China criticises U.S. inflation and fiscal policy, urges responsible macroeconomic coordination for global recovery

Wang Wenbin

8th June 2023 – (Beijing) Chinese Foreign Ministry Spokesperson Wang Wenbin has criticised the United States for its reckless fiscal and monetary policies, which have spread inflation to other parts of the world and held back global economic recovery. Wang’s comments came in response to the Global Debt Monitor report issued by the Institute of International Finance, which showed that the global debt stock has reached $305 trillion, $45 trillion higher than before the COVID-19 pandemic.

The United States, with the world’s highest national debt of $31.4 trillion, has raised concerns about its government spending and borrowing costs. Wang noted that as the world’s largest economy and issuer of a major international currency, the United States should have adopted responsible fiscal and monetary policies given the heavy spillover effect of its fiscal conditions and policy choices on the world economy.

Wang criticized the United States for its long-standing use of dollar hegemonyreckless borrowing, crisis shifting, and limitless quantitative easing. He argued that these policies have spread U.S. inflation to other parts of the world, exacerbated debt and economic problems in emerging economies and developing countries, and seriously held back global recovery.

He quoted former Treasury Secretary John Connally’s famous phrase, “The dollar is our currency, but it is your problem,” to underscore the hazards of dollar hegemony.

Wang urged the United States to adopt responsible fiscal and monetary policies and work with other economies to enhance macroeconomic policy coordination. He emphasised the need to jointly safeguard international economic and financial stability and contribute to global recovery.