Photo: Liu Yang/GT

“The essence of the global debt problem is of a development issue. Africa’s development requires investment and finance cooperation, which inevitably creates debt. Debt should not to be feared, while it is part of development.  And, the only solution is to address the debt problem through development approaches,” Du Xiaohui, Director-General of the Department of African Affairs of China’s Foreign Ministry, said on Wednesday.

Du made the remarks during a briefing on China-Africa relations and the outcomes of the Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of the Forum on China-Africa Cooperation (FOCAC), which was held in Changsha city, Central China’s Hunan Province, on June 11.

“China is sincerely committed to helping Africa enhance its independent development capacity, as we believe this is the fundamental solution to the debt issue,” Du noted.

As stated in the China-Africa Changsha Declaration On Upholding Solidarity and Cooperation of the Global South, which was issued by the FOCAC ministerial meeting of coordinators, China is ready to, through negotiating and signing the agreement of China-Africa Economic Partnership for Shared Development, expand the zero-tariff treatment for 100 percent tariff lines to all 53 African countries having diplomatic relations with China, or all African countries except Eswatini, to welcome quality products from Africa to enter the Chinese market, which serves as an example, the official said.

“Africa’s current debt problems — high cost and limited access to financing— are largely caused by the self-serving monetary policies of a certain major country. The global status of this country’s currency extends beyond the impact of its domestic monetary policy, imposing a special international responsibility. Unilateral and unrestricted monetary tightening or easing sends shockwaves through the developing countries priced in this currency,” Du said.

Moreover, China has played a key role in alleviating Africa’s debt burden. As the largest contributor to the G20 Debt Service Suspension Initiative, China has gone beyond its proportional share of claims. Within the G20 framework, China has led debt relief efforts for some African countries and maintains friendly consultations through bilateral channels, Du noted.

Despite facing significant development pressures from a certain country’s so-called reciprocal tariffs, China continues to support Africa ease debt repayment pressure and implement zero-tariff policy. “This is because we understand that only by standing together with our African brothers and the Global South, can we overcome these challenges,” Du said, noting that “we firmly believe this is the righteous and principled path, not a crooked or improper one.”