r/economy•
fool49

As US withdraws aid and imposes high tarrifs, on the rest of the world, China increases investment and construction, especially in the developing world

According to FT:

Chinese construction contracts and investments in BRI members totalled $124bn over 176 deals in the first six months of the year, greater than the total of $122bn for the whole of 2024, according to a study by Australia’s Griffith University and the Green Finance & Development Center in Beijing...

..."China’s energy-related engagement in 2025 was the highest in any period since the BRI’s inception,” the study said, adding that the value of such investment and construction contracts was highest in Africa at $39bn and Central Asia at $25bn.

According to fool49:

China shouldn't be deterred by foreign critics, who are envious of China's influence over the developing world. Even as EU imposes high carbon tarrifs on African imports, China welcomes trade with Africa. USA no longer promotes the Washington consensus, and free markets and free trade. As China now has low tarrifs, and promotes trade, with both the developed and developing world.

Instead of criticising China, developed regions like USA and EU, should increase foreign aid and investment, and increase trade, with developing regions like Africa and Asia. The developing world will be better of, with economic and cultural relations, with the most developed or richest regions of the world.

Reference: Financial Times

Posted Jul 17, 2025, 8:34 AM UTC

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