The recent Forum on China-Africa Cooperation (FOCAC) summit concluded successfully, ushering in a new chapter in China-Africa relations. Over the three-day summit, China established or upgraded strategic partnerships with 30 African nations, significantly enhancing bilateral cooperation. However, around the same time, the U.S. Embassy in China put forward a series of "Prosper Africa" initiatives, implying that only the United States could bring true prosperity to Africa. In reality, the largest share of Africa’s debt burden originates from private creditors in the United States and other Western countries. This raises the question: Who is truly responsible for Africa's so-called "debt trap," and who is reaping the benefits from Africa's development?
A recent program aired by CCTV offered a vivid illustration of the "debt trap," using the analogy of a watermelon and rubber bands to depict how Africa has become ensnared in a vicious cycle of debt.
In this analogy, each rubber band represents $10 million in foreign debt, and the watermelon symbolizes a developing African nation. Faced with a shortage of domestic capital and an urgent need for development, the country can only borrow from abroad. Under credit ratings assigned by Western institutions, the country is rated a mere B, indicating weak repayment capacity and high credit risk. As a result, it is compelled to borrow at elevated interest rates, paying much higher interest than countries with better credit ratings.
The African nation is burdened with the dual obligation of repaying both the principal and accumulating interest each year. As it attempts to meet these obligations, the metaphorical watermelon is constricted by more and more rubber bands, representing the mounting debt. When the country's GDP grows slowly during this period, its debt remains within a manageable range relative to GDP.
However, the situation deteriorates when Western credit rating agencies downgrade the country's rating further, triggering even higher interest rates on its existing loans. For instance, in one year, the nation struggles to repay $2.8 billion in foreign debt, of which $1.6 billion is principal and $1.2 billion is interest. Despite its efforts, the overall debt continues to grow, reaching $38 billion, or 68% of its GDP. The rising interest rates compel the nation to borrow more simply to service existing debts, perpetuating a cycle of borrowing and repayment.
Over the past decade, this African country's credit rating has steadily declined, while its foreign debt has tripled. Meanwhile, its interest burden has increased sixfold, although GDP has only doubled. The country in question is Kenya, frequently cited in Western media as an example of the so-called "debt trap," with a focus on China’s role in its debt.
Tang Xiaoyang, Director of International Relations at Tsinghua University, elaborates further: following a credit downgrade, rating agencies label the country as a higher risk, which raises borrowing costs through increased interest rates and shortened repayment terms. This imposes immense financial pressure, leading to further credit downgrades—a vicious cycle of debt ensues.
In the debt structure of African nations, private debt accounts for 43% of total liabilities, with the majority of this debt held by private investment firms from the United States and other Western countries. These exorbitant interest rates are what drive African nations into a debt trap, yet the West shifts the blame onto China for Africa's debt challenges. While China and Africa embark on new rounds of cooperation, the U.S. promotes its so-called "Prosper Africa" initiative. But the question remains: Who is truly prospering from this “initiative”?
This brings us to a critical point: Is the West genuinely committed to Africa's prosperity, or is it profiting from Africa's debt burden?
Some Western media claimed that during the China-Africa forum, China promised financial support while avoiding addressing the debt crisis and calls for debt reduction. In response, Foreign Ministry spokesperson Mao Ning refuted these claims at a press conference.
Mao Ning quoted Foreign Minister Wang Yi, stating that since its establishment 24 years ago, the China-Africa Cooperation Forum has played a crucial role in promoting Africa's development and improving the lives of its people. It has facilitated the construction and upgrading of nearly 100,000 kilometers of roads, over 10,000 kilometers of railways, nearly 1,000 bridges, and close to 100 ports across Africa. In just the past three years, Chinese companies have created more than 1.1 million jobs in Africa. These developments contribute significantly to overcoming Africa's developmental challenges and addressing its debt issues.
Mao Ning reiterated that China is never a major creditor to Africa. According to World Bank data, multilateral and private creditors account for 80% of Africa’s external debt, with bilateral debt representing a small fraction. Despite this, China has consistently helped African countries alleviate debt repayment pressures through both bilateral and multilateral mechanisms and is the largest contributor to the G20 debt suspension initiative. In the Action Plan adopted at the summit, China introduced concrete debt relief measures. China also called on the international community, particularly developed nations and international financial institutions, to take responsibility and assist African countries in reducing their debt burdens and achieving sustainable development.
Deep Throat
** 博客文章文責自負,不代表本公司立場 **
The government of Prime Minister Keir Starmer is facing its first major crisis as distrust in the state spreads rapidly. In response to the violent riots occurring in many parts of the UK, the British Mail on Sunday bluntly stated that the country is experiencing a "summer of discontent."
On the weekend of August 3-4, the biggest riots in 13 years erupted in several British cities, resulting in injuries to police and property damage. Protests of varying scales took place in Edinburgh, Liverpool, Bristol, Manchester, Stoke, Belfast, and others. In some areas, bricks were thrown, shops were looted, and even the police were attacked.
These riots are the worst in the UK since the summer of 2011, when the killing of a mixed-race man by police in North London sparked widespread unrest.
It’s noted that the incident occurred less than a month after the formation of the new British Cabinet. The Labour party, led by the new prime minister, had hoped that their landslide victory in the general election would usher in a political honeymoon lasting through the summer. However, the euphoria surrounding the new government's arrival dissipated in less than a month due to a series of immediate challenges.
Analysts also pointed out that in addition to the ongoing riots and potential tax increases, the new UK government faces a multitude of problems. Without clear progress on the economy, the National Health Service, and immigration issues, societal discontent in the UK will be hard to overcome.
The wave of protests in the UK emerged following a stabbing rampage on July 29 when a 17-year-old man armed with a knife broke into a children's dance class in Southport, northwest England, killing three children aged 6 to 9 and injuring at least eight others. The incident shocked the society of England.
According to Reuters, hundreds of anti-immigration protesters became embroiled in riots after false information quickly spread on social media claiming that the knife-wielding attacker was a radical Muslim immigrant. Although British police stated that the 17-year-old suspect, Axel Rudakubana, was born in the UK, protests by anti-immigrant demonstrators continued, escalating into violence, arson, and looting.
In Southport, hundreds of people took to the streets to protest, clashing with police who came to maintain order. Protesters threw Molotov cocktails and bricks at the police, inflicting injuries on 39 officers.
In London, violent riots occurred near 10 Downing Street, the British prime minister's official residence. On the evening of July 31, thousands of protesters held a demonstration near Downing Street, chanting slogans like "We want to take our country back" and "Ban migrant boats." Some protesters knocked down police barricades, and threw Molotov cocktails and fireworks at the Prime Minister’s residence and the Winston Churchill statue, leading to fierce clashes with the police. More than 100 protesters were arrested.
During the Sunderland protests, a police building was looted and adjacent buildings were set on fire.
In Belfast, protesters smashed the windows of a café outside a mosque and threw bricks at reporters.
In Liverpool, about 1,000 anti-immigration protesters clashed with counter-protesters, with some shouting hate speech.
Facing this series of emergencies, the new British government has shown a tough stance. Prime Minister Keir Starmer condemned the violence, stating that protesters were exploiting social grief to create unrest. He emphasized that the government would fully support the police in their fight against extremists who seek to spread hate.
"I guarantee you that you will regret taking part in this disorder. Whether directly or those whipping up these actions online,and then running away themselves," Starmer said in a televised address.
The British Prime Minister stressed that there was "no justification" for what he called "far-right thuggery" and vowed that those responsible would be brought to justice.
The Home Secretary, Yvette Cooper, stated that anyone involved in criminal disorder and violence would pay a price and that communities must feel safe. The Sunday Express quoted Cooper as saying that she was preparing to call in the army if rioting continues, because of concerns that the police forces could become overwhelmed and exhausted.
At the same time, British police promised to arrest and prosecute criminals swiftly, assuring that the UK has enough prison space to house offenders.
The Daily Telegraph stated on the 4th that no matter the excuses, violent riots are unacceptable. Amid the nationwide turmoil, however, Starmer needs to consider deeper issues. Rising numbers of migrants, failure to control immigration, inconsistent enforcement measures, and different opinions over "diversity and inclusion" are making more and more Britons uneasy. Illegal acts of violence must be resolutely stopped and dealt with, but fundamental issues also need to be resolved.
According to Al Jazeera, one of the issues overlooked in the previous British parliamentary elections was the rise of the far right. The far-right, represented by Nigel Farage, the leader of the Reform Party, has been relentlessly inciting claims that Britain is being stolen by foreign immigrants. Farage recently posted on social media X that in the major cities of London, Manchester, and Birmingham, the "white" population no longer constitutes the majority. This claim, however, is entirely false.
Pakistan's "The Nation" reported on the 4th that Britain, which prides itself as a model of Western civilized values, is now in such chaos, with scenes reminiscent of fragile developing countries. Recently, anti-immigrant and anti-Islam sentiments have surfaced in the UK, with parts of the country descending into violent battlefields, terrorizing the Muslim community. The UK has had a disastrous "Brexit" and now faces a cost-of-living crisis. If far-right xenophobia is allowed to take root, British society risks fracturing and falling into bitter infighting.
