US 'deeply concerned' about Chinese loans to Pakistan, says 'may be used for coercive leverage'

The top American diplomat is travelling to New Delhi on a three-day official visit from March 1 to 3. Lu said that the US is talking to countries in the region comprising India to make their own decisions and not feel compelled by any outside partner.

Team Newsable

First Published Feb 25, 2023, 9:30 AM IST | Last Updated Feb 25, 2023, 9:30 AM IST

A senior United States official has said that the US is deeply concerned that the loans being given by China to India's immediate neighbourhood, Pakistan and Sri Lanka, may be used for coercive leverage.

Speaking to reporters ahead of the India trip of Secretary of State Antony Blinken, Donald Lu, Assistant Secretary of State for South and Central Asia said, "Concerning Chinese loans to countries in India's immediate neighbourhood, we are deeply concerned that loans may be used for coercive leverage."

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"We are talking to India, talking to countries of the region about how we help countries to make their own decisions and not decisions that might be compelled by any outside partner, including China," Lu said.

Earlier in the day, Pakistani Finance Minister Ishaq Dar announced that the Board of China Development Bank (CDB) has approved a USD 700 million credit facility to the country.

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Responding to a question Lu said that there has been a serious conversation between India and the US on the issue of China.

"We have had serious conversations about China, both before the latest scandal over this surveillance balloon but in the aftermath. So, I fully expect those conversations will continue," he said.

"The Quad is not, in fact, an organisation that is against any single country or group of countries. The Quad stands for trying to promote activities and values that support the Indo-Pacific, free and open Indo-Pacific, but the Indo-Pacific that's prosperous and supports the values that we as these four countries represent," he said.

(With inputs from PTI)

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