China vows ‘bigger contribution’ in helping poor countries, with an emphasis on profitable infrastructure projects

China has deferred debt repayments worth US$1.3 billion for 23 countries as part of the Group of 20’s Debt Service Suspension Initiative

Former central bank governor dismisses foreign ‘conspiracy theories’ involving a Chinese government plot

Reading Time:2 minutes

A session titled “The 21st Century Maritime Silk Road: Islands Economic Cooperation Forum”, at the Boao Forum for Asia Annual Conference in China’s Hainan province. Photo: Xinhua

Published: 10:00pm, 20 Apr 2021Updated: 10:49pm, 20 Apr 2021

China is making it clear that it will honour the Group of 20’s debt-suspension scheme it endorsed last year, but Beijing is reluctant to respond to Western suggestions about debt restructuring for struggling developing nations.

While promising a “bigger contribution” in helping poor countries achieve financial sustainability, vice-minister of commerce Qian Keming said that China will focus on infrastructure projects that can generate returns for participating countries.

“We definitely didn’t force them to repay [maturing] debts. Instead, we did lots of work on adjusting their [loan] portfolios and repayment periods,” he said on Monday at a panel discussion on the financing of belt and road infrastructure.

China is a major source of funding for infrastructure developments via its Belt and Road Initiative. President Xi Jinping unveiled the grand infrastructure connectivity plan in 2013 that now connects more than 60 countries across Asia, Europe and Africa.

But the initiative has been either framed by Western countries as China’s Marshall Plan to project its political and economic influence, or described as a means of debt-trap diplomacy that keeps a tight grip on participating nations.

“If [a developing country’s] debts are restructured, their international financing could become more costly and difficult following the [downgrading of their] sovereign rating. How can they build new infrastructure? Will they still be eager for [economic] development,” Qian asked at Monday’s Boao Forum for Asia, a key platform for China to communicate its policies with international political and business leaders.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x