BEIJING - Beijing has said recent claims by the United States that its Belt and Road Initiative (BRI) is a debt trap are a "completely false proposition" and has instead accused the US of exacerbating the debt burden of developing countries.
None of China's partner countries under its signature infrastructure development programme has endorsed the debt trap claims, said Foreign Ministry spokesman Zhao Lijian on Monday (June 27) at a regular briefing.
The Group of Seven (G-7) leaders led by US President Joe Biden had on Sunday pledged to raise US$600 billion (S$830 billion) to fund infrastructure projects in poor countries as a counter to President Xi Jinping's ambitious BRI.
This alternative to China's BRI will help countries "see the concrete benefits of partnering with democracies", said Mr Biden.
Media reports had cited US officials as saying that the new initiative, which comprises public and private investments, would help developing nations grow at a sustainable pace instead of being saddled with Chinese loans.
China has often been accused of engaging in "debt trap diplomacy" under its BRI to gain influence over poor nations.
"The United States is the real creator of the debt trap," said Mr Zhao, who blamed the US' "expansionary monetary policy, financial innovation without regulation, and malicious short-selling practices" for aggravating these countries' debts.
He cited World Bank projections which showed that if all transport projects under the BRI were implemented, they could account for 1.3 per cent of global gross domestic product by 2030, of which a large chunk would go to partner countries.
China welcomes all initiatives that promote global infrastructure development, he said.
"We believe that all kinds of related initiatives do not replace each other, but we oppose words and actions that promote geopolitical calculations and smear the Belt and Road Initiative," he said.
During the G-7 leaders' annual gathering in southern Germany's Schloss Elmau, Mr Biden relaunched the rival infrastructure scheme now rebranded as Partnership for Global Infrastructure and Investment.
It was first announced at last year's G-7 summit in Cornwall in Britain.
He pledged to rally US$200 billion over five years to support low- and middle-income countries in projects to build up climate, energy and health security, as well as digital infrastructure.
Europe will raise €300 billion (S$439 billion) over the same period, said European Commission President Ursula von der Leyen.
