China attacks the US at the G20: they are the cause of global economic problems
The G20 is not going as smoothly as the US expected. China has escalated economic criticism of the United States, accusing them of causing the global turmoil that has led to growing debt suffering in developing countries.
Such remarks – made by Chinese officials in multilateral and bilateral meetings – became more common after Russia's invasion of Ukraine in February, when China warned that US war and sanctions against Russia had triggered offensive effects. relapse with an increase in costs and economic risks in developing countries.
At a virtual meeting of G20 finance ministers and central bank governors on Thursday and Friday, China's Finance Minister Liu Kun said the G20 bloc should work together to address the current "serious economic situation " .
" The first is to strengthen macroeconomic policy coordination, address global challenges such as inflation, food and energy security, and prevent severe spillover effects triggered by policy adjustments in some countries ," Liu said in a statement. press release from the Chinese Ministry of Finance on Friday, without naming any nation.
“ The second is to push development finance, objectively analyzing the causes of debt vulnerability, and to carry out debt disposal in a prudent manner. The World Bank and the other multilateral and commercial creditors should also proceed with the debt disposal according to the principle of 'joint action and fair burden ' ”.
Liu's remarks came after a Chinese Foreign Ministry official said that interest rate hikes in "a developed country" sparked turmoil in the global market and worsened debt and inflation in developing countries. development, in an apparent reference to the United States.
"The recent deterioration in debt and inflation in some developing countries is closely linked to the aggressive interest rate hikes and budget cuts in a developed country, which have unleashed violent turbulence on the international financial market," he said. the head of the Asia Department of the Chinese Foreign Ministry, Liu Jinsong, in a meeting with the Pakistani Ambassador to China Moin ul Haque on Monday.
Liu said the "developed country" move was aimed at containing domestic inflation and serving its domestic political agenda.
Developing countries, which economists believe should suffer most from the global economic storm, as the strengthening of the US dollar and the soaring interest rates on debt make it more difficult to pay off their debts.
Some countries in South Asia and Africa are also heavily indebted to China. Pakistan, Sri Lanka and Zambia are among the countries with the highest inflation rates and with domestic economies in serious difficulty, and some have already defaulted on international debts.
China has often been accused by the West of implementing "debt trap diplomacy" since it launched the ambitious Belt and Road Initiative in 2013 and lent large sums of money to developing nations. in Asia and Africa through its infrastructure projects.
Since a common G20 framework for debt restructuring was established late last year, following the expiration of the Debt Service Suspension Initiative (DSSI) – launched in 2020 to help some of the countries poorer people to postpone debt payments until the end of 2021 to counter the impact of the pandemic – Western leaders pressured China to become more involved in the debt restructuring process of struggling developing countries.
So the West accuses China of being at the root of the debt problem of developing countries. China, which is the high rate policy set by the Fed to selfishly fight its own inflation, which is a problem. In the meantime, however, half the world is entering an economic and financial crisis that joins the energy crisis, preparing the basis for an explosive situation.
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article China attacks the US at the G20: they are the cause of world economic problems comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-attacca-gli-usa-al-g20-sono-la-causa-dei-problemi-economici-mondiali/ on Sat, 15 Oct 2022 06:00:04 +0000.