On Thursday, China responded to comments made by US Treasury Secretary Janet Yellen, criticizing her remarks as “irresponsible” and “unreasonable.”
Yellen had expressed concern about China’s global lending activities, which she claimed were leaving developing countries burdened with debt.
During a hearing with US lawmakers on Wednesday, Yellen stated that Washington was committed to countering China’s influence in international institutions and lending to developing nations.
China has invested billions of dollars in infrastructure projects in developing countries, but the returns on these investments have fallen short of expectations, causing a decrease in lending since 2016.
“I am very, very concerned about some of the activities that China engages in globally, engaging in countries in ways that leave them trapped in debt and don’t promote economic development,” Yellen said on Wednesday.
In response, the Chinese government on Thursday said the debt problems of the world were made worse by the United States due to what Beijing called an “unprecedented rate” of interest rate hikes by the US Federal Reserve.
“We do not accept unreasonable accusations from the United States,” Chinese Foreign Ministry spokesperson Mao Ning said in a news briefing on Thursday.
“The United States should take practical actions to help developing countries, instead of pointing fingers at other countries and making irresponsible remarks,” Mao added.
According to a recently published study, China has spent $240 billion bailing out 22 developing countries from 2008 to 2021, in compliance with international regulations and with transparency.
However, more countries have been struggling to repay loans spent building “Belt and Road” infrastructure, leading to an increase in the amount spent in recent years.
Debt restructurings are being negotiated with countries such as Zambia, Ghana, and Sri Lanka, but China has been accused of causing delays. As a solution, China is urging the World Bank and International Monetary Fund to provide debt relief as well.
