"most of its largesse comes as loans" These investments are not really Chinese government's money to give unless it wants to tax its people more. What Chinese

"most of its largesse comes as loans" These investments are not really Chinese government's money to give unless it wants to tax its people more. What Chinese government has is a very large sway over where Chinese external investments go since it requires exporters to sell their forex earnings and large outward investments require state approvals. But these investments are not taken from depositors as a tax. The depositors still have claims on the Chinese banks. What the Chinese government/banks do is really to provide a guarantee to the domestic depositors as intermediaries. If the investments go bad they will have to plug the financial hole somehow.