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Q: Will other countries repay China's "loans" on demand?
Reading some of the comments on this board and other boards, many of the Chinese posters seem to believe that money China has invested in other countries, as well as loans to third world countries, must be repaid on demand.
Given that China is in desperate need of cash, is it possible they will start making such demands, and if so, what will be the responses from other countries?
10 years 41 weeks ago in Money & Banking - China
Even if they could repay the money this will make the inflation rate skyrocket, nothing good will come out of it.
Scandinavian:
can you explain how payback of loans impact inflation ? you mean inflation in China right ?
angelina8:
Yes, I mean inflation in China. The loans are made in US dollars, if more dollars come to China all of a sudden, the Chinese Central Bank will have to print more yuan to keep the exchange rate favorable, more yuan, thus higher inflation. It's already messy.
Don't take what I say as a professional analysis, I'm bored 
Traveler:
Scan: Angelina could be sort of right. China's strategy to inject more cash into the economy was to print more money. Half the money being printed in the world is in China. Obviously, this adds to inflation.
Their newest bright idea is to call in foreign debt. However, if those countries don't pay, then perhaps they will go back to printing more money. Or seizing foreign assets in China.
3rd world countries can out china china. they could just ignore the loans
They might look within the four corners of their agreement and inform China that they have every intention of repayment as previously agreed.
Traveler:
I'm also guessing that will happen as well, but it will not be satisfactory for China. China seems to have no problem with unilaterally redefining the terms of contracts in China's favour.
bill8899:
Yes they have a notoriously cavalier attitude towards anticipatory breach and repudiation, but the other party may simply stand firm.
If I owe you $1,000, I have a problem. If I owe you $1,000,000, then YOU have a problem.
Interesting things happen when despotic regimes confront despotic regimes.
At any rate, I doubt it will come to that.
Could this possibly be the world pissing back on China? This my friends, is going to get ugly.
