US Treasury Secretary Janet Yellen said the US is closely monitoring China’s economic challenges. In addition to the slowdown in China’s economy, concerns are being raised by the threat of a recession in Europe and high inflation affecting global demand for Chinese goods.
“China faces a variety of short-term and long-term global and economic challenges,” Yellen told reporters in New Delhi ahead of the two-day G20 summit.
“That said, China has considerable policy space to address these challenges,” she added.
Chinese President Xi Jinping will be absent from the summit amid heightened trade and geopolitical tensions with the United States and India, which share a long-disputed border.
China’s challenges include “a slowdown in the anticipated recovery in consumer spending due to COVID-19 restrictions, and longstanding problems with the real estate sector and related debt,” he said. Ta.
G20 host India overtook its northern neighbor earlier this year to become the world’s most populous country, but Yellen added that China’s “labor force is starting to dwindle.”
Mr. Xi’s absence will affect US efforts to keep the G20 the leading forum for global economic cooperation, as well as efforts to boost funding for developing countries.
This includes plans to increase the lending capacity of the World Bank and International Monetary Fund to emerging markets by about $200 billion as a better alternative to Beijing’s “mandatory” Belt and Road initiative.
“We are aware of the risks to global growth,” Yellen said.
“There are risks, some countries are definitely affected, but overall the global economy is resilient,” he added.
“The most significant negative impact is Russia’s war on Ukraine,” Yellen added.