China’s lending volumes in developing countries far surpass those of other bilateral creditors and compare in scale only to World Bank lending practices. Where World Bank lending terms, volumes, and policies are publicly available, the state of knowledge on official Chinese financing terms remains limited due to a lack of official transparency. To better understand the nature of official Chinese lending and its relationship to the debt capacity of borrowing countries, researchers and policymakers need to look beyond the total volume of lending and pay more attention to concessionality, or the extent to which loans are offered at belowmarket rates. Financing offered on concessional terms (low interest rates, long maturities, and extended grace periods) reduces the likelihood of a debt crisis in borrower countries.