China in bid to allay fears of debt risk in its Belt and Road initiative

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China in bid to allay fears of debt risk in its Belt and Road initiative
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Finance minister tells three-day summit it will act to ensure sustainability, while Europeans and the US allege lack of transparency

Suit summit: Representatives from 37 countries are attending a summit in Beijing on China’s Belt and Road initiative amid criticism from Europe and the US about a lack of transparency and opaque financing. Picture: AFP

Finance minister Liu Kun, speaking at a forum to kick off a three-day Belt and Road summit in Beijing, said China will establish an analysis framework on debt sustainability for Belt and Road projects to “prevent and resolve debt risks”. China will follow market principles and rely on commercial funds for Belt and Road financing, Yi said, adding that China will improve transparency for those projects.

They also pledged to undertake higher quality projects that would hire more local staff and respond to the needs of recipient countries.

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