China Agrees to Debt Relief for 17 African Countries Related to the Belt and Road Initiative

Wang Yi, State Councilor and Foreign Minister of China
[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] China has promised to forgive some of the debts of 17 African countries related to the Belt and Road Initiative (一帶一路: the overland and maritime Silk Road connecting China, Central Asia, and Europe), the Chinese Ministry of Foreign Affairs announced on the 20th (local time).

According to the Chinese Ministry of Foreign Affairs website, Wang Yi, Chinese State Councilor and Foreign Minister, announced the debt forgiveness policy during his speech at the meeting of the Coordinators for the Implementation of the Agreement of the 8th Ministerial Conference of the Forum on China-Africa Cooperation (FOCAC), held virtually on the 18th (the conference was held last November).

Minister Wang stated, "We will continue to promote high-level Belt and Road cooperation," and added, "China will forgive 23 interest-free loan debts owed by 17 African countries to China that are due for repayment by the end of 2021."

Minister Wang did not disclose the specific amount of debt forgiveness or the names of the countries involved on that day.

This may be a response to Western criticism that China is trapping developing countries participating in the Belt and Road Initiative in a 'debt trap.'

It also appears to be a response to U.S. Secretary of State Antony Blinken’s visit from the 7th to the 11th to three African countries?South Africa, the Democratic Republic of the Congo, and Rwanda?where he expressed intentions to strengthen cooperation and counterbalance China’s influence in Africa.

Minister Wang also promised, "China always fulfills what it says," and pledged to continue using Africa’s needs as the starting point for cooperation and to implement previously agreed-upon cooperation projects. He further stated, "China will actively participate in major infrastructure construction projects in Africa through various means such as loans, investments, and aid, while continuously expanding imports from Africa." Additionally, he mentioned supporting the development of African agriculture and manufacturing, and expanding cooperation in emerging industries such as the digital economy, health and sanitation, and green low-carbon sectors.