FNI holds inaugural first EconSecurity Talks webinar with Dr. Parks on China's foreign lending
On June 25, 2021, the Foundation for the National Interest launched its newest webinar series titled EconSecurity Talks. For the very first installment of the webinar series, FNI invited Dr. Bradley Parks, Executive Director of AidData at the College of William & Mary, to discuss China's foreign lending contracts with other countries.
The first EconSecurity Talks Webinar discussed the AidData team's recent publication on the features of China's 100 foreign lending contracts all over the world. The study spearheaded by Dr. Parks' team found that, firstly, Chinese contracts are heavy with confidentiality clauses that compel borrowers to deny the existence of any contracts with Chinese lenders. Secondly, Chinese contracts do not allow for collective debt restructuring through collateral arrangements (so called "no Paris Club" clauses). And lastly, cancellation, acceleration, and stabilization clauses renders borrowing countries' foreign and domestic policies susceptible to Chinese influence. Taken together, this affects a country's sovereign debt and limits debt crisis management options.
Results of the study done by AidData is publicly available and may be accessed here.
The event was attended by individuals from the academe, government, and the private sector.