China's 'debt diplomacy' smothers recipient countries like Pak: US

China's development assistance to countries is aimed at increasing their dependency on it, the head of America's aid agency has said, amidst China's attempt to increase infrastructure investment as part of President Xi Jinping's ambitious Belt and Road Initiative.

China had been accused of engaging in "debt diplomacy" by loading developing countries with debt as part of a strategy to build its influence across the region under the BRI.

China has denied criticism that its finance model is predatory and smothers recipient countries like Pakistan and China in debt they cannot pay.

Mark Green, the United States Agency for International Development (USAID) Administrative said the overseas developmental aid of the United States and that of China is fundamentally different.

"They are fundamentally different. So, what we always say is, 'We're working to help countries on their journey to self-reliance.' What we want is for countries to lead their own bright future. We want them to go from being traditional assistance recipients, to partners, to fellow donors," he said.

"China's a very different model. They build dependency. So, the choice is self-reliance versus almost servitude. What they do are loans, and as we're learning more and more, often unsustainable financing that's mortgaging a country's future," Green said.

The US asks countries to take on their own challenges, foster th...

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