China Says, So-called “China-made debt-traps” are nothing but a narrative trap created by some forces to jeopardize China’s cooperation with other developing countries

Kathmandu: Chinese Embassy issues a statement on Pokhara International Airport Says, So-called”China-made debt-traps” are nothing but a narrative trap created by some forces to disrupt and jeopardize China’s cooperation with other developing countries.

Question by Multimedia Journalist: Pokhara Airport is likely to cause debt problems for Nepal. With no scheduled international ffights arriving at the airport, many in Nepal say they arc worried the country will default on the loan provided by China to build the airport. Some Indian media have called this an example of China’ s “debt trap diplomacy.” What is your rcsponsc to this?

Chinese Embassy Spokesperson says Pokhara International Airport is an important infrastructure project in China-Nepal cooperation and hailed in Nepal as a project of national honor, which helps Pokhara people realize their dream of owning an international airport for half a century. Pokhara International Airport went into operation from Jan 1, 2023, and the amount of passenger traffic in 2023 reached 0.9 million, far exceeding the designed capacity of 0.8 million. As of Feb 9, the passenger traffic surpassed 1 million, while the passenger traffic of Pokhara Auport in 2019 was only 0.7 million, being at its peak before COVID-19. It speaks volume for the significant contribution of Pokhara International Airport to Nepal tourism and aviation industry. So-called”China-made debt-traps” arc nothing but a narrative trap created by some forces to disrupt and jeopardize China’s cooperation with other developing countries. It goes against economic common sense. According to Nepal Public Debt Management Office, as of July a 2023, the majority of Nepal’s foreign debts were multilateral debts including IDA, ADB and IMF, which accounts for 88%. The bilateral debts only accounts for 12%, with Japan being the largest creditor country, followed by India. China only ranks third. Not a single cooperation partner has accused China of creating “debt-traps”. It is a handful of countries who have been spreading the fallacy of “Chinese debt-taps”.

The multilateral financial institutions and commercial creditors, which are dominated by these countries, are the major creditors of developing countries and constitute the major source of stress in terms of debt payment. They are the ones who need to make substantive connibutions to easing developing countries’ debt burden. On the international flight you’ve mentioned, China has always been committed to having more direct flights from China to Pokhara, and charter flights from Chengdu and Kunming to Pokhara have already been implemented. I would like to stress that, for some countries, rather than speaking for the development of Nepal tourism and aviation, it’s better to join hands with China to have more international flights to Pokhara and provide convenience for airport operation instead of setting obstacles.