China slams US debt trap accusations as ‘irresponsible’ | World News

China called on Thursday secretary of the treasury Janet Yellen was “irresponsible” and “irrational” after Yellen said Beijing’s lending activities had left developing countries “debt-distressed.”

Yellen said on Wednesday she was concerned by some ChinaActivities on a global scale, especially lending to developing countries. She told U.S. lawmakers at a hearing that Washington is working to counter China’s influence in international institutions and in lending to developing countries.

China has provided hundreds of billions of dollars in infrastructure loans to developing countries, but since 2016 the loans have tapered off as many projects failed to pay expected fiscal dividends.

“I’m very, very concerned about some of the activities that China is doing around the world that is engaging in ways that keep these countries in debt and that don’t help promote economic development,” Yellen said on Wednesday.

In response, Chinese government The United States has made the world’s debt problems worse as Beijing says the Federal Reserve is raising interest rates at an “unprecedented pace,” it said on Thursday.

“We do not accept the unreasonable accusations from the U.S. side,” Chinese Foreign Ministry spokesman Mao Ning said at a news conference on Thursday.

“this U.S. We should help developing countries with practical actions instead of blaming other countries and making irresponsible remarks. “

The Chinese side stated that it has always followed international rules and carried out investment and financing cooperation with developing countries in an open and transparent manner.

A recently published study shows that between 2008 and 2021, China spent US$240 billion to bail out 22 developing countries, as more and more countries struggle to repay the loans used to build the infrastructure of the “Belt and Road”. This amount has soared in recent years.

China is negotiating debt restructurings with countries including Zambia, Ghana and Sri Lanka and has been criticized for stalling the process. In response, it called on the World Bank and the International Monetary Fund to also provide debt relief.