China to forgive 23 ‘belt and road’ loans to 17 African countries — Pinsent Masons

Chi­na will con­tin­ue to help with the con­struc­tion of major infra­struc­ture projects in Africa via financ­ing, invest­ment and assis­tance, the min­is­ter said in a speech at a recent meet­ing of the Chi­na-Africa coop­er­a­tion forum.
The coun­try will also be increas­ing imports from Africa, help­ing to devel­op Africa’s agri­cul­tur­al and man­u­fac­tur­ing sec­tors, and expand­ing co-oper­a­tion in emerg­ing indus­tries such as the dig­i­tal econ­o­my, health, and green and low-car­bon sectors.
The lat­est announce­ment fol­lows China’s can­cel­la­tion of at least 94 inter­est-free loans amount­ing to over US$3.4 bil­lion in Africa between 2000 and 2019.
Finance expert Kanyi Lui of Pin­sent Masons said: “Chi­na has been for­giv­ing inter­est-free loans made to devel­op­ing coun­tries for almost half a cen­tu­ry. When many African coun­tries expe­ri­enced debt dis­tress in the 1980s to 1990s, Chi­na for­gave over 85% of inter­est free loans then out­stand­ing. This lat­est announce­ment shows China’s con­tin­ued lead­er­ship in work­ing with devel­op­ing coun­tries in debt distress.” 
“As the BRI [Belt and Road Ini­tia­tive] starts to shift its focus from mega infra­struc­ture projects to ‘small and beau­ti­ful’ projects which focus on sus­tain­abil­i­ty, rais­ing liv­ing stan­dards and social impact, devel­op­ing coun­tries would do well to care­ful­ly con­sid­er their own their inter­ests and devel­op­men­tal needs and how to engage with Chi­na in a man­ner that would max­imise the wel­fare of their peo­ple,” he said.
As of 2020, the African nations with the high­est exter­nal debt to Chi­na as a per­cent­age of gross nation­al income are Dji­bouti (43%), Ango­la (41%) and the Demo­c­ra­t­ic Repub­lic of Con­go (29%), accord­ing to World Bank data cit­ed in press reports.

China cannot stop other world leaders visiting Taiwan, says Nancy Pelosi

Chi­na can­not stop oth­er world lead­ers vis­it­ing Tai­wan, says Nan­cy Pelosi US House speak­er leaves island as Chi­na orders live-fire drills off coast 02:13 The US House speak­er, Nan­cy Pelosi, has said Bei­jing can­not pre­vent world lead­ers from trav­el­ling to Tai­wan, as she depart­ed from the island on Wednes­day to con­tin­ue her tour of Asia. In a…

But CAN the United States defend Taiwan?

Pres­i­dent Joe Biden has yet again stat­ed that if Chi­na attacked Tai­wan to reuni­fy what Bei­jing sees as a rene­gade province with the main­land, the Unit­ed States would come to Taiwan’s mil­i­tary defense. White House staff has again fol­lowed up these off-the-cuff pres­i­den­tial com­ments with a “clar­i­fi­ca­tion” that in fact, strate­gic ambi­gu­i­ty remains Amer­i­can pol­i­cy. Somewhat…

China Is Doing Biden’s Work for Him

If Pres­i­dent Joe Biden’s trip to Asia—marked as it was by his com­ments on the defense of Tai­wan, announce­ments on a pro­posed new region­al trade pact, and meet­ings with lead­ers who exhib­it sim­i­lar lev­els of con­cern about a ris­ing China—has shown the per­sis­tence of Amer­i­can glob­al pow­er, it has also revealed some­thing of equal importance:…

Dawn of a second Cold War and the ‘scramble for Africa’

Abstract Ample empir­i­cal evi­dence shows that the African Con­ti­nen­tal Free Trade Area (AfCF­TA) will boost the com­pet­i­tive­ness of African economies and accel­er­ate the diver­si­fi­ca­tion of sources of growth and trade to deep­en eco­nom­ic inte­gra­tion in Africa and enhance the region’s assim­i­la­tion into the world econ­o­my. How­ev­er, real­iz­ing these poten­tials hinges on revers­ing the cur­rent trend…

China’s Costly Exceptionalism

Amer­i­ca has long thought itself excep­tion­al, a blessed place des­tined to bring free­dom to the world. Chi­na has an even longer his­to­ry of self-pro­­claimed excep­tion­al­ism and, spurred by its many mod­ern achieve­ments, is more assertive­ly pro­mot­ing its brand of gov­er­nance as a mod­el for the world. The widen­ing con­fronta­tion between the Unit­ed States and China…