The US is pushing China to cancel debts in developing countries

The US is pushing China to cancel debts in developing countries

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The United States is urging China and other G20 members to do more on debt relief for the world’s poorest countries, a senior US official said Tuesday.

The issue will be highlighted in the final joint statement when the summit in Indonesia’s resort island of Bali concludes this week, the official said, but there will be no unanimity.

“What you will see in the G20 statement is that 19 members of the G20 came together to say that this is a core issue of the first order that we need to take joint action on and you will see that you know, one country is still blocking progress,” the official said on condition of anonymity.

He wouldn’t name the hold-out country, but that seemed likely to be China, a massive creditor to poor countries around the world in policies that Western countries have condemned as “debt traps” to increase Beijing’s grip on the global economy strengthen.

The official mentioned similar opposition to a joint deal to restructure such debts at the World Bank and International Monetary Fund meetings in October.

The issue “will continue to be a topic of conversation between the US and China and within the G20,” he said.

“We see — because of the stresses on the global economy, because of the food and energy security issues we face, as well as the broader macroeconomic headwinds around the world — that a number of emerging economies are in pretty dire straits when it comes to… their debt burden is going,” the US official said.

“It’s critical to find a way forward to bring that relief to these countries so they can finally grow again and lift the burden on their citizens and their economies.”

Debt relief will also be a concern in broader ties with China, which Presidents Joe Biden and Xi Jinping sought to revive at a meeting on the sidelines of the G20 on Monday.

“I suspect that this will be a key issue that we will continue to engage the PRC (China) in in the coming weeks and months,” the official said.

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