China warns of global financial instability resulting from US economic policies
Chinese Foreign Ministry spokesman expressed Wang WenbinHe expressed his concerns about the state of the global economy, at a press conference on Thursday.
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Where the Chinese official said, commenting on the global financial stability report, issued by International Monetary Fund imf Recently, he noted that turmoil in the US banking sector has increased global financial stability risks:
“Global financial stability affects the recovery and development of the global economy, protecting the common interests of all countries, and requires joint global efforts.”
as stressed Wenbin However, the observed global financial risks have a great relationship with the strict adjustments to monetary policies in the United States and other developed countries, as he said:
“Many in the international community have shared the view that the economic and financial policies of the United States pose the greatest challenge to global financial stability
The massive interest rate increases by the US Federal Reserve since last year have also dramatically increased global financing costs and exacerbated erratic international capital flows.
Which led to the bankruptcy of some banks in the United States and Europe, and also made things more difficult for emerging markets and developing countries, and will not lead to the stability and recovery of the global economy and common development in the world.”
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In a related context, high interest rates in developed countries since last year, including the United States, have increased the debt burden of the countries concerned, plunging them into a vicious circle of debt repayment, and exposing them to default on those debts, as the Chinese official continued:
We urge the United States and other developed countries to assess the spillover effects of their economic and financial policies, stabilize market expectations in a timely manner, and avoid creating adverse shocks to global financial stability.
At the same time, we call on developed countries to listen to developing countries on what they think and urgently need, and provide concrete assistance to countries in difficulty,
Stop paying lip service to blame, and live up to its responsibility for maintaining global financial stability and promoting global economic recovery.”