China, US in talks to ease countries’ debt
China and the US have maintained communication through bilateral and multilateral channels on debt issues, and China is willing to work with all sides to continue making efforts to ease the debt of developing countries, Mao Ning, spokesperson of the Ministry of Foreign Affairs of China, said on Friday.
The remarks were made in response to reports on the two countries’ discussion on new measures to prevent a wave of emerging market sovereign debt defaults.
Chinese experts said that the bilateral cooperation over this debt issue could potentially lead to a new breakthrough in cooperation between China and the US.
Speaking at a regular press conference on Friday, Mao said that as a matter of principle, China has always attached great importance to the debt issue of developing countries. Adhering to the principles of equality, consultation, cooperation, and mutual benefit, China has consistently worked to help alleviate the debt burden of developing countries and promote sustainable development, the spokesperson said.
According to Bloomberg’s report on Friday, the US and China are discussing new measures to prevent a wave of emerging market sovereign defaults, citing people familiar with the matter.
Cooperation between China and the US on the debt issue not only helps to reduce the risk of defaults in developing countries but also sends a stronger signal to the global market on the urgent need of recovery from the pandemic, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday.
The significance of reaching consensus between the two major economies in this matter lies not only in the issue itself but also highlights cooperation in broader economic sectors such as interest rates, exchange rates and credit projects, in addition to traditional areas such as climate cooperation and counter-terrorism, Hu Qimu, a deputy secretary-general of the digital-real economies integration Forum 50, told the Global Times on Friday.