Kate Bullivant

So what's China doing to cut down on risk? For starters, let's look at who's doing the lending. Remember how we said in Episode 1 that in the early years of the programme, Chinese development banks were spraying money across the world to open new markets? Well, state-backed commercial banks are doing a lot more of the financing these days.

And they're spreading the risk around by teaming up with other lenders to underwrite loans, a practice called syndicated lending.

And they're spreading the risk around by teaming up with other lenders to underwrite loans, a practice called syndicated lending.

Wegen den Partnern, die Terme der Löhne haben sich selbst verändert. Beijing hat von Anfang an auf kommerzielle Terme gelendet, aber jetzt werden die Interessensrate dieser Löhne höher. Sie übertragen 4,2 Prozent, laut A-Data, was deutlich höher ist als die Kompetenzen. In der Zwischenzeit werden die Verlängerungsperioden kürzer.

Wegen den Partnern, die Terme der Löhne haben sich selbst verändert. Beijing hat von Anfang an auf kommerzielle Terme gelendet, aber jetzt werden die Interessensrate dieser Löhne höher. Sie übertragen 4,2 Prozent, laut A-Data, was deutlich höher ist als die Kompetenzen. In der Zwischenzeit werden die Verlängerungsperioden kürzer.

Und China setzt zusätzliche Sicherheitsmaßnahmen ein, um sicherzustellen, dass es nicht mit unerhörlichen Schulden verbunden ist, effektiv mehr Risiken für schwere Länder aufzunehmen.

Und China setzt zusätzliche Sicherheitsmaßnahmen ein, um sicherzustellen, dass es nicht mit unerhörlichen Schulden verbunden ist, effektiv mehr Risiken für schwere Länder aufzunehmen.

So China is becoming more careful with its money. But what is it actually investing in now? And have efforts to shield itself from risks linked to the Belt and Road paid off? We'll look into that after the break.

So China is becoming more careful with its money. But what is it actually investing in now? And have efforts to shield itself from risks linked to the Belt and Road paid off? We'll look into that after the break.

As China continues to adapt the Belt and Road, the types of projects it's investing in are changing too. In recent years, Beijing has been keen to highlight a shift away from massive infrastructure projects. All those dams, ports and highways at the center of Belt and Road 1.0. And instead is touting what it calls small and beautiful builds like solar and wind power facilities.

As China continues to adapt the Belt and Road, the types of projects it's investing in are changing too. In recent years, Beijing has been keen to highlight a shift away from massive infrastructure projects. All those dams, ports and highways at the center of Belt and Road 1.0. And instead is touting what it calls small and beautiful builds like solar and wind power facilities.

Brad Parks from Aid Data told me that while Beijing hasn't abandoned traditional larger scale projects, this rebrand is an answer to Beijing's evolving needs.

Brad Parks from Aid Data told me that while Beijing hasn't abandoned traditional larger scale projects, this rebrand is an answer to Beijing's evolving needs.

Those sorts of course corrections help the Belt and Road Program invest in the industries and supply chains that Beijing sees as the future. And, as we heard before the break, China has changed the way it cuts deals, charging higher rates and asking countries to put up more collateral.

Those sorts of course corrections help the Belt and Road Program invest in the industries and supply chains that Beijing sees as the future. And, as we heard before the break, China has changed the way it cuts deals, charging higher rates and asking countries to put up more collateral.

But as we talked about last week, China isn't, for the most part, going around the world grabbing collateral from countries that are struggling to repay their debts. So does this mean that China's portfolio is out of the woods? Could Beijing actually be about to reap a financial windfall as those loans start getting repaid? Here's what Brad had to say.

But as we talked about last week, China isn't, for the most part, going around the world grabbing collateral from countries that are struggling to repay their debts. So does this mean that China's portfolio is out of the woods? Could Beijing actually be about to reap a financial windfall as those loans start getting repaid? Here's what Brad had to say.

We reached out to China's Ministry of Foreign Affairs for comment on their debt portfolio and how many of their borrowers are insolvent. They didn't address this specifically, but they did say they provide developing countries financing at preferential interest rates and with longer maturities.

We reached out to China's Ministry of Foreign Affairs for comment on their debt portfolio and how many of their borrowers are insolvent. They didn't address this specifically, but they did say they provide developing countries financing at preferential interest rates and with longer maturities.

Up next we take a look at how all these changes to Belt and Road set up Beijing to continue gathering global influence. That's after the break. The jury is still out on whether China will take an economic hit from the Belt and Road.