Another of the brothers,

It focuses primarily on developing country infrastructure projects like power plants, roads and ports, which struggle to receive financial backing from Western financial institutions.The BRI has turned China into the largest global supplier of bilateral loans, peaking at about $50bn in 2016 – more than all Western creditors combined.

According to the Lowy report, however, paying off these debts is now jeopardising public spending.“Pressure from Chinese state lending, along with surging repayments to a range of international private creditors, is putting enormous financial strain on developing economies.”High debt servicing costs can suffocate spending on public services like education and healthcare, and limit their ability to respond to economic and climate shocks.

The 46 least developed countries (LDCs) spent a significant share – about 20 percent – of their tax revenues on external public debt in 2023. Lowy’s report implies this will increase even more this year.For context, Germany used 8.4 percent of its budget to repay debt in 2023.

Lowy also raised questions about whether China will use these debts for “geopolitical leverage” in the Global South, especially with Washington slashing foreign aid under President Donald Trump.

“As Beijing shifts into the role of debt collector, Western governments remain internally focused, with aid declining and multilateral support waning,” the report said.However, endowments are subject to restrictions and donors decide how most of the endowment is spent. In Harvard’s case, donors decide where 70 percent of the annual endowment distribution is spent.

On May 22, the Trump administration revokedHarvard’s certification

to enrol any new foreign students. This move has beenOn Tuesday, the government