CCAC: The trap of Chinese loans creating "hidden debt" is a completely false proposition

Yu Xiaoqing, senior reporter of The Paper

On October 26, the Information Office of the State Council held a press conference, at which Luo Zhaohui, director of the China International Development Cooperation Agency, and Zhang Maoyu, Zhou Liujun, and Deng Boqing, deputy directors of the Bureau, introduced China's anti-epidemic assistance and international development cooperation, and answered reporters' questions. This is also the first time that the China International Development Cooperation Agency has held a press conference in more than three years since its establishment. Some reporters asked questions about China's foreign aid and the debt problem of African countries.

Zhou Liujun, Deputy Director of the China International Development Cooperation Agency (Photo by Xu Xiang)

Zhou Liujun, deputy director of the China International Development Cooperation Agency, said that Africa's debt problem has attracted much attention, which is a long-standing historical legacy, and the causes are very complex, including changes in the international economic environment, as well as external reasons such as the rise of trade protectionism and the appreciation of major reserve currencies. In the past two years, Africa's debt problem has become more prominent due to the impact of the new crown pneumonia epidemic. China has always attached great importance to the debt pressure faced by African countries, and we have always respected Africa's wishes in financing cooperation with Africa and based ourselves on the needs of African parties. When providing interest-free loans and preferential loans, we fully consider the debt situation and repayment capacity of African countries' recipient countries, adhere to laws and regulations, be open and transparent in our work, and never seek political private interests.

Zhou Liujun said that in the process of cooperation with Africa, we uphold the correct concept of righteousness and interests and the concept of true and sincere cooperation, and deal with issues such as lending and debt relief to Africa through friendly consultation. China and Africa share a common destiny and shoulder to shoulder to cope with the difficulties caused by the epidemic. President Xi Jinping, together with the leaders of relevant African countries, jointly held a special summit on China-Africa solidarity against the epidemic, announcing a series of important measures such as supporting the development of relevant African countries, debt relief and debt reduction. China has actively promoted and fully implemented the G20 Debt Relief Initiative, and has signed or reached consensus with 19 African countries to cancel all African least developed countries, heavily indebted poor countries, landlocked developing countries and small island countries of interest-free loan debt due by the end of 2020.

Zhou Liujun pointed out that in the final analysis, the solution of Africa's debt problem depends on development, and development is the key to solving all problems. It is necessary to enable African countries to enhance their capacity for independent development and achieve sustainable development. China-Africa cooperation has always been a benchmark for South-South cooperation and is also recognized as a model for international cooperation with Africa. According to our incomplete statistics, China has built more than 6,000 kilometers of railways, more than 6,000 kilometers of roads, nearly 20 ports, and more than 80 large-scale power facilities in Africa. This is in response to a Chinese saying, "To get rich, build roads first", which has injected impetus into Africa's economic development. We have also supported more than 130 medical facilities, 45 sports venues and more than 170 schools. During the epidemic period, many Chinese engineers and technicians still stuck to their posts in Africa to ensure the safe operation of key China-Africa cooperation projects and provide strong support for African countries to resume work and production.

In conclusion, Zhou Liujun stressed that the African debt problem has attracted much attention, and there are also some different discussions and views of various parties. At the same time, we have noticed that in recent years, some media have speculated that Chinese loans have created a "hidden debt" trap. I can tell you unequivocally that this is a completely false proposition, and that many Governments, experts, scholars, and research institutions in Western and Asian and African countries have conducted a thorough investigation into it, and not a single developing country has fallen into a debt trap because of Chinese loans. Facts and figures also fully expose that the statement that "China has created an African debt trap" is entirely for political purposes and intends to separate China-Africa friendly and cooperative relations. I think that the african governments and ordinary people who have the most say in China's support for Africa are the African governments and ordinary people.

Editor-in-charge: Hu Zhenqing

Proofreader: Shi Gong