US has warned others to avoid loans from Chinese state banks. But it’s the biggest recipient of all
November 17, 2025
A new report says China funneled billions in hidden loans to U.S. companies over the past quarter century, some targeting industries key to national security. The study by research lab AidData in Virginia said Chinese policy banks and state financiers channeled much of the $200 billion through offshore shell companies in the Cayman Islands, Bermuda and elsewhere in a way that masked the origins. The money was then used by Chinese companies to buy stakes in U.S. businesses. Those lenders answer to China’s central government and often lend to advance China’s strategic goals. The targets included a robotics maker, a semiconductor company and a biotech firm.