China's Xi expands his 'debt trap' net with latest package for Africa
File photo of Chinese President Xi Jinping. Photograph:( Reuters )
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Over the next three years, China claimed that it is willing to provide funding of 360 billion yuan ($50.6 billion) to support its 10-point initiative, including 210 billion yuan in loans and 80 billion yuan in aid.
Over the next three years, China claimed that it is willing to provide funding of 360 billion yuan ($50.6 billion) to support its 10-point initiative, including 210 billion yuan in loans and 80 billion yuan in aid.
Chinese top leader Xi Jinping on Thursday (Sept 5) helmed over the Forum on China-Africa Cooperation Summit (FOCAC) to show Beijing's plans to expand ties with the continent amid debt-trap accusations.
Billed as Beijing’s biggest diplomatic event in years, the representatives of more than 50 African countries are attending the triannual forum.
China's Africa outreach: Top takeaways from Xi Jinping's speech
On Global South: Xi Jinping pledged to help the Global South by deploying more financial resources for Africa's purported modernisation. The 10-point proposal reflects that despite Beijing's debt trap policies, China’s influence goes beyond the traditional scope of trade and infrastructure.
Also watch | Decoded: China's debt-trap diplomacy
On Trade: Beijing announced that it will open its markets to 33 least developed countries (LDCs) in Africa. This, China claimed, will ensure that these countries enjoy zero tariffs on all Chinese products.
Finance and Investment: Over the next three years, China claimed that it is willing to provide funding of 360 billion yuan ($50.6 billion) to support its 10-point initiative, including 210 billion yuan in loans and 80 billion yuan in aid. This means, that if China provides a $10 loan to a country in Africa, of this, nearly $6 will be in loan, on which the level of interest rate needs to be clarified at the time of filing this report.
On Governance: China claimed that it will help train African officials to improve governance. Beijing proposed to build 25 African research centres and invite 1,000 African officials and politicians to China to learn about modern governance.
Technology, green industry and health: China also proposed 30 interconnectivity projects and 1,000 "small and beautiful projects" in Africa under its Belt and Road Initiative.
Beijing will build 20 digitalisation projects to help the continent "embrace the new technology revolution". China claimed that it would also cooperate with African countries in laboratories and satellite remote sensing.
(With inputs from agencies)
