Part 5/8:
In 2023, the European Union recorded a considerable trade deficit of $387 billion with China, which equates to approximately one billion Euros entering China daily. The funds leveraged for the Nigerian railway project equate to just a fraction of these daily profits—showing that China has the capacity to finance infrastructure developments in the Global South without straining its domestic monetary policy.
Chinese banks have effectively positioned themselves to manage their offshore earnings by lending capital from their trade surpluses without directly impacting their domestic operations. This strategic leverage enables them to finance projects in regions such as Africa and South America, contributing to a more diversified international strategy.