China in bid to allay fears of debt risk in its Belt and Road initiative
Beijing — China aims to make the Belt and Road initiative sustainable and prevent debt risks, its finance minister said on Thursday, seeking to allay criticism that the infrastructure plan to boost trade and investment creates a heavy burden for some nations. The policy championed by Chinese President Xi Jinping has become mired in controversy, with some partner nations bemoaning the high cost of projects, though China has repeatedly said it is not seeking to trap anyone with debt. Western governments have tended to view it as a means to spread Chinese influence abroad, saddling poor countries with unsustainable debt. Finance minister Liu Kun, speaking at a forum to kick off a three-day Belt and Road summit in Beijing, said China will establish an analysis framework on debt sustainability for Belt and Road projects to “prevent and resolve debt risks”. Chinese financial institutions, countries involved in Belt and Road and international agencies are encouraged to use this framework t...
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