China refutes U.S. 'debt trap' claim, saying intl creditors account for that

A spokesperson for the China International Development Cooperation Agency (CIDCA) refuted the U.S.'s 'debt trap' claim on Thursday, saying no partner countries say that China has led them into a "debt trap," and Western-dominated commercial creditors and multilateral financial institutions account for a big chunk of the debt held by developing countries.

"China attaches great importance to the debt issue facing developing countries. We have followed the principle of consultations on an equal footing and mutually beneficial cooperation to help developing countries ease their debt burdens and grow their economies sustainably," CIDCA spokesperson Li Ming said in a statement posted on the bureau's website, adding "no country has fallen into debt difficulty because of cooperation with China, and no partner believes that China has led them into a debt trap."

The comment came after U.S. officials alleged during a recent congressional hearing that Chinese aid has resulted in a "debt trap," and the Safe City project disregards human rights and fuels corruption.

"The U.S. accusations are untenable," said Li. He stated that, while offering loans at favorable terms, China adheres to the principle that recipient countries put forward demands and they agree with the terms.

Noting China's loans and cooperative projects have helped partner countries improve their economic growth, the spokesperson cited a report by the World Bank which shows that the full implementation of China's Belt and Road Initiative could increase trade among participants by 4.1 percent and increase global real income by 0.7 to 2.9 percent. By the year 2030, this initiative will generate business revenue of $1.6 trillion around the world every year, the data shows.

The truth is, some Western-dominated commercial creditors and multilateral financial institutions that hype the "Chinese debt trap" narrative account for a large share of developing countries' debt and represent a major source of stress in terms of debt repayments. They should make real contributions to help ease the debt burdens of developing countries, the spokesperson said.

He added that China has established a supervision and evaluation system for foreign aid programs, and work such as supervision, evaluation and anti-corruption runs through the entire process of overseas assistance.

As for the China-assisted Safe City project, Li said it is aimed at helping developing countries establish modern security systems and providing effective services to increase protection for local residents and foreign tourists, and has won acclaim from locals.

"In contrast, the U.S. is engaging in massive, indiscriminate eavesdropping and data theft across the world. The U.S. not only manipulates public opinion domestically but also intervenes in other countries' internal affairs by taking advantage of its digital hegemony, which infringes on the privacy of the peoples of all countries, including foreign leaders," the spokesperson said.

China's foreign assistance has no political strings attached, nor has it forced others or made empty promises. It is hoped that the U.S. will abandon its Cold War mentality and hegemony so as to return to the original purpose of foreign aid for global development, the spokesperson noted.

"We are willing to join hands with all parties including the U.S. to strengthen communication and cooperation in the development field so as to promote every country's prosperity with action," the spokesperson said.