The Abe government is considering proposing a set of rules for infrastructure investment in developing countries when Japan hosts the Group of 20 summit in Osaka in June, after China has been criticized for engaging in "debt-trap" diplomacy with its aggressive project financing, according to sources.
Some of Beijing's infrastructure financing projects have been criticized for burdening recipient countries with debts they can't repay, forcing them into concessions in exchange for debt relief.
China has not openly opposed Japan's proposal in working-level preparatory meetings, but government sources said it is too early to say whether Beijing is willing to accept the proposed rules to increase transparency of contracts and give due consideration to the debt repayment capacity of countries receiving investments.