the resistance of The USA against cheap financial assistance of the world Bank for China provides new irritation between Beijing and Washington. US President, Donald Trump wants to cut off the second largest economy of the world Bank loans. "Why is lending the world Bank, China money? How can this be?" Trump wrote on Friday evening on Twitter. "China has a lot of money, and if you have none, create them." In China's state media said at the weekend, the American resistance was "absurd". Finally, China is a developing country.
one of the main tasks of the Washington-based world Bank, fighting poverty in developing countries through granting loans. After a new Plan is far less than in 2017, with $ 2.4 billion will flow this year, about 1.4 billion dollars in China.
in addition to the economic rise of China, the decline could also be a change at the helm of the world Bank, whose President is traditionally from the USA.
The current chief David Malpass - a Confidant of the Minister of the Treasury Steven Mnuchin - was promoted in April of Trump to the top of the Institute. He is regarded as a critic of China and its strategy of increasing political and economic influence of the people's Republic of infrastructure projects in third countries, such as in the case of the controversial "Silk road Initiative".
world Bank credit decline in views
China's state media quoted experts who dismissed the US-resistance as tactics in the trade war. "It is entirely legitimate and appropriate that China as a developing country, in the enjoyment of the lending program," said Bai Ming, a researcher at China Academy for international trade and cooperation, "Global Times". Because the Trumps have a problem with pressure in the trade talks to its limits, grab it now to other means.
The world Bank itself was, however, a further decline of the loans to China. "The world Bank loans to China have decreased significantly and will go back as part of an Agreement by all of our shareholders, including the United States," said a spokesman on Saturday in Washington. China is behind the US and Japan is the third-largest shareholder, and has 4.8 per cent of the voting rights.
"Not for the vile purposes"
US Treasury Secretary Mnuchin had previously demanded that caps lending to China. As reasons, he cited the economic strength of the people's Republic and systematic human rights violations in the North-Western Region of Xinjiang. His government "could block any individual credit", but their influence on the world Bank, in order to reduce financial aid to China.
Chuck Grassley from the Senate Finance Committee asked the world Bank to put funding to the tune of $ 50 million for a project in West China on ice. In view of the suppression of Muslim Uighurs in the Region is the suspicion that behind the alleged training centre for a re-education camp hides that with million is to be promoted according to his information.
According to officially unconfirmed estimates from China's authorities in a hundred have put thousands of people in such institutions officially described as institutions of further education. Grassley pointed out that the money the world Bank should not be for "vile purposes" is to be used. China also awarded for geopolitical motives of self-loans to third countries. Thus, the System would be led ad absurdum, said the Senator. The United States also have high liabilities compared to China that is buying up American Treasury bonds after Japan, the second-largest foreign lender to the United States.
Various points of conflict
in addition to the trade war tensions between the US and China have intensified recently over the handling of Beijing, the Uighurs and the protests in Hong Kong. According to the US Senate, the US had decided, the house of representatives a bill for the protection of the Uighurs in North-West China.
It should allow for penalties against Chinese government officials made for the oppression of the Muslim people group. Add to this the Trump signed "human rights and democracy regulation" to Hong Kong, has filed with the US Parliament, behind the democratic forces in China's special administrative region.
the Greatest point of Conflict for a year-long trade war between the two largest economies in the world. It should not be this week, at least a partial agreement that will Trump impose on the next Sunday new punitive tariffs on consumer goods from China in the amount of 150 billion US dollars.
Listen to the latest episode of the podcast "decision-making in 2020" with a United States correspondent, Alan Cassidy and Philip also on Spotify or iTunes.
Created: 08.12.2019, 13:40 PM