US "Does Not Want China's Economic Slowdown"... Criticizes Belt and Road Debt Trap

"A stable Chinese economy is good for the global economy." The White House, which is engaged in overt hegemonic competition with China, expressed that it does not want a recession or weakening of China’s economy. However, it criticized China for recently failing to properly disclose basic information such as youth unemployment rates, stating that "transparency and openness must be ensured." It also announced that it will take serious measures to address the debt issues arising from China’s Belt and Road Initiative ahead of the upcoming G20 summit in India next month.

[Image source=Reuters Yonhap News]

Jake Sullivan, White House National Security Advisor, confirmed the planned visit of Commerce Secretary Gina Raimondo to China at the end of this month during an online briefing on the 22nd (local time). Sullivan said, "Secretary Raimondo will make it clear that the view held by some in China that the U.S. wants China’s economic growth to slow or for China to enter a recession is not true," adding, "That is not what we want."

He emphasized, "The U.S. is focused on protecting national security, securing resilient supply chains, and maintaining economic relations with China," and "As long as China acts as a responsible player in the international economy according to norms, we believe a stable Chinese economy is good for the global economy." He continued, "The Biden administration aims to manage this intense competition with China so that it does not escalate into conflict," confirming that Secretary Raimondo will convey this de-risking message during her visit to China.

Since June, Secretary Raimondo is the fourth senior U.S. government official to visit China, following Secretary of State Antony Blinken, Treasury Secretary Janet Yellen, and Climate Envoy John Kerry. Sullivan stated that they do not expect immediate visible results such as changes in China’s attitude, describing the visit as "laying the groundwork for high-level competition" and "part of managing a complex relationship." He also gave specific examples, saying Raimondo will explain recent U.S. investment restrictions on China and express concerns regarding China’s new counter-espionage law during her visit.

On the same day, Sullivan also pointed out that transparency and openness regarding the disclosure of basic information such as youth unemployment rates in China have declined in recent months. He said, "From our perspective, this is not a responsible action," urging, "For international trust to make sound economic decisions, China must ensure transparency and openness when releasing data."

He also criticized the coercive lending practices under China’s Belt and Road Initiative. Sullivan said, “There is an increasing proportion of coercive and unsustainable lending related to China’s Belt and Road,” adding, "We will present reliable alternatives to counter this." The U.S. has continuously criticized the situation where developing countries fall into debt traps caused by China under the Belt and Road projects, likening it to "debt and snare agreements."

In this context, President Biden is scheduled to visit New Delhi, India, from the 7th to the 10th of next month to attend the G20 summit. At this event, President Biden will discuss the roles and modernization reforms of multilateral development banks such as the World Bank. Sullivan said the U.S. will propose utilizing $200 billion in loans from the World Bank (WB) and the International Monetary Fund (IMF), claiming it is "a much more positive alternative than China’s opaque and coercive financial support."

Additionally, the upcoming G20 summit will include discussions on Russia’s invasion of Ukraine and climate change. It has not yet been disclosed which countries President Biden will hold bilateral meetings with. Local media added that Chinese President Xi Jinping and Saudi Crown Prince Mohammed bin Salman will also attend the summit.

This content was produced with the assistance of AI translation services.