‘Face your own debt,’ China tells US over Zambia debt relief

‘Face your own debt,’ China tells US over Zambia debt relief
‘Face your own debt,’ China tells US over Zambia debt relief

The Chinese government has said the United States should stop pressuring Beijing for Zambian debt relief and focus on preventing a government default at home, which could have repercussions on the country. ‘Mondial economy.

“The greatest contribution the United States can make to debt problems outside the country is to face up to its own debt problem and stop sabotaging the active efforts of other sovereign countries to solve their problems. of debt,” the Chinese embassy in Zambia said in a statement. Tuesday.

The US government has a $31.4 trillion cap on how much it can borrow, and it hit that limit on Thursday.

US Treasury Secretary Janet Yellen put in place “extraordinary measures” to ensure the US government could continue to pay its bills in the short term, then traveled to Africa. During a visit to Zambia, she said it was crucial to tackle its heavy debt burden to China.

The country failed to make a bond payment of $42.5 million in November 2020, becoming the first sovereign country in Africa to default during the COVID-19 pandemic.

“It’s already taken far too long to resolve this case,” Yellen said Monday.

Washington is trying to woo African nations as the influence on the continent of its rivals, Russia and China, grows.

During his visit to Africa, which also included Senegal and South Africa, Yellen pushed to expand trade and commerce relations with the United States.

“The United States is all about Africa and with Africa,” Yellen said Friday in Dakar, touting the fruits of a new “mutually beneficial” US economic strategy toward Africa.

In responding to Yellen, China focused on the battle between Republican lawmakers and Democratic President Joe Biden’s administration over raising the US debt ceiling to allow more borrowing to keep the government going.

“Even if the United States ever solves its debt problem, it is not qualified to make groundless accusations or pressure other countries out of selfish interest,” the statement from the Chinese Embassy said. .

Chinese development banks have become the main lenders to poor countries around the world for natural resources, transport and power projects, although such lending has declined sharply and steadily since 2016, according to the Global Development Policy Center of China. ‘Boston University.

New loan commitments fell to eight projects worth $3.7 billion in 2021 from a peak of 151 projects worth $80 billion in 2016, according to data compiled by the center.

Currently, 22 low-income African countries are either already in debt distress or at high risk of debt distress, according to UK-based Chatham House. Chinese lenders account for 12% of Africa’s private and public external debt, which has increased more than fivefold to $696 billion between 2000 and 2020.

Washington has repeatedly expressed concerns in recent weeks about Beijing’s alignment with Moscow as Russia carries out its invasion of Ukraine.

Russian President Vladimir Putin said in December that he expected his Chinese counterpart, Xi Jinping, to visit in 2023. If it were to take place, the visit would be a public show of solidarity during the war in Ukraine.

Foreign Minister Wang Yi defended China’s refusal to condemn the invasion of Ukraine and suggested in December 2022 that the country would deepen its ties with Russia in the coming year.

He also blamed the United States for deteriorating relations between the world’s two largest economies, saying Beijing had “firmly rejected” Washington’s “misguided China policy” of pressuring trade and technology and criticize China on human rights and its claims to a wide range. of the Western Pacific.

. face your own debt says China to United States topic debt relief Zambia news business economy

. Face debt China tells Zambia debt relief

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