China defends ‘New Silk Road’ against debt complaints

Chinese officials have defended Beijing’s initiative to build railways and other infrastructure across Asia against complaints it leaves countries with too much debt after Malaysia cancelled two high-profile projects. Officials said “Belt and Road” facilities built with Chinese loans might require time to pay off but are valuable for developing economies.

The deputy chairman of Cabinet’s planning agency, Ning Jizhe, said “people’s livelihoods and economic development have been boosted.” He said, “no ‘debt trap’ was created.” Malaysian PM Mahathir Mohamad scrapped plans this month for Chinese-built projects, including a $20 billion railway he said his SE Asian country cannot afford.