Beijing slams Tillerson's remarks on Chinese debt-trap in Africa

‍Beijing on Tuesday dismissed Washington's allegations that Chinese loans are leaving African countries debt-ridden, asserting that Chinese financial support is helping nations in the continent to "achieve industrialization and modernization."

"China has always paid high attention to the sustainability of the African debt issue. We persistently follow the idea of intensive development, and uphold that large infrastructure building and industrial development in Africa should be planned and promoted by both sides," Chinese Foreign Ministry Spokesperson Geng Shuang said at a press conference.

"We pursue both social and economic benefits of the programs, as well as Africa's capacity for independent sustainable development, so as to avoid increasing the debt burden of African countries. We also hope certain countries can do more for Africa's development and view China-Africa cooperation in an objective and just manner," he added without naming any country or official.

The Chinese reaction came immediately after U.S. Secretary of State Rex Tillerson warned on Tuesday that China's approach to development in Africa "encourages dependency" that weakens the sovereignty of the nations. Tillerson made the remarks as he set off for his first official trip to the continent, with an itinerary that will take him to Ethiopia, Kenya, Djibouti, Chad and Nigeria over the week.

"Chinese investment has the potential to address Africa's infrastructure gap, but its approach has led to mounting debt and few if any jobs in most countries," Tillerson said as he accused Beijing of entrapping African governments with "opaque contracts, predatory loan practices, and corrupt deals that mire nations in debt."

"When coupled with political and fiscal pressure, this endangers Africa's natural resources and its long-term economic and political stability," he added.

The Chinese spokesperson countered the "biased" allegations from the U.S., explaining that the "debt owed by some African countries was accumulated over a long period of time" and not in recent years. Geng also clarified that China is not the main creditor of African countries, as claimed by U.S. officials.

"China's financial aid to Africa mainly goes into infrastructure building and production operation. Chinese companies have built many infrastructure projects in Africa such as highways, railways, ports, airports and communication facilities, which have greatly improved the business environment in Africa and help Africa attract foreign capital and enhance its self-sufficiency," he said.

"In addition to loans, the Chinese government is more inclined to encourage and guide Chinese enterprises to increase their direct investment in Africa and has offered support in this regard, and actively explores new investment cooperation models such as public-private partnerships," Geng added.

China welcomed by Africans: U.S. general

Even General Thomas Waldhauser, the head of U.S. Africa Command, agreed on China's positive engagement in Africa during a congressional hearing on Tuesday, which was dominated by concerns about Beijing's role in the continent.

"The Chinese are building facilities, they are building a shopping mall, they built a soccer stadium, they have built the infrastructure for communications," Waldhauser said.

The U.S. and French military bases in Djibouti preceded the Chinese one, but Beijing's presence in the country is unmistakable and welcomed by locals, he added.

Tillerson, in his first major speech on U.S.-Africa ties, promised a "bright future" for the continent, stressing that the Trump administration is "committed to saving lives in Africa."

While he announced a U.S. plan for additional humanitarian aid of 500 million U.S. dollars for fighting famine and food insecurity and other conflict-related needs in Somalia, Ethiopia, South Sudan and the Lake Chad Basin, Tillerson did not mention where the administration is going to source the funds from.

Analysts have pointed out that the U.S. has been guided by the Pentagon in its engagement with Africa in recent times. Tillerson's State Department has also submitted a 2019 budget request that would cut U.S. health programs in Africa by a fifth and diplomatic programs by more than a third.

Observers say this would mean Washington will not be in a position to match China's proposed investment in the continent over the next few years.

Chinese President Xi Jinping pledged 60 billion U.S. dollars in assistance to Africa as he addressed the Forum on China-Africa Cooperation in Johannesburg, South Africa in December 2015.

Waldhauser admitted that Washington "will never outspend the Chinese on the African continent."