China Refutes Groundless US Accusations of Debt Problem of Developing Countries: FM

By Global Times

Mar 30, 2023 11:33 PM

Foreign Ministry Spokesperson Mao Ning Photo: Ministry of Foreign Affairs

China does not accept the groundless accusations of the US saying that China's lending to developing countries is causing them to run into debt problems, the Foreign Ministry said on Thursday. 

"We do not attach any political conditions or seek any political self-interest. China has been helping developing countries ease their debt burdens and has made the biggest contribution to implementing the G20 Debt Service Suspension Initiative," Mao Ning, a spokesperson of the Ministry of Foreign Affairs, said on Thursday during a regular press conference.

China has always followed international rules and carried out investment and financing cooperation with other developing countries on the basis of openness and transparency, Mao said.

Her comment was a response to the remarks of US Treasury Secretary Janet Yellen, who said on Wednesday that the US is working hard to counter China's influence in international institutions and in lending to developing countries.

 "I'm very, very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don't promote economic development," said Yellen. 

Since 2022, the US has raised interest rates at an unprecedented rate, which has worsened the debt problems of relevant countries. The US should take concrete actions to help developing countries instead of pointing fingers at others, Mao noted.

World Bank statistics show that multilateral financial institutions and commercial creditors account for more than 80 percent of the sovereign debt of developing countries, which is their biggest source of debt pressure. 

Meanwhile, China has offered help to developing countries struggling with debt problems. For instance, China has already provided Sri Lanka with a letter supporting the sustainability of Sri Lanka's debt, expressing its willingness to extend the debt due in 2022 and 2023.

In 2021, China took action to re-channel $10 billion of its Special Drawing Rights to Africa through the IMF and waived 23 interest-free loans for 17 African countries that had matured by the end of 2021.

Global Times