China says loans might be a burden for Asian economies but worth it in long run

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 canceled two high-profile projects.

The officials today said the "Belt and Road" facilities built with Chinese loans might require time to pay off but are valuable for developing economies.

The deputy chairman of the Cabinet's planning agency, Ning Jizhe, told reporters "people's livelihoods and economic development have been boosted." He said, "no 'debt trap' was created." Malaysian Prime Minister Mahathir Mohamad scrapped plans this month for Chinese-built projects including a USD 20 billion railway he said his Southeast Asian country cannot afford.

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