The Belt and Road Initiative (BRI) is not creating ‘debt traps’, said the China’s consul general in Kota Kinabalu, Huang Shifang.

She said the allegation spun by certain quarters was untenable and she took the accusers to task.

Speaking at a media engagement here on Thursday, Huang stressed that China has always been committed to supporting developing countries in their socioeconomic development.

She explained that due to various external factors, debt risks facing developing countries have recently risen significantly and some people have exploited this situation by falsely accusing China of “debt traps” and “opaque loans”.

China does not accept this, she said, adding that China has always been committed to supporting developing countries in their socioeconomic development.

“Insufficient funding is a bottleneck issue for many countries in their pursuit of prosperity and rejuvenation.

In light of their respective need for development, China has focused our outbound investment and financing cooperation on infrastructure and production to help developing countries enhance their capacity for self-generated and sustainable development.

“This has contributed to these countries’ economy and peoples’ livelihood and delivered tangible benefits to the local communities. China has always carried out investment and financing cooperation with developing countries based on the principle of openness and transparency.

“China acts in accordance with the laws of the market and international rules and respects the will of others. We never force others to borrow from us or forcibly ask any country for debt repayment. We never attach any political strings to loan agreements, or seek any selfish political interests. To date, none of the partner countries have accepted the claim that the Belt and Road Initiative has created ‘debt traps’,” Huang stressed and added, “therefore, the so-called “Chinese debt trap” allegation against China is simply untenable.”

The Belt and Road Initiative is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations. It is considered a centerpiece of the Chinese leader Xi Jinping’s foreign policy.

Huang also said the Consulate General of the People’s Republic of China in Kota Kinabalu remains committed to serving as a bridge and facilitating deeper exchanges and cooperation between the two countries across a wide range of sectors.

It will also facilitate promotion of high-quality common development and foster a new era of win-win cooperation within the context of building a China-Malaysia community with a shared future.

She pointed out that Sabah’s strategic location and resource advantages have been amplified and harnessed in the post-pandemic era, pulling in investments worth billions from China to date.

“This showed immense potential and prospects for mutually beneficial cooperation between China and Sabah within the Belt and Road Initiative framework. As a crucial point along the 21st-Century Maritime Silk Road, Sabah presents itself as an attractive investment destination for Chinese businesses.

“Sabah’s stunning landscapes, abundant resources and harmonious society provide a solid foundation and promising prospects for practical collaboration between the two places,” she said.

According to Huang, the friendly relations between China and Malaysia have led to significant progress in exchanges and cooperation between China and Sabah State across various sectors.

To a question how China has helped Sabah economically and its plans for bilateral cooperation, she pointed out that more and more Chinese enterprises are choosing to invest and expand their operations in the region.

“Their collaborative efforts extend beyond the realms of tourism and infrastructure into high-end manufacturing, green energy, logistics, transportation, and more. For example, the photovoltaic glass production line and silica sand mining and processing project invested by China Kibing Group in KKIP and Kudat, with a total investment of nearly RM3 billion, will realize an annual output of 1.2 million tons of silica sand and 900,000 tons of photovoltaic glass after the completion of the first phase.

“The investment would create more than 2,000 new jobs, of which the vast majority will be for the local staff and this year, Kibing Group has arranged for more than 600 of its local employees to go to China to receive production skills training in batches.

“This not only plays an important role in enhancing the quality of Sabah’s labour force, but also makes a positive contribution to Sabah’s economic and social development,” she said.

Huang also disclosed that the China Guangken Rubber Group and Bornion Timber Company set up a joint company in 2009 and jointly invested in the development of a 12,000-hectare rubber plantation project.

During the decade-long cooperation, Guangken Rubber Group, with its rich experience accumulated from decades of engaging in natural rubber as well as its advantages in organization, management, technology, talents, have jointly explored and established a good mode of cooperation with Bornion Timber Company, realizing complementary strengths in agricultural technology, capital, management, etc, which has become a role model of win-win cooperation, and the project has been rated by the Sabah Forestry Department as an A+ grade project, she said.

Source:
courtesy of THE BORNEO POST

by NANCY LAI

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