Despite what has been said in recent years about the over-indebtedness of those developing countries that have received development loans from China under the new Silk Road, Beijing’s investment in its ambitious plan is increasing significantly. The emphasis is mainly on high technology, batteries for electric vehicles and energy.

According to a related report from Shanghai Fudan University, China’s investment in all 147 New Silk Road countries reached $32.5 billion last year, up 63% year-on-year and recording the highest level since 2019.

The spending that led to the significant increase was primarily a joint plan by China’s Contemporary Amperex Technology, known as CATL, and the Mercedes-Benz Group to invest $7 billion in an electric vehicle battery plant.

This is the largest of the plans envisaged by the new Silk Road since 2013, when it was opened. Apart from the technology sector, China’s largest investment has been in the energy sector, which has funded a series of $9 billion worth of projects, mainly in the oil, gas and green energy sectors. Chinese companies have also signed agreements totaling more than $15 billion for projects in the energy sector, as well as agreements worth $12 billion for infrastructure projects, ports, highways and railroads.

The increase in investment does not change the fact that many problems remain in his colossal plan across the continents.

In general, however, the funds that Beijing has allocated for loans and investments in the multifaceted Silk Road project in 2022 decreased slightly compared to 2021, as Beijing’s lending to some countries, mainly in Africa, which either went bankrupt or requested a debt restructuring. Among them are Pakistan, which these days is negotiating with the IMF for a $6.5 billion support package, and Sri Lanka, which is also approaching an agreement to reschedule its debt. Thus, the total amount allocated by China in 2022 to Silk Road projects was $67.8 billion, slightly less than $689.7 billion in 2021.

Among the Silk Road countries, Hungary received the largest investment, followed by Saudi Arabia in second place and Singapore in third. In contrast, Russia, Angola, Sri Lanka, Nepal and Peru have not invested in construction projects. With regard to Pakistan in particular, China’s overall funding for the project fell by 34%, while its investment in sub-Saharan Africa also fell by two percent.

China’s investment surge does not change the fact that there have been and still are many problems in its colossal international investment plan on different continents. A plan that Chinese President Xi Jinping called “the plan of the century” in 2017.

Two Chinese development banks cut lending in both 2020 and 2021, according to a related review. Data from the research group Rhodium Group shows that the amount of loans provided by Chinese financial institutions under the Silk Road and placed in new trades in the past two years. years reached at least $52 billion. This is more than three times more than in the two immediately preceding years, which amounted to $16 billion.