Passage 1
China's cautious approach to foreign borrowing is to be maintained, at least for the time being. The debt problems confronting a number of developing countries have reinforced China's determination to introduce foreign technology by mea

Passage 1
China's cautious approach to foreign borrowing is to be maintained, at least for the time being. The debt problems confronting a number of developing countries have reinforced China's determination to introduce foreign technology by means of direct investment and concessionary finance rather than by raising substantial sums of money on the international capital markets. Foreign investment is advantageous insofar as it facilitates the transfer of technology and skills and avoic creating an overhang of debt. The authorities do not consider it appropriate to incur large amounts of extemal debt until a number of practical bottlenecks in the economy, such as an inadequate transport network and energy constraints, have been tackled. China's access to substantial sums of money from the World Bank also reduces the need to borrow on commercial terms.

Why does China prefer loans from the World Banky

China borrows from the World Bank for lower interest rates and other favorable conditions.