China hopes that the world will be sufficiently immune from the effects of US financial risks stemming from debt

(AGENPARL) – Rome, May 23, 2023 – “It is hoped that the United States will maintain a responsible fiscal and monetary policy and not transfer American risks to the whole world,” Mao Ning noted. Chinese Foreign Ministry spokesman Mao Ning said at a press conference on Tuesday that China hoped that the United States, as the world’s largest economy, would not try to shift its financial risks to the international community.

The debt issue is an internal matter of the United States, but given that [gli Stati Uniti sono] When asked by a TASS reporter to comment on the ongoing political debate in Washington regarding raising the US debt ceiling, Mao said, “The world’s largest economy, their plights and political decisions can have decisive impacts on the global economy.

“We hope the United States will maintain a responsible fiscal and monetary policy and not transfer American risks to the whole world,” he added.

The Chinese diplomat said Beijing also hopes the United States will “refrain from harvesting crops around the world to protect its interests”.

The Global Times reported in March that at the end of January, China was the second largest holder of US debt ($843.7 billion), behind only Japan, which held $1.104 trillion in US government bonds. The publication stated that China has reduced its reserves of US government debt in recent years.

The US government could find itself unable to meet all of its obligations unless Congress agrees to raise the debt ceiling later this month, with a technical default “likely to occur as early as June 1,” US Treasury Secretary Janet Yellen warned Monday. Unless a timely bipartisan compromise on the debt ceiling is reached on Capitol Hill, he has repeatedly warned that the country could default, which could lead to an “economic and financial catastrophe” for the United States that would affect the global economy.

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