China: ‘No developing country will fall into debt trap’

BEIJING - China's foreign ministry said on Sunday that no developing country would fall into a debt trap simply because of its cooperation with Beijing.Chinese foreign ministry spokeswoman Hua Chunying made the comment in an online statement responding to remarks made by US vice president Mike Pence."No developing country will fall into debt difficulties because of cooperation with China," Hua said."On the contrary, cooperating with China helps these countries raise independent development capabilities and levels, and improves the lives of the local people."Speaking at the Asia Pacific Economic Co-operation (APEC) summit on Saturday, Pence took aim at China's Belt and Road initiative, saying countries should not accept debt that compromised their sovereignty.Tonga has signed up to China's Belt and Road initiative and has received a reprieve from Beijing on the timing of debt payments shortly before an onerous schedule to repay loans was due to start.Tonga is one of eight island nations in the South Pacific that owe significant debt to China. The deferment came just as Tonga was set to commence principal repayments on the debt, which is expected to put severe strain on its finances.Tonga's financial reliance on China dates back just over a decade after deadly riots in the capital of Tonga, Nuku'alofa, destroyed much of the small Pacific nation's central business and government districts.The government rebuilt the city with Chinese financing, and the roughly US$65 million in China's initial loans to the island now exceeds US$115 million, due to interest and additional borrowings. This represents almost one-third of Tonga's annual gross domestic product, budget papers show. – Nampa/Reuters

China: ‘No developing country will fall into debt trap’

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China: ‘No developing country will fall into debt trap’

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