Daily Management Review

China Deems The Claim Of A US Debt Trap "Irresponsible"


China has criticized U.S. Treasury Secretary Janet Yellen's comments as "irresponsible" and "unreasonable" after she claimed Beijing's lending practices leave developing nations "stuck in debt."
On Wednesday, Yellen expressed her concern over some of China's international actions, particularly its financing to developing nations. In a hearing, she informed US lawmakers that Washington was making a concerted effort to undermine China's influence in international organizations and in the loans to developing countries.
China has lent hundreds of billions of dollars to finance the construction of infrastructure in developing nations, but lending has decreased significantly since 2016 due to the failure of numerous projects to generate the anticipated financial returns.
"I am 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," Yellen said on Wednesday.
The Chinese government responded by claiming that the United States was to blame for the global debt crisis because of what Beijing dubbed a "unprecedented rate" of interest rate increases by the U.S. Federal Reserve.
"We do not accept unreasonable accusations from the United States," Chinese Foreign Ministry spokesperson Mao Ning said in a news briefing on Thursday.
"The United States should take practical actions to help developing countries, instead of pointing fingers at other countries and making irresponsible remarks," Mao added.
China claims that it has always adhered to international law and conducted open and transparent financing and investment cooperation with developing nations.
Between 2008 and 2021, China paid $240 billion bailing out 22 developing nations, with the amount rising recently as more have had difficulty repaying loans used to build the "Belt and Road" infrastructure.
China has come under fire for delaying debt restructuring negotiations with nations including Zambia, Ghana, and Sri Lanka. It has responded by requesting debt relief from the World Bank and International Monetary Fund as well.