Wang Yi of China: "US and Western Countries Must Unfreeze Afghan Funds"

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Hyun-woo] Wang Yi, China's Foreign Minister, argued at the G20 Foreign Ministers' Meeting held regarding the Afghanistan situation that the United States and Western countries should quickly lift the freezing of funds related to Afghanistan. China is the only country in the international community to officially recognize the Afghan armed group Taliban as the legitimate government and has promised large-scale investments and vaccine aid to Afghanistan. This statement on lifting the fund freeze is also interpreted as an effort to increase closeness with the Taliban.

According to China's state-run Global Times on the 22nd (local time), Minister Wang Yi said at the G20 Foreign Ministers' Meeting held via video conference, "Afghanistan's foreign exchange reserves are the country's sovereign national assets and should be used for its people," emphasizing, "Such funds should not be used as bargaining chips to exert political pressure on Afghanistan." He continued, "The United States and the West should lift sanctions such as the freezing of funds on Afghanistan to ease liquidity pressures, and international financial institutions should strive to finance poverty alleviation, livelihoods, and infrastructure."

Minister Wang Yi stated, "China supports the United Nations playing an important role in maintaining peace and providing aid in Afghanistan and urges the UN Assistance Mission in Afghanistan and other UN agencies in Afghanistan to fulfill their missions," adding, "Since the United States and NATO bear responsibility for the Afghan refugee issue, they should accelerate Afghanistan's reconstruction."

The G20 ministerial meeting held that day was hosted by Italy and convened to discuss countermeasures regarding the Afghanistan situation. China had earlier been the only country in the international community to officially recognize the Taliban as the legitimate government after the Taliban took control of Kabul, the Afghan capital, last month, expressing its willingness to support. The Chinese government also showcased its closeness with the Taliban by announcing plans to provide Afghanistan with 3 million doses of COVID-19 vaccines and more than 30 million dollars worth of medical supplies.

After the Taliban's reoccupation of Afghanistan, the United States and Western countries imposed sanctions on Afghanistan's foreign currency assets held in US bonds and various investment products, freezing the funds. According to the International Monetary Fund (IMF) data compiled in April, Afghanistan's central bank holds about 9.4 billion dollars in foreign currency assets, of which more than 7 billion dollars are entrusted to US banks.