China's growing debt holdings in Global South raise concerns about potential "debt trap" and impact on US dollar.

China's increasing economic influence in the Global South raises concerns about its potential to leverage debt holdings for political power, termed a "debt trap." As the largest creditor to developing nations, China's actions could threaten the U.S. dollar's dominance, particularly with its role in BRICS+. The U.S. faces challenges from its rising public debt, exceeding $33.4 trillion, and China's recent sell-off of $600 billion in U.S. bonds, prompting fears about the dollar's future stability.

October 21, 2024
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