How Will China Respond to Global Debt Crisis?

Panda Paw Dragon Claw posted on 21 June 2020 a commentary titled "How Will China Handle Multiple Debt Repayment Crises?" by Ma Tianjie. 

As global demand for commodities such as oil and minerals collapses, the revenue streams of exporter countries, many of which are located in Africa, have dried up.  This has led to a growing debt crisis in Africa where China holds between 17 and 20 percent of all external debt. 

President Xi Jinping pledged to write off all zero-interest loans owed to China by African countries that are due this year.  But these loans make up less than 5 percent of China's lending to Africa between 2000 and 2018.

China may not have the luxury to review its overseas lending stock on a loan-by-loan, country-by-country basis as it seems to prefer.  The debt tsunami is on its way and how China manages the challenge will be a key test of its international diplomacy, understanding of global finances, and the future of the Belt and Road Initiative.