US President Joe Biden has escalated the smear campaign against China, referring to the country as a “ticking time bomb” due to its economic challenges and weak growth. This statement comes on the heels of a newly-announced executive order that restricts US investment in certain high-tech industries in China. Chinese experts believe that Biden’s remarks are aimed at distracting the domestic audience from pressing domestic issues and gaining political advantage for his potential 2024 presidential campaign.
Despite recent diplomatic exchanges between senior Chinese and US officials, experts argue that there has been no substantial easing of bilateral tensions. Given the US’ reluctance to alter its foreign policy stance on critical issues such as Taiwan, the South China Sea, and economic and trade relations, particularly in the high-tech sector, it is anticipated that the US will adopt a more assertive approach towards China.
During a political fundraiser in Utah, Biden commented, “China is in trouble… That’s not good because when bad folks have problems, they do bad things,” according to Reuters. Biden’s characterization of China’s economic situation as problematic is seen as an attempt to showcase his ability to boost the US economy, thus bolstering his image for a potential second term.
Xin Qiang, deputy director of the Center for American Studies at Fudan University, noted that such rhetoric is a common strategy used by US presidential candidates during campaign seasons to divert attention from contentious domestic issues and rally voter support.
Sun Chenghao, a fellow and head of the US-EU program at the Center for International Security and Strategy at Tsinghua University, warned that this smear campaign could have adverse implications for the global economy.
The “economic woes” narrative pushed by some Western media and politicians does not accurately reflect China’s economic reality. China’s robust economic recovery, outpacing many major economies, has played a pivotal role in driving global economic revival. Fluctuations in economic indicators are normal during the recovery process, experts argue.
Amidst external challenges, the Chinese government has proactively employed policies to stimulate consumption and boost the private economy. While certain price decreases have been observed, China’s overall money supply remains stable, and deflation risks are minimal.
Zhou Mi, a senior research fellow with the Chinese Academy of International Trade and Economic Cooperation, emphasized that China’s efforts to stabilize its economy are in contrast to the US, which faces mounting financial concerns and debt burdens.
Despite challenges, experts contend that both China and the US should enhance cooperation, particularly in macro-economic policy coordination and global economic governance. Escalating “decoupling” between the two countries could exacerbate existing issues and create further complications.
In light of China’s ongoing economic recovery and growing foreign investment, global investors are increasingly optimistic about China’s economic prospects. China’s role as a stabilizing force in the global economy is highlighted, while international financial institutions express confidence in the country’s long-term development.
As the two nations navigate their economic challenges, experts stress the importance of patience and collaborative efforts to ensure stable economic growth and cooperation between China and the US.