The Chinese national flag is seen in Beijing, China April 29, 2020.
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REUTERS/Thomas Peter

Anna Gelpern (PIIE), Sebastian Horn (Kiel Institute for the World Economy), Scott Morris (Center for Global Development), Brad Parks (AidData; Center for Global Development) and Christoph Trebesch (University of Kiel; Kiel Institute for the World Economy)

China is the world’s largest official creditor, but the terms of its loans to government borrowers are secretive. In the first systematic analysis of legal terms in China’s foreign lending, the authors uncover collateral arrangements designed to benefit Chinese lenders and confidentiality clauses preventing borrowers from revealing loan terms. State-owned lenders also insert terms allowing them to cancel the loan or accelerate repayment and prevent collective restructuring of debts.

The Peterson Institute for International Economics building is closed to staff and visitors until further notice. PIIE personnel are working remotely, with access to telephone messages.

Photo Credit: 
REUTERS/Thomas Peter