Japanese Finance Minister Aso said he finds it problematic that China, while taking loans from the Asian Development Bank as a developing country, makes excessive loans to emerging economies, which causes some of them to face repayment difficulties.

5 comments

1. Where do you read this from the article?

   Aso did not make a statement like that. And the inference is also not mentioned anywhere.

   The only thing that is mentioned is that Japan wants to stop the ADB granting loans to China and that senior officials at the Ministry of Finance in Japan find it a double standard that China is a borrower at the ADB while simultaneously being a major loan giver to emerging economies and exercising influence over them.

   Hirson, a consultant at the private Eurasia group and ex-chief representative of the US Treasury in Beijing framed it as part of the competition between the ADB and AIIB, the latter of which China backs, but might lack some long standing institutional insight that the ADB has.

   China itself is the third largest shareholder of the ADB but with only 5.4%, it cannot influence as much as the US and Japan, which together account for 25% of the voting shares.

2. Loaning and asking for economic/political concessions is hardly unique to China. Furthermore, it should be considered that the loans are usually related to long-term environmental issues which, while benefiting China in the long term, probably aren’t an internal priority, but environmental issues are global.

   If we admit that China is benefiting from the loans that it gives to other countries, why can we not admit the benefits that these organizations gain from loaning to China? Every project is an opportunity to shape the development of the country.

3. Isn’t that the Modus Operandi of Chinese backed loans? He isn’t saying anything new.

4. CCP debt trap modus operandi

5. This article is from April 17, 2019.

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