# China writes off $50 million of Sudan's debt as civil war shrinks economy by 40 percent
> A protocol signed in Port Sudan on June 28 cancels four interest-free Chinese loans totalling 344.52 million yuan; Beijing's finance minister framed it as proof that China has kept investing in Sudan while Western governments pulled back, and the deal takes effect immediately

**Meta:** type: event · date: 2026-06-29 · heads: Whose Money, The Long Game · 4 takes · 3 lenses · 4 regions

## Summary

Sudan and China signed a debt-cancellation protocol in Port Sudan on June 28, under which Beijing wrote off four interest-free government loans totalling 344.52 million yuan, equivalent to roughly $50 million. Sudan's Finance Minister Gebreil Ibrahim and China's Chargé d'Affaires Xu Jian signed the agreement, which took effect immediately. The Central Bank of Sudan and China Development Bank are tasked with settling the affected accounts. Sudan's minister said China has continued to invest in Sudan throughout the civil war while Western governments have largely halted financial support.

## Why it matters

The gesture is small relative to Sudan's total external debt, estimated above $56 billion before the 2023 war, and dwarfed by the economic damage of a conflict that has shrunk Sudan's economy by roughly 40 percent. But it signals that Beijing is actively reinforcing its relationship with Sudan's military-led government at exactly the moment Western and Gulf creditors are withholding support, and it protects Chinese oil-field investments by signalling continued backing for Port Sudan's administration.

## Regional takes (batched by bias / lens)

### Netherlands-based independent Sudan broadcaster; earliest minute-stamped report on the signing, drawing from Sudan's official SUNA wire
- **Dabanga Radio TV Online** (Sudan, en) — Reported that Sudan's Ministry of Finance signed a protocol with China's chargé d'affaires Xu Jian to cancel four interest-free loans totalling 344.52 million yuan, effective immediately, with the Central Bank of Sudan and the China Development Bank tasked to settle related accounts.
  > "Sudan's Ministry of Finance has signed an agreement with China to cancel part of the country's debt, with Beijing agreeing to write off four interest-free loans worth a total of 344.52m yuan, equivalent to about $50m."
  Source: https://www.dabangasudan.org/en/all-news/article/china-forgives-50m-sudan-debt

### pan-Arab international; provided analysis on Beijing's strategic interest, noting China is Sudan's largest trading partner and has oil-field investments it wants to protect
- **Al Jazeera** (Qatar, en) — Reported the $50 million write-off and contextualised Beijing's motive: China holds oil-sector investments in Sudan threatened by the civil war's spread and is the country's largest trading partner, making stability in government-controlled Port Sudan directly relevant to Chinese commercial interests. Sudan's Finance Minister said Western governments had largely pulled back while China continued to engage.
  > "Sudan says China has waived a $50m loan at a moment when Khartoum has few other international lenders extending financial support."
  Source: https://www.aljazeera.com/news/2026/6/29/sudan-says-china-has-waived-50m-loan-whats-in-it-for-khartoum-beijing

### unlabelled
- **North Africa Post** (Morocco, en) — 
  Source: https://northafricapost.com/98411-china-cancels-50-million-of-sudans-debt-as-economic-crisis-deepens.html
- **Ecofin Agency** (Belgium, en) — 
  Source: https://www.ecofinagency.com/news/3006-56910-sudan-china-sign-protocol-to-cancel-50-million-in-interest-free-loans

## Across the graph
- Related: [[sudan-famine-displacement-crisis]], [[sudan-rsf-banknotes-jun25]]
- Entities: China, Sudan

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