Chinese Ambassador to the US: "If China collapses, will the US prosper? ... A futile delusion"

Direct Rebuttal to Economic Crisis Theory: "China Continues to Grow"
"Confident in Preventing Systemic Risk"

Chinese Ambassador to the U.S. Xie Feng directly refuted ongoing economic crisis theories surrounding China’s economy, including the possibility of real estate company defaults and deflation.

On the 31st of last month (local time), Ambassador Xie Feng published an op-ed in the Washington Post (WP) titled "China’s Economy Is Doing Better Than You Think." He directly challenged recent economic crisis speculations about China, especially those circulating in Western countries.

However, Ambassador Xie acknowledged in the op-ed that "the road to economic recovery in the post-COVID era will not be smooth." He added, "there will often be twists and turns and uneven progress." This implies recognition that China’s economic recovery after abandoning the "zero-COVID" policy has fallen short of expectations.

One of China's largest real estate companies, Evergrande Group, built a housing complex in Huai'an, Jiangsu Province, eastern China.
[Image source=AFP Yonhap News]

In fact, China’s major real estate company Country Garden (Biguiyuan) announced on the 30th of last month that it incurred losses exceeding 9 trillion won in the first half of this year. The company stated it is facing "the most difficult situation since its founding" and mentioned the possibility of default.

The Chinese economy is currently under pressure on multiple fronts. Industrial production and export growth rates remain sluggish, and youth unemployment has exceeded 20%.

Nevertheless, Ambassador Xie stated that China’s economic growth rate still stands at around 5.5%, and the World Bank (WB) has forecasted 5.6% growth by the end of this year.

He also pointed to a rebound in China’s domestic consumption, noting that "520 million Chinese people, more than the population of the United States, went to movie theaters this summer." Regarding exports, he emphasized that "China accounts for 14% of the global export market."

Ambassador Xie highlighted the role of the Chinese government as well, stating that various incentives are being introduced to stimulate consumption and revitalize the economy. He expressed confidence, saying, "There is ample room in the policy toolbox," and "We are confident that we can prevent systemic risks in advance."

He continued, "Some criticize China for dragging down the global economy during this temporary economic adjustment period," and questioned, "Is it fair to propagate theories that China could collapse?"

He further stated, "The idea that China could economically collapse while the United States continues to prosper is a complete delusion," and urged, "The U.S. should lift technology export controls, investment restrictions, economic sanctions, and high tariffs against China."

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