China's Foreign Minister Qin Gang has scoured US attempts to dissuade the African Union (AU) from dealing with China by setting up malicious debt traps. Recently the AU has rejected Washington and the EU with its attempts to woo it, as the continent has leaned to China, prompting attempts to discredit Beijing.
Chinese FM Qin Gang Called Out Claims of Debt Traps
According to the Chinese FM, who blasted Washington, saying the money lent to African nations is not to indebt it to Beijing, reported Al Arabiya.
Qin explained his country's help in improving the African people's lives; he got an interview in Ethiopia, where the headquarter of the AU was last Wednesday. It is his first trip, and he called the dept trap to claim a lame attempt to besmirch China's credibility.
Based on the London-based international affairs policy institute Chatham House, China is among the largest lenders on the continent, carrying a 12 percent market share of the roughly $700 billion in externally outstanding debt in Africa. Among the borrowers are Zambia and Ghana, both of which have missed a payment on their existing debt. Nevertheless, its financing has bankrolled infrastructure growth in several African nations, noted BNN Bloomberg.
Qin commented on World Bank data, denoting that multilateral lenders represent approximately three-quarters of Africa's foreign debt and should do more to remedy liquidity problems.
Paris-based Finance for Development Lab, Sub-Saharan Africa's external debt-servicing expenses could increase by 50 percent from 2019 levels by 2026; an estimated 18 of Africa's 54 nations may struggle to repay what they borrowed. He commented on World Bank data stating how multilateral lenders makeup about three-quarters of Africa's external debt and also should do more in seeking resolution of their payment issues.
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Sub-Saharan Africa's external debt-servicing expenses can go up to 50 percent by 2026 from 2019 levels; about 18 of Africa's 54 nations would have a hard time paying what they borrowed, mention the Paris-based Finance for Development Lab.
Stated that the US and China must resolve their differences as the biggest economies and are the two superpowers. Made it clear that the competition would not benefit them, calling the attitude of the US counterproductive. But he made it clear to the US and its allies that they have no right to force or co-opt the African nations to become their vassals or force them to side with anyone.
Qin said the continent is for cooperation for all nations, not a source of resources for the western countries. He is on a tour of Gabon, Angola, Benin, and Egypt on his trip as he starts his stint in the position.
Chinese Foreign Minister's First Diplomatic Tour
As declared last Monday, Qin will be traveling for a week to tour five separate African countries, per AP News.
He was previously an envoy to the United States and visited Ethiopia, Gabon, Angola, Benin, and Egypt from January 9 to 16, as said by Wang Wenbin, a representative for the Chinese government. Qin would also meet with the Arab League Secretary-General in Egypt.
The US is trying to secure Africa's support, but it is not going well. China is a trading partner, an investor in infrastructure, and an investor in mining projects.
Chinese Foreign Minister made clear the US failure to entice the African Union is one of the reasons why debt traps have been brought up.
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