US politicians, including President Joe Biden, and some mainstream media outlets have initiated a campaign to criticize China’s economy while promoting the concept of “Bidenomics.” However, Chinese experts argue that the lingering risks within the US economy, coupled with its toxic policies, have already inflicted damage and continue to pose a significant threat to the global economy.
Recent warnings from Federal Reserve officials about “significant” inflation risks that may necessitate further interest rate hikes have raised concerns. This hawkish tone has led to expectations that the US Federal Reserve might continue its aggressive monetary tightening.
Chinese experts highlight that additional US interest rate hikes could not only harm the US banking sector and its overall economy but also have severe repercussions for the global economy. Emerging and developing markets could experience capital outflows, higher energy costs, and increased debt burdens due to these actions.
In contrast, despite facing downward pressure, the Chinese economy is predicted to be a major contributor to global growth. Experts note that while the US portrays its economy as stable, there are underlying risks and the potential for an economic crisis due to its monetary policies, aggressive tightening measures, and protectionist trade and investment policies.
The US’ recent smearing campaign against China’s economy is seen as politically motivated, particularly as the US presidential election cycle intensifies. Analysts suggest that President Biden’s efforts to highlight challenges in China’s economy may be an attempt to divert attention from domestic conflicts and low approval ratings.
Comparatively, China’s economy is expected to outperform other major economies and continue contributing significantly to global growth in 2023 and beyond. The International Monetary Fund (IMF) forecasts China’s growth at 5.2 percent in 2023, while the US is projected to achieve 1.8 percent growth. China’s growth is anticipated to account for a substantial portion of global growth this year.
Highlighting the US’ history of causing economic turmoil, such as the 2008 global financial crisis, experts emphasize that the US is not just a “ticking time bomb” but a “bomb that has already gone off.”