On June 8, Foreign Ministry Spokesperson Wang Wenbin presided over a regular press conference. A reporter asked, according to reports, the Institute of International Finance recently released the “Global Debt Monitoring Report”, which shows that the global debt scale has reached 305 trillion US dollars, which is 45 trillion US dollars more than before the outbreak of the new crown epidemic. It topped the list at $31.4 trillion, which has further sparked international concerns about U.S. government spending and borrowing costs. What is China’s comment?
Wang Wenbin said that as the world‘s largest economy and the issuer of major international currencies, the United States‘ fiscal situation and policy choices have important spillover effects on the world economy, and it should adopt responsible fiscal and monetary policies. However, the United States has abused the hegemony of the US dollar for a long time, borrowed wantonly to pass on the crisis, adopted unlimited quantitative easing policies, and exported inflation to the world, which made the debt problems of some emerging markets and developing countries worse, and the economy was hit hard, seriously hindering the recovery of the global economy. It once again confirmed the famous saying of Connally, Secretary of the Treasury of the Nixon administration of the United States: The dollar is our currency, but it is your trouble.
Wang Wenbin emphasized that we urge the United States to effectively adopt responsible fiscal and monetary policies, and work with other economies to strengthen macroeconomic policy coordination, jointly maintain international economic and financial stability, and promote world economic recovery.