US Treasury Secretary Janet Yellen said on Tuesday that international economic institutions such as the IMF and the World Bank “serve as a counterweight” to loans provided by China, in particular, AFP reported.

“These institutions reflect the values ​​of the United States,” Treasury Secretary Joe Biden told a House committee.

The United States’ involvement “in these institutions is one of the primary means of engagement with emerging markets and developing countries,” she added.

Aid from international financial institutions “comes with strict governance, accountability and debt sustainability requirements” and “serves as an important counterweight to opaque and volatile lending from other countries such as China,” Ms. Yellen added.

China is one of the main lenders to developing countries, and the terms on which loans are granted are regularly criticized by the international community, in particular for their lack of transparency.

For example, the restructuring of Sri Lanka’s foreign debt was delayed because China was initially unwilling to accept it and offered other loans to pay off old debts.

Yellen opposed the World Bank loan to China. “We will not support or vote for any World Bank loans to China. We will use our voice to resist,” she said.

The United States has the most influence of any member country of the World Bank.