'Wall Street Emperor' Dimon: "Urgent Need to Solve US Fiscal Deficit... China Is Not the Enemy"

US Total Debt Estimated at $34 Trillion
"Delaying the Problem Will Make It Unmanageable Later"
China Is a Competitor, Not an Enemy

Jamie Dimon, CEO of JP Morgan Chase, known as the "Emperor of Wall Street," pointed out the astronomical financial deficit of the United States and urged the government to take proactive measures. Regarding China, he expressed the view that the U.S. should compete rather than go to war.

In an interview with Sky News in the UK on the 15th (local time), CEO Dimon said, "The U.S. government must quickly focus on reducing the fiscal deficit," warning, "If the clearly inevitable fiscal deficit issue is continuously overlooked, it will have to be resolved later in a much more uncomfortable way."

[Image source=Reuters Yonhap News]

He mentioned the rapid interest rate hikes, tax cuts, and large-scale economic stimulus measures during the COVID-19 pandemic that expanded the deficit, emphasizing, "Any country can drive growth by incurring debt, but that does not always lead to good outcomes."

According to U.S. Treasury data cited by CNBC, the federal government has so far overspent by $855 billion (about 1,160 trillion won) beyond the revenue collected in the 2024 fiscal year (October 2023 to September 2024). Although this is less than the $1.7 trillion overspending in the 2023 fiscal year, it remains a serious level. Recently, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), also warned that "the U.S. is spending 17% of federal revenue to service its debt, which currently amounts to about $34 trillion (about 40 quadrillion won)," indicating that U.S. fiscal spending is unsustainable.

CEO Dimon also spoke about international relations, including China. He stated, "Thanks to long-standing partnerships like NATO (North Atlantic Treaty Organization), the U.S. holds an advantage in economic confrontation with China," but added, "China is a fierce competitor, not a Western enemy. Competition does not have to become war." However, regarding the close relationship between China and Russia, he assessed, "As long as China somewhat sides with Russia, we will have a difficult time." Russian President Vladimir Putin arrived in Beijing today to begin a two-day state visit, including a summit with President Xi Jinping.

Meanwhile, Dimon's remarks came just one day after the Biden administration imposed increased tariffs on Chinese trade. On the 14th, the White House instructed the U.S. Trade Representative (USTR) to raise tariffs on key strategic industries such as Chinese electric vehicles, steel, aluminum, and semiconductors in response to China's unfair trade practices. In response, Chinese diplomatic authorities condemned it as "crazy suppression of China's normal trade activities" and vowed to "take all necessary measures."

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