Sovereign Debt

The Effects of Sovereign Debt: China’s Non-Developmental and Non- Concessional Aid

The international community has many doubts about China’s opaque financial aid, and their critiques mainly lie in the differences in aid between China and traditional aid donors. However, there is little empirical research on whether China is contributing to the accumulation of sovereign debt. The most controversial issue is that China’s foreign aid cannot be categorized in accordance with the traditional definition of ODA. The purpose and conditions underlying China’s foreign aid have many commercial overtones.

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