U.S. President Joe Biden expressed concern about China’s economic challenges during a political fundraiser in Utah, referring to the nation as a “ticking time bomb.”
While aiming for a rational relationship with China, Biden emphasized the potential consequences of economic distress leading to unfavorable actions.
Highlighting his worries, Biden noted China’s growth rate inaccurately, attributing an 8% annual growth rate to maintain stability, which has reportedly fallen to around 2%.
The Chinese National Bureau of Statistics, however, reported a growth of 4.5% in the first quarter and 6.3% in the second quarter, with a mere 0.8% increase in GDP in April-June, following a 2.2% expansion in the previous quarter.
Although China’s foreign ministry did not immediately respond to Biden’s remarks, his statements echo past comments that have strained U.S.-China relations.
In an earlier fundraiser in June, Biden referred to President Xi Jinping as a “dictator,” provoking strong reactions from China and worsening tensions, coinciding with U.S. Secretary of State Antony Blinken’s efforts to stabilize relations during his visit to China.
Recently, Biden signed an executive order to restrict new U.S. investments in China’s sensitive technological sectors, particularly in areas like computer chips.
This move, which China expressed grave concern over, adds to the existing tensions between the two countries.
China’s economy faced challenges as its consumer sector experienced deflation and factory-gate prices continued to decline in July, in contrast to global inflation trends.
In comparison, the United States, the world’s largest economy, has been grappling with high inflation but has maintained a robust labor market.
Biden’s concerns about China’s economic situation underscore the intricate web of diplomatic and economic ties between the two global giants, hinting at potential future developments that could impact international relations and economies.