Benjamin Norton, in Multipolarista, 21 August 2022, where the headline reads thus “China forgives 23 loans for 17 African countries, expands ‘win-win’ trade and infrastructure projects”
The Chinese government has announced that it is forgiving 23 interest-free loans for 17 African nations, while pledging to deepen its collaboration with the continent.
This is in addition to China’s cancellation of more than $3.4 billion in debt and restructuring of around $15 billion of debt in Africa between 2000 and 2019.
While Beijing has a repeated history of forgiving loans like this, Western governments have made baseless, politically motivated accusations that China uses “debt-trap diplomacy” in the Global South.
The United States has turned Africa into a battleground in its new cold war on China and Russia. And Washington has weaponized dubious claims of Chinese “debt traps” to try to demonize Beijing for its substantial infrastructure projects on the continent.
For its part, China has pushed back against the US new cold war. Chinese Foreign Minister Wang Yi held a meeting with leaders from various African countries and the African Union on August 18. In the conference, Wang condemned the West’s “zero-sum Cold War mentality.” He instead proposed a model based on “multi-party cooperation” with Africa that brings “win-win results” for all sides.
“What Africa would welcome is mutually beneficial cooperation for the greater well-being of the people, not major-country rivalry for geopolitical gains,” he said.
Wang revealed that Beijing will support the African Union in its efforts to join the G20. The foreign minister also announced that “China will waive the 23 interest-free loans for 17 African countries that had matured by the end of 2021.”
Beijing pledged to strengthen trade with Africa, and has made agreements with 12 countries on the continent to remove tariffs for 98% of the products they export to China, increasing the competitiveness of African goods.
Wang said Beijing will continue to provide food, economic, and military aid to Africa, while offering assistance in the fight against covid-19.
Emphasizing the importance of “development cooperation,” China offered billions of dollars of investment in infrastructure projects as “a strong boost to Africa’s industrialization process.”
Africa plays an important role in Beijing’s Belt and Road Initiative, a global infrastructure project aimed at interconnecting the Global South and moving the center of the world economy back east.
“In the face of the various forms of hegemonic and bullying practices, China and Africa have stood with each other shoulder to shoulder,” Wang stressed, calling to “safeguard international fairness and justice.”
For its part, China has pushed back against the US new cold war. Chinese Foreign Minister Wang Yi held a meeting with leaders from various African countries and the African Union on August 18.
In the conference, Wang condemned the West’s “zero-sum Cold War mentality.” He instead proposed a model based on “multi-party cooperation” with Africa that brings “win-win results” for all sides.
“What Africa would welcome is mutually beneficial cooperation for the greater well-being of the people, not major-country rivalry for geopolitical gains,” he said.
Wang revealed that Beijing will support the African Union in its efforts to join the G20.
The foreign minister also announced that “China will waive the 23 interest-free loans for 17 African countries that had matured by the end of 2021.”
Beijing pledged to strengthen trade with Africa, and has made agreements with 12 countries on the continent to remove tariffs for 98% of the products they export to China, increasing the competitiveness of African goods.
Wang said Beijing will continue to provide food, economic, and military aid to Africa, while offering assistance in the fight against covid-19.
Emphasizing the importance of “development cooperation,” China offered billions of dollars of investment in infrastructure projects as “a strong boost to Africa’s industrialization process.”
Africa plays an important role in Beijing’s Belt and Road Initiative, a global infrastructure project aimed at interconnecting the Global South and moving the center of the world economy back east.
“In the face of the various forms of hegemonic and bullying practices, China and Africa have stood with each other shoulder to shoulder,” Wang stressed, calling to “safeguard international fairness and justice.”
Please name the 17 African countries whose debts China has forgiven. Thanks
China’s Foreign Minister Wang Yi has said that “China had forgiven 23 interest free loans to 17 African countries that had matured at the end of 2021.”. The statement was made at a Conference of African Leaders. Wang Yi had not named the countries, but there is no reason to doubt his statement.
As far as I am aware, no one asked China to forgive Sri Lanka’s debts coming from the US or India. This is absurd. I don’t think Sri Lanka asked China or any other country to forgive SL’s debts. What SL asked was to restructure them. Restructuring is different from forgiving.
I think the Brigadier has misinterpreted what was said in the news report. No one has asked China to pay off what Sri Lanka owes to other countries or lending institutions.
My understanding is that Mr. Gotabhaya Rajapakse then President of SL, asked India, Japan and China to restructure their loans to SL in April/May, as well as asking for a US $5B bridging loan from the IMF. At that time, Sri Lanka’s foreign debt was about US $51 billion. So far we have not heard anything positive from SL’s lenders or the IMF.
However, Elon Musk, President of TESLA raised a private loan of about US$40 billion within a week in May to cover his offer to buy Twitter.
A few months ago I read that most of Sri Lanka’s debts, in descending order of magnitude, are owed to 1. International Sovreign Bonds (ISBs), 2. Loans from ADB, 3. India, 4. Japan, and 5. China. Due to recent transactions India, perhaps, may have become our largest lender.
The difficulties with the maturing ISB’s and recent ADB loans are probably due to their ‘high’ interest rates. Some years ago Sri Lanka was “promoted” by lending agencies to the ‘middle income country’ category. Although this was a welcome promotion, my understanding is THAT it impacted SL’s international borrowing such as ISB interest rates – which were relatively higher. So now that we are a “Have Not Country” we are probably entitled to low interest loans !
Mr X -(1) Please name the 17 countries whose debts China has forgiven.(2) And the 23 loans.(3) How can China forgive Sri Lanka’s debts coming from India or US? This is nonsense.
(4) On forgiving debts. It is not wise to forgive debts without examining the causes that led to failure and ensuring measures are taken to correct them.The most common reason is corruption.If a creditor forgives debt without taking this step, he is encouraging more and more mismanagement. In the end the debtor becomes a pawn in his hands.This is one way of neo-colonialism. The correct way to lend is to help the debtor improve his capacity to govern himself. A look at Vietnam may help.
(5)I have declared my identity. Please declare yours.Its courtesy.
This comment is w.r.t Brigadier Silva’s reference to Vietnam. The last colonial power to occupy parts of Vietnam was the US.
By the time Vietnamese were able to expel US from Vietnam in 1975, Vietnam was a very poor country.
Although US military action had ceased in 1975, US continued to wage war with Vietnam, using stifling sanctions and trade embargoes. These sanctions made it almost impossible for any country to trade with Vietnam.
Even after the adoption of more liberal economic policies in the 1980s, Vietnam’s economy remained stagnant, largely due to US sanctions. However in 1998, President Bill Clinton lifted all sanctions and allowed Vietnam to trade freely with any country. Later, George Bush Jr. granted Vietnam “Most Favoured Nation (MFN)” status in a bilateral agreement signed with Vietnam in 2001. This agreement lifted almost all tariffs on goods exported to US from Vietnam. This near zero tariff regime gave the economy a huge boost, and Vietnam has become a large exporter goods to US.
In this forum and elsewhere Vietnam has been cited as a shining example of the benefits of free trade. In reality, what actually happened was that a large number of US companies, with overseas manufacturing operations shifted them to Vietnam, to take advantage of Vietnam’s MFN status. No doubt Vietnam prospered, but it didn’t help others including some US allies, who had to close down their factories.
The devastation caused by companies shifting their manufacturing operations to low wage countries is seen when one travels through eastern US rust belt states. Prosperity, in countries like China, Mexico, Korea, Vietnam, and others, has come with unemployment elsewhere.
International Trade is perhaps a Zero Sum game.
Also, in answer to Brigadier Silva’s query in 5 above, I am not Mr. X, although I have expressed my views here, partly in response to his thought provoking comments. .