In an interview with CNN, U.S. Deputy Treasury Secretary Wally Adeyemo stated that China is currently facing significant economic challenges that are more likely to impact the region rather than the United States. Although Beijing has the necessary resources to address its economic issues in the short-term, it must confront longer-term structural problems such as demographics and high levels of debt. Adeyemo emphasized that these long-term issues will be increasingly difficult for China to manage over time.
On the previous day, President Joe Biden described China’s economic situation as a “crisis,” attributing its slower growth to a weak global economy and Chinese policies. While Biden did not specify which policies he was referring to, he highlighted China’s struggles with real estate and high youth unemployment.
According to Adeyemo, although certain specific decisions made by China may affect particular companies, the impact on the overall U.S. economy is limited. He explained that a decelerating Chinese economy is likely to have a greater effect on its neighboring countries.
It is important to note that this content was originally reported by Susan Heavey and edited by Doina Chiacu based on the interview conducted with Wally Adeyemo for Thomson Reuters.