Ambassador Lu Shaye publishes a signed article "China's 'Debt Trap' Is a Myth"
On September 24, The Hill Times published a signed article by Ambassador Lu Shaye titled "China's 'Debt Trap' Is a Myth". Here is the full text:
Recently, some Western media are hyping up the so-called "China's debt trap", claiming that by providing a large amount of loans to some African and Asian countries and Pacific Island countries, China attempts to gain control over resources, infrastructures and even sovereignty of those countries once they are gripped by debt plight due to their inability to repay the loans. This proposition, while sounds so imaginative, is utterly groundless and irresponsible. And the truth is that, among China's partners, no country is beset with a debt crisis because of the co-operation with China.
For years, China has been providing within its capacity some assistance to developing countries in Africa and Asia and on Pacific islands in the framework of South-South cooperation. In addition to non-reimbursable assistance, China has also provided various forms of loans to these countries, including interest-free loans, concessional loans and so on.
It should be emphasized that the loans work on certain principles. First of all, the relevant Chinese loans have no political strings attached. China never interferes in the internal affairs of the recipient countries, and fully respects the development paths and modes of their own choice. Second, China fully respects the will of governments of the recipient countries. By funding those countries' infrastructure and other areas that lag behind for short of money, China, on the basis of their specific needs, has helped them break bottlenecks, enhance their capacity for independent development, so as to realize their economic and social sustainable development. Third, China always bears in mind the debt-paying ability and solvency of recipient countries, avoiding causing too much debt burden to recipient countries. All relevant projects have been conducted with thorough feasibility studies and market research, so that they deliver the desired economic and social benefits.