Why a Chinese bailout for Pakistan may not be politically viable for Xi

Distressed emerging markets are looking to China for help as their currencies wilt

China’s willingness to extend credit has transformed it into the best friend of emerging markets. But there are reasons to believe the flow of easy money may suddenly dry up — just as distressed economies from Argentina and Venezuela to Turkey and Pakistan look to Beijing for a lifeline that would be less onerous than an International Monetary Fund bailout.

In the last decade, China made more than $62 billion of loans to Venezuela, where hyperinflation prompted the government to devalue the bolivar by 95 percent at the weekend. In July, another $5 billion advance was approved to increase petroleum output