U.S. urged to be transparent on SVB crisis, adopt responsible macro policy

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Xinhua News

23rd March 2023 – (Beijing) The Silicon Valley Bank (SVB) crisis has triggered turmoil in global financial markets, a Chinese Foreign Ministry spokesperson said Thursday, urging the United States to enhance transparency, adopt a responsible macroeconomic policy, and avoid serious negative spillover effects caused by radical policy adjustments.

Spokesperson Wang Wenbin made the remarks at a regular press briefing in response to a query about Silicon Valley Bank’s collapse, adding that China is paying close attention to relevant developments.

In today’s world, the global financial system is highly interconnected, Wang noted, adding that the problems of U.S. banks are by no means exclusive to the United States, and the SVB crisis has triggered turmoil in global financial markets.

Wang said that China hopes the U.S. side will enhance transparency, strengthen communication with the international community, and make clear a series of issues of general concern to the international community, such as how big the risks are, how to deal with them in the future, and how to minimize spillover effects. This is the responsibility of the U.S. side and the expectation of the international community, he said.

The U.S. dollar is an international currency, and the U.S. monetary policy should not only anchor the domestic economic regulation and control targets, but also carefully evaluate its negative spillover effects, Wang noted.

“We urge the U.S. side to adopt a responsible macroeconomic policy, effectively stabilize market expectations and investor confidence, avoid serious negative spillover effects caused by radical policy adjustments and repeating the mistakes of the 2008 financial crisis,” said the spokesperson.

“We also urge the financial regulatory authorities of relevant countries to take concrete measures to protect the capital safety of all customers, including depositors of all countries,” he added.

China is willing to work with other economies to strengthen macroeconomic policy coordination and jointly safeguard international economic and financial stability, Wang said.