic interdependence, where strategic interests and financial flows often intersect in unpredictable ways .