Look inward, stop sabotage: China hits at US Treasury's chief over Zambia

Look inward, stop sabotage: China hits at US Treasury's chief over Zambia

Slamming Yellen’s remarks, Beijing says Washington should worry about its own debt limit crisis

By Riyaz ul Khaliq

ISTANBUL (AA) – Beijing has taken a swipe at Washington over its US Treasury chief’s comments on Zambia, with China urging the world’s top economy to instead worry about its own debt limit crisis.

“The biggest contribution that the US can make to the debt issues outside the country is to act on responsible monetary policies, cope with its own debt problem, and stop sabotaging other sovereign countries’ active efforts to solve their debt issues,” said a statement by China’s Embassy in Zambia late Tuesday.

The statement came after US Treasury Secretary Janet Yellen said Monday that it is “crucial to immediately address Zambia’s heavy debt burden with China.”

Yellen also revealed she had a “constructive” discussion with her Chinese counterpart on Zambia’s debt in Switzerland during their first face-to-face meeting last week.

“It has taken far too long already to resolve this matter,” said Yellen in Lusaka, the capital of the southern African nation where she met Zambia’s President Hakainde Hichilema, who called on the country’s creditors to ensure a quick restructuring of its external debt.

“We are aware that our creditors had a meeting last Thursday and we are hoping that something favorable can come out of that engagement to get us going,” Hichilema had said.

The Chinese side, however, used Washington’s own debt crisis limit to react to US comments on Zambia’s loans.

Yellen last Friday warned of the “widespread global effects that could be felt if the federal government exhausts extraordinary measures and fails to raise the debt ceiling.”

The warning comes after the world’s top economy last Thursday hit its $31.4 trillion debt limit set by the US Congress, forcing the Treasury Department “to start taking extraordinary measures to keep the government paying its bills.”

“Yellen’s words and actions have eloquently revealed how and why the US’ catastrophic debt problem is emerging, which convinces the world to drop the previous assumption that her statements about debt issues are correct,” said the Chinese Embassy in Lusaka.

“For Zambia's debt related to China, China has been active in co-chairing Zambia's Official Creditor's Committee under the G20 Common Framework and working hard with other parties to seek a sustainable solution in line with the principle of common actions and fair burden-sharing,” the embassy said.

Zambia’s mounting external debt amounted to $13.4 billion at the end of 2022, with more than half owed to China, according to the latest figures from the country’s Finance Ministry.

It defaulted on its sovereign debt in 2020, a year before Hichilema came to power.

“China’s efforts have made some positive progress. We look forward to US' constructive role in the process,” the statement added.

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