The Chinese Embassy in Zambia has rebuked the United States over its debt limit and “extraordinary measures” proposed by Treasury Secretary Janet Yellen to prevent US debt default. Yellen had mentioned on Monday that it was crucial for Zambia to restructure its outstanding debt, something that the embassy criticized in response, emphasizing that the United States has been a “catastrophic debt problem.”
Chinese Embassy Condemns US Debt Restrictions and Yellen’s Latest Comments
Last week, US Treasury Secretary Janet Yellen urged Congress to pass legislation or the nation might default on its debts if the federal government reduces its spending. She also said it was well-known that the Treasury must take “extraordinary measures” to keep debt at bay until the end of June 2023. According to federal monetary data, the nation’s total debt was $31.4 trillion in the previous week. Yellen also provided feedback on Zambia on Monday after meeting Chinese officers in Zurich the earlier week.
“I particularly raised the problem with Zambia (with Chinese officers) and requested their cooperation in making an effort to reach a rapid decision. And our talks were constructive.” Yellen was quoted as saying according to a report by Reuters. On the other hand, Zambian Finance Minister Situmbeko Musokotwane mentioned the assembly with Yellen and Chinese officers didn’t reach a decision about a course of debt restructuring. The Chinese Embassy in Lusaka responded in direct to Yellen’s comments, stating that the United States is not willing to pay off its own debts.
“The greatest contribution the US can make to debt problems abroad is to pursue responsible monetary policies, address its own debt problem, and stop sabotaging other sovereign countries’ active efforts to resolve their debt problems.” mentioned the Zambian officers based in the United States. The Chinese Embassy in Lusaka added:
Assuming that Secretary Yellen’s statements about debt are accurate. The best place to find solutions for US debt problems is not outside the US. The Treasury Department should resolve the US domestic debt issue, given its knowledge and capabilities as well as its ability to implement.
The critique from the Chinese Embassy highlights the underlying communication issues between China and the US that have been ongoing for many years. In May 2022, the most famous study by Chinese specialists had urged leaders of the BRICS countries (Brazil, Russia, India, China?, and South Africa) to finish their reliance on the US dollar. China wasn’t invited to House Speaker Nancy Pelosi’s visit to Taiwan in August 2022. The following month, the Chinese Communist Party-backed Global Times published an opinion editorial stating that the dollar’s rise may be a sign of change and “the beginning of another nightmare” for other nations.
What diplomatic solution and the underlying issues between China and the US can be addressed? Share your thoughts in the comments section below.
