Bloomberg News:
The first question is about the debt issues in Africa. What is the best way to resolve the problems African nations are facing? Secondly, what steps China is taking, if any, to join Paris Club?
Zhou Liujun:
I'll continue and answer the questions about the debts of African nations and joining the Paris Club.
Debts in Africa have attracted much attention. It's a long-standing historical issue. The reasons are complex and not only include changing factors such as the international economic environment but also external reasons such as the rise of protectionism and appreciation of major reserve currencies. Over the past two years, the issue of debts in Africa has become more prominent due to the impacts of COVID-19. China has always paid great attention to debt-related pressures faced by African countries. We always respect the will of African countries in terms of financing cooperation and wish to meet their needs. When we offer interest-free loans and preferential loans, we have fully considered the debt situations and repaying capabilities of recipient countries, adhered to the laws and regulations, done our work in an open and transparent manner, and never sought political gains.
In the process of cooperation with Africa, we have been committed to pursuing the greater goods and shared interests and upholding the principles of sincerity, real results, affinity, and good faith for developing relations with other developing countries. We have dealt with issues on loans and debts relief in Africa through friendly consultation. China and Africa have a shared future and are facing the difficulties together brought by the pandemic. President Xi and leaders of relevant African countries convened the Extraordinary China-Africa Summit on Solidarity Against COVID-19 and announced a series of important measures such as support of the development of relevant African countries and debt suspension and reduction. China has actively promoted and fully implemented G20's Debt Service Suspension Initiative, signing debt suspension initiatives or reaching consensuses with 19 African countries. China has exempted the least developed countries, heavily indebted poor countries, landlocked developing countries, and small island developing countries in Africa from interest-free loans due at the end of 2020.
We believe that the solution to Africa's debt problems lies in development, and development holds the key to solving all of its problems. It is necessary for African countries to enhance their capacity for independent development and achieve sustainable development. China-Africa cooperation has always been a benchmark for South-South cooperation, and it is also recognized as a model of international cooperation with Africa. According to incomplete statistics, China has built more than 6,000 kilometers of railways, more than 6,000 kilometers of roads, nearly 20 ports, and more than 80 large-scale power facilities in Africa. As an old Chinese saying goes, "To get rich, build roads first." The transportation infrastructure has injected vitality into the development of the African economy. We have also assisted in the construction of more than 130 medical facilities, 45 sports venues, and more than 170 schools. During the pandemic, many Chinese engineering technicians are still sticking to their posts in Africa to ensure the China-Africa key cooperation projects run safely and to provide strong support for the resumption of work and production in African countries.
As I said, the issue of Africa's debt has attracted much attention and people have various opinions. Meanwhile, we have noticed that some media are peddling allegations that China's loans have created an "invisible debt trap." I can tell you that these are erroneous statements. Many Western, Asian, and African governments, scholars, and research institutions have undertaken detailed investigations on these issues. Not a single developing country has fallen into debt traps due to China's loans. Facts and statistics have fully revealed that allegations "China causes debt trap for Africa" are simply out of political, motives aiming to drive a wedge between China and Africa. I think, regarding China's support for Africa, only African governments and people have the right to speak.
Now for the second question, as to whether China will join the Paris Club. Currently, China is not a member of Paris Club, but we have participated in some of the Paris Club activities as a non-member, and communication with the member countries of the Paris Club has been smooth.
In the next step, China will adhere to the multilateral debt handling principles of "joint action, fair burden sharing, individual cases handling, and multilateral consensus," strengthen communication and cooperation with all parties, work together to help African countries deal with debt problems and work with Africa to step up the implementation of fruits of the 2018 Beijing Summit of the Forum on China-Africa Cooperation, accelerate the promotion of cooperation projects that meet the urgent needs for the development of African countries, and further strengthen the indigenous driving force for the African economy. At the same time, we proposed that developed countries, multilateral financial institutions, and private creditors match their words with actions, and do more things that are beneficial to the development of African countries and other developing countries. We will work together and complement each other's advantages, and sincerely support developing countries, including African countries, to achieve sustainable development and bring real benefits to local people. Thanks.
