China's Foreign Minister Qin Gang, during a visit to the African Union Headquarters in Addis Ababa, Ethiopia, rejected allegations that a "Chinese debt trap" was developing in Africa.
Qin, who is on a week-long visit to the African continent on his first overseas trip as foreign minister, stressed that the so-called "debt trap" is a false narrative imposed on the relationship between China and African nations, arguing that the African people are the only ones to judge the cooperation which exists between China and Africa.
“As good brothers sharing joys and sorrows, China and Africa have forged ahead side by side on the path of common development,” said Qin during a press conference at the African Union’s headquarters in Addis Ababa on Wednesday.
The minister pointed out that Chinese-African financial cooperation is mainly related to infrastructure construction and manufacturing. It aims to build the capacity needed for Africa's self-sustaining development.
According to the Chinese Foreign Minister, projects in which China is participating contribute to the welfare of African countries. He noted that the problem of their outstanding loans should be solved not so much through debt settlement mechanisms, but by stimulating the economic and social development of these states.
Qin also said that Beijing has already reached agreements with 19 African countries on debt relief.
“China will continue to respect the will of the African people, and bring tangible benefits to the African people through China-Africa cooperation based on the actual situation in Africa,” Qin Gang stressed.
He said that approximately 75 percent of Africa’s total external debt is related to multilateral financial institutions and commercial creditors, calling on “all parties concerned” to help reduce the pressure that African countries are experiencing because of the existing debt.
“China calls upon all parties concerned to contribute to alleviating Africa's debt burden in line with the principle of common actions and fair burden-sharing,” Qin said.