Chinese investments in the Asian Pacific region are not to be feared, the Chinese government said. On the contrary, Australia needs to follow their lead.
According to Radio NZ, Australia also needs to follow the example by allocating funds for capital. The Pacific islands need a sizeable amount of income to get their economic bearings, and China is readily available to lend such help. The Chinese have responded in kind to Australian fears that China is creating a condition of debt and hard-to-pay loans in the Asia Pacific.
News among Australian publications heralded the nation's fears, while China remained adamant and, at one point, challenged Australia to cite one instance where the debt was hard to repay due to Chinese lending requirements.
China also challenged Australia to at least try to emulate or follow the US and China's lending model in the region.
According to Australian Foreign Minister Penny Wong, the investment model currently being used by the US is a good example. ABC Australia reports that Japan was okay with an agreement with the US in regard to lending funds in the region is a good example of this, and that Australia and New Zealand should follow suit.
New Zealand, for its part, has been actively trying to get involved in helping the region to rise economically. Through its Strategic International Development Fund, the nation has shown that it is ready to help other nations in the region, provided that the need is great and the requirements for lending are met.
Only last month, foreign minister Julie Bishop aired her fears that the Chinese were trying to get into lopsided deals that fell in their favor. Her concern was that island nations were slowly losing grip on their sovereignty all in exchange for Chinese loans.
However, the Chinese Foreign Ministry, through its spokeswoman Hua Chunying, cleared these allegations in Beijing. Speaking to reporters, she cleared up fears and dispelled rumors that China had quite a few 'debt traps' in place with Pacific nations who had loans with them.
She also had sources, citing a few Pacific government officials who issued comments to the contrary, to Australia's fears of a growing Chinese debt trap.
