China's Debt-Relief Stance Sends Mixed Signals to Global Economy
The split between the US and China is hindering efforts to stabilize the global economy and fight poverty in developing countries, threatening to undermine global growth and block moves to ease the debt burden for dozens of cash-strapped nations. China's approach to global lending clashes with the traditional playbook employed by multilateral lenders and the US Treasury, and its insistence that the IMF and World Bank take losses on their loans has blocked agreement on debt restructuring. Without a plan to cut debt payments, the economies of 60% of poor nations, which are already in financial distress or close to it, will flounder, sapping global growth.