Whilst the imperialist countries have ensnared countries of the Global South in ‘debt traps’ for decades, something that the late Cuban communist leader, Fidel Castro drew forceful attention to as far back as the 1980s, they have also in recent years determinedly tried to smear the People’s Republic of China by leveling the very charge of which they have themselves long been guilty. Needless to say, this is strongly refuted by the countries of the Global South themselves as it is without foundation.
The following article, which we reprint from Global Times, reports the views of some senior Beijing-based diplomats, part of a more than hundred person group who recently visited the China Communications Construction Group, a leading Chinese company engaged in Belt and Road Initiative (BRI) projects.
According to the diplomats, these projects have improved local livelihoods, created jobs and promoted local economic development.
South African Ambassador Siyabonga C. Cwele noted that infrastructure projects in his country have to go through public tendering and a transparent procurement process with stringent requirements. In his view, Chinese companies tend to be better because they come with financing, skills and innovation and tend to complete projects on time. “What causes debt problems is that projects are not completed on time,” he notes.
Sri Lanka’s Deputy Chief of Mission, K.K. Yoganaadan, remarks: “If you take Sri Lanka’s total debts, only 10 percent is owed to China and 90 percent of our debts are owed to other bilateral partners and multilateral agencies.” Noting that China is already helping and supporting Sri Lanka to resolve its debt problem, he added: “We are very confident and hopeful that these BRI projects will help us improve Sri Lanka’s foreign exchange income and attract more foreign investors.”
Foreign diplomats refuted the “debt trap” hyped by some Western media on Chinese overseas projects, asserting those infrastructure projects have improved local livelihoods, created jobs and promoted local economic development.
Western media hyping the “debt trap” of Chinese projects is “fake news,” Moin ul Haque, Ambassador of Pakistan to China, told the Global Times on Monday. “We don’t subscribe to such a characterization of China-Pakistan cooperation, which is based on our mutual support and respect and win-win,” said Haque.
The interview was conducted during a group visit to China Communications Construction Group (CCCC), one of the major Chinese companies that participates in the China-proposed Belt and Road Initiative (BRI). The group visit gathered 111 diplomats from embassies and international organizations in China.
Haque noted that BRI and China-Pakistan Economic Corridor projects have greatly contributed to changing the economic landscape in Pakistan in infrastructure development and industrialization.
Asked about his opinion on Western reports saying China’s projects brought “debt traps” to host countries, Siyabonga C. Cwele, South African Ambassador to China, told the Global Times that “we don’t see it that way. We see it as a win-win situation with China, and with mutual respect.”
Cwele said that the construction of infrastructure projects has to go through public tendering and transparent procurement process in South Africa, and they have stringent requirements.
“Chinese companies tend to be better in project execution in our view, because they come with their financing, skills and innovation, so they tend to complete their projects on time. What causes debt problems is that projects are not completed on time,” said Cwele.
He took two power plants under construction in South Africa as an example – projects that weren’t undertaken by Chinese companies. “Those projects had a lot of problems and cost escalations. That’s what caused problems, because that’s where debt starts.”
Speaking about the so-called “debt trap”, K. K. Yoganaadan, deputy chief of the mission of the Sri Lankan Embassy in China, said: “actually, this is a term that I don’t know who invented. Some interested groups use the term for their own propaganda.”
“If you take Sri Lanka’s total debts, only 10 percent is owed to China and 90 percent of our debts are owed to other bilateral partners and multilateral agencies,” Yoganaadan told the Global Times.
Yoganaadan noted that China is already helping and supporting Sri Lanka in resolving its debt problem, which is appreciated.
“We are very confident and hopeful that these BRI projects will help us improve Sri Lanka’s foreign exchange income and attract more foreign investors,” said Yoganaadan.
“The ‘debt trap’ is not a problem caused by Chinese companies. Solving the debt problem is a process that needs to be negotiated by everyone,” Chen Zhong, vice general manager of CCCC, told the Global Times on Monday.
China’s Foreign Ministry said on Monday that China attaches importance to the debt issue of developing countries and has made positive contributions to easing their debt burdens and promoting sustainable development, in response to the solution of Zambia’s debt problem.Commercial creditors and multilateral financial institutions, which mostly are from the West, account for 70 percent of Zambia’s external debt, according to figures disclosed by Zambia’s Ministry of Finance.”They should shoulder their responsibilities and take stronger action to ease Zambia’s debt burden,” said Mao Ning, a spokesperson of the Foreign Ministry, said on Monday.
Diplomats on Monday also said that, apart from current cooperation with China, mostly under the BRI, there is huge room for further cooperation.
According to Pakistani Ambassador to China Haque, in the coming years, the focus will be on industrialization in export-oriented sectors such as automobiles, engineering, goods, mining, petroleum and agricultural modernization.”China is now a leading country and we are focusing on cooperation in technology innovation like artificial intelligence,” said Haque
.South African Ambassador Cwele said that the country is most concerned about infrastructure and green development.”Cooperating with Chinese companies in the field of green development is going to be good,” he said.
According to Cwele, South Africa accounts for about 40 percent of Africa’s industrial output, and it requires modernization and new technologies.
“The key is digitizing our economy. That’s where we hope cooperation with China and Chinese companies will bring win-win results for our people,” said Cwele
.As for Ali Obaid Al Dhaheri, Ambassador of the United Arab Emirates to China, “areas of science and technology development” will be a direction of future cooperation.”We pay a lot of attention on advancing … the digital economy and in China, you are highly developed in this area. Based on this, I have no doubt it will be a great opportunity to cooperate in the area of technology sharing,” Dhaheri told the Global Times on Monday.
I wholeheartedly support this article with this observation that the term debt trap is a misnomer so far as China BRI is concerned, and that the BRI projects in Africa, Asia and Latin America are most transparent, environment – friendly based on win- win cooperation. Actually, the developing nations suffer from the debt trap of the US & EU – led companies who impose political and financial strings with huge interest burden on the projects. The coinage of debt- trap by the West and supported by Indian media is to smear China and contain China’ s friendly investments in the Third World based on world tender and WTO rules.