On Friday, US Treasury Secretary Janet Yellen said that the United States is “carefully” watching China’s economy, as the deceleration in the globe’s second-largest economy increases worries for global development.
Many are tense about China’s battles, with the threat of a slump in Europe and high inflation in many significant economies contributing to a decline in the need for Chinese goods.
Ahead of a two-day G20 summit, Yellen told reporters in New Delhi that Beijing encounters a combination of both short and longer-term World challenges, economic challenges that we’ve been watching carefully.
That said, China has quite a bit of policy space to manage these challenges, she added.
Xi Jinping, the President of China will skip the meeting of leaders at a time of intensified trade and geopolitical pressures with the United States and India, with which it shares a lengthy and debated border.
The absence of Xi will affect the US’s proposal to keep the G20 the leading medium of World economic cooperation and its steps towards a financing push for developing nations.
That contains an intent to boost the World Bank and International Monetary Fund lending capability for emerging countries by some $200 billion as a better alternative to China’s “coercive” Belt and Road Initiative.
While aware of the threats to World development, Yellen said she had “been shocked by the power of global development and how resilient the global economy has demonstrated to be.”
She added that while there are threats and some nations that have been impacted, overall, the World economy has been resilient.
