- The US encountered a burgeoning $31.5 trillion debt, hitting the statutory debt ceiling.
- As per data, until November 2022, China accounts for $870 billion in US credit.
China blames the United States for crippling other nations with their debt. With a soaring $31.5 trillion debt – the new all-time high statutory debt ceiling, the United States is at the epicenter of accusations. One among those is China’s blast off against the US for “sabotaging” other nations’ measures.
Moreover, the recent US sanctions in late 2022 piled up against Chinese interests in the Russo-Ukraine and semiconductors sectors. Chinese regulators and media scrutinize the US for being “dangerously irresponsible” in increasing the probability of an economic catastrophe if the debt ceiling rises further.
The Chinese embassy stated:
“The biggest contribution that the US can make to the debt issues outside the country is to act on responsible monetary policies, cope with its own debt problem, and stop sabotaging other sovereign countries’ active efforts to solve their debt issues”.
Notably, China retaliated the criticism in response to the U.S. Secretary of the Treasury Janet Yellen’s comment – “the Chinese have been a barrier to concluding the negotiations,” last week. Among the G-20 nations, reportedly, China ranks among the top creditors to developing countries.
Also, the embassy in Lusaka commented:
“Assuming Secretary Yellen’s statements about debt were correct, the best prospect of the debt issues outside the US would be the US Treasury Department solving the US’ own domestic debt problem, given how well she knows about facts, her professional capacities and her team’s implementation ability.”
On the bright side, the U.S. Treasury Department reported taking mandatory measures in addressing this escalation. Significantly, the Treasury noted that it will initiate a “debt issuance suspension period” from January 19, 2023 to June 5, 2023.