China warned that the U.S. economic and foreign policy is creating an uneven stage paving way for global financial instability. Beijing urged the U.S. and other developed Western nations to assess their economic policies that hurt developing nations. A spokesperson from the Chinese Ministry of Foreign Affairs expressed concerns over America’s foreign policy affecting other countries.
The spokesperson said that American policies are not only bringing down their banks (Silicon Valley Bank, Signature Bank, and Credit Suisse), but the spillover affects other nations that have little or nothing to do with the developments. The world is faced to bear the brunt of American economic failures which have negative effects on developing nations.
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“The economic and financial policies of the U.S. pose the biggest challenge to global financial stability,” said spokesperson Wang Wenbin.
Additionally, Wenbin mentioned that many in the international community shared the same opinions about the dangers of U.S. economic policies. Moreover, he believed U.S. policies have “led to the bankruptcy or takeover of some banks in the U.S. and Europe”. The spokesperson added their mistakes and inability to handle things have made it difficult for developing nations to thrive.
“It made things more difficult for emerging markets and developing countries. Which is not conducive to the stability and recovery of the world economy and common development of the world,” he said.
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China Says the U.S. Holds Half of the World Debt
Wenbin said that the U.S. holds almost half of the debt of debt-ridden countries in the world. In addition, he blamed commercial creditors for creating a mess in the economy and blamed U.S. policies for allowing them to go on a financial rampage.
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“Research shows that commercial creditors from developed countries hold almost half of the debt of debt-ridden countries in the world. Since last year, the higher interest rates of the U.S. increased the debt burden of the countries concerned”. He also added, “Plunging them into a vicious cycle of debt repayment and exposing them to debt default,” the Chinese official said.