U.S. Secretary of State Mike Pompeo on Wednesday, June 24, criticized the Chinese Communist Party’s economic policies to help African nations amid the CCP (Chinese Communist Party) virus pandemic, saying they create unsustainable debt patterns.
“It’s no secret the PRC [People’s Republic of China] is by far the largest bilateral creditor to African governments, creating an unsustainable debt burden,” Pompeo said, according to the State Department’s website.
As the statement notes, during last week’s China-Africa summit, Chinese Communist Party General Secretary Xi Jinping reiterated the CCP’s support of countries most affected by the CCP virus, but showed no real commitment or responsibility on the CCP’s part in spreading the pandemic.
As Pompeo explained, the CCP is the largest bilateral creditor of African governments, providing interest-free government loans, as well as extending the period of debt suspension, leading to an increasingly unsustainable debt burden.
“Most U.S. foreign assistance, by contrast, comes in the form of grants rather than loans, in order to promote transparent, private sector-led economic growth that benefits all parties,” Pompeo said.
He added that public disclosure of official loans would hold governments accountable for their decisions, thus preventing corruption. “This is behavior that deprives citizens of opportunities and undermines national sovereignty,” Pompeo said.
The official said announcements of relief by the CCP are full of “empty promises” and “tired platitudes” and added that it should implement the Group of 20 Debt Service Suspension Initiative (DSSI) to ensure transparency in providing aid.
“The CCP needs to move beyond vague public statements and start to fully and transparently implement the DSSI in accordance with its G-20 commitments,” Pompeo said.
As Fox News pointed out, the DSSI was created by the G-20, an international forum of governments in collaboration with the World Bank and the International Monetary Fund (IMF), with the aim of providing aid.
Xi said he participated in the G-20’s DSSI and said he encouraged Chinese financial institutions to hold friendly consultations with African countries.
U.S.-China relations have become more complicated as the advance of the pandemic exposes serious doubts about the management and transparency of the CCP in relation to its role of timely reporting on the outbreak.