China urged the United States and other developed countries to assess the spillover effects of its economic and financial policies. China’s foreign ministry said that “the economic and financial policies of the United States pose the greatest challenge to global financial stability.”
China warns of US economic and financial policies
Wang Wenbin, a spokesperson for China’s Foreign Ministry, expressed concerns about the state of the global economy at a press conference on Thursday.
Commenting on the International Monetary Fund’s recent Global Financial Stability Report, which indicated that turmoil in the US banking sector increased global financial stability risks, the Chinese official said: “Global financial stability affects the recovery and development of the global economy.” The world economy is the common interests of all countries, and requires the world’s joint efforts.”
Webin stressed that “the observed global financial risks have a great relationship with the strict adjustments of monetary policies in the United States and other developed countries”:
Many in the international community shared the view that the economic and financial policies of the United States pose the greatest challenge to global financial stability. The massive interest rate increases by the US Federal Reserve since last year have dramatically increased global financing costs and exacerbated erratic international capital flows.
“This not only led to the bankruptcy or seizure of some banks in the United States and Europe, but also made things more difficult for emerging markets and developing countries, which is not conducive to the stability and recovery of the global economy and the common development of the foreign ministry,” the Foreign Ministry spokesman added.
“Research shows that commercial creditors from developed countries own nearly half of the debt of highly indebted countries in the world. Since last year, rising interest rates in developed countries including the United States have increased the debt burden of the countries involved, plunging them into a loop deflated and exposed to debt default,” the Chinese official continued, emphasizing:
We urge the United States and other developed countries to assess the spillover effects of their economic and financial policies, stabilize market expectations in a timely manner, and avoid creating adverse shocks to global financial stability.
“At the same time, we call on developed countries to listen to developing countries on what they really think and urgently need, provide concrete assistance to countries in difficulty, stop lip service and blame, and live up to their responsibility to maintain global financial stability and promote economic recovery,” he concluded. Global”.
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