Belt and Road Initiative brings growth instead of debt: MOFCOM

Updated: December 24, 2018 Source: Global Times
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A senior Chinese trade official on Saturday rebutted recent media reports that China's Belt and Road Initiative (BRI) has increased the debt of countries and regions along the routes, saying such accusations are "groundless" and that initiative has brought opportunities for growth to locals.

Chu Shijia, a senior official with China's Ministry of Commerce (MOFCOM), said at a national commerce conference held in Beijing that debt is a universal problem that exists in many countries around the globe and that debt in some BRI countries and regions is also a historical issue that has persisted for many years."It can be said that debt problems and the construction of the BRI are not necessarily related," he noted.

Some countries had high debt levels in the past and their creditors are mainly other countries and some international institutions, the official said, adding that "it has been five years since BRI was proposed, how can debt that has long existed be connected to the initiative?"

In the spirit of mutual cooperation, China has offered financial support to countries and regions along the BRI, which is based on the principles of extensive consultation and the rule of law, joint effort, shared benefits and equal opportunities for all, Chu noted.

Accusations in the global market that BRI has increased debt in countries and regions along the routes are groundless, he noted.

While some countries and regions have accrued debt owed to China during the construction of BRI projects, the level and scale of these debts are within a controllable range, the official said. For example, recent media reports said that Pakistan's debt owed to China has increased, but the fact is that 42 percent of the country's long-term debt is owed to multilateral lending institutions and the portion from China only accounts for 10 percent, he said.

Capital is the lifeline of economic activities and is essential for developing countries to achieve growth. Some African countries can borrow no more than one third of capital in a year they need to build infrastructure, Chu noted, adding that taking on moderate debt can be beneficial but only if debt levels can be controlled.

The BRI has brought hope and development to countries and regions along the routes instead of burdens, Chu said.

Due to underdeveloped conditions in some areas of Asia, Africa and even Europe, many companies around the world are unwilling to invest in them, but Chinese firms have done so, bringing capital, technology, markets and information in a bid to advance their growth, he said.

Chinese companies have helped them build infrastructure and drive local economic growth, he said. "The BRI is being welcomed by more and more countries and regions."

Editor: 曹家宁