President Joe Biden has expressed concerns about China's economic situation, describing it as a "ticking time bomb" and referring to Chinese Communist Party leaders as "bad folks." Despite his administration's efforts to improve overall relations with Beijing, Biden's latest comments represent some of his most direct criticisms of the US's top economic rival.
During a political fundraiser in Utah, Biden made several major inaccuracies about China's economy. He claimed that China's growth had slowed to 2% per year, when in fact it is projected to grow at a rate of 5.2% this year according to economists surveyed by Bloomberg. He also falsely stated that the number of people of retirement age in China is larger than the number of people of working age. In reality, China still has 876 million people of working age compared to 280 million people aged 60 or older.
Biden criticized Xi Jinping's Belt and Road Initiative, describing it as a "debt and noose" due to the high levels of lending to developing economies associated with the program. The US president expressed concerns that when "bad folks have problems, they do bad things."
However, it remains to be seen how Beijing will respond to Biden's latest remarks. While China largely shrugged off previous negative comments from Biden, such as referring to Xi as a "dictator," the relationship between the two countries remains fragile. The US recently imposed new investment curbs, and tensions over Taiwan continue to strain the relationship.
Although Biden's criticisms of China's economy contained factual inaccuracies and exaggerated some of the country's problems, the overall outlook for China remains challenging. The economy grew at a slower-than-expected pace of 5.5% in the first half of the year, leading to concerns about the global ripple effects. China is currently battling deflation, slowing exports, high youth unemployment, and a slumping property market. President Xi's government has been attempting to suppress negative economic news and control discussions on sensitive topics.
Despite the challenges, China's economy is still projected to grow at a faster rate than the US this year. While China's growth has significantly slowed in recent years, the country is focused on achieving "high quality" development and more sustainable growth. The official urban jobless rate in China has remained around 5.2%, although youth unemployment is at a record high of over 20%.
As Biden continues to make critical remarks about China's economy, it remains to be seen how this will impact the already delicate relationship between the two superpowers. With both countries facing a range of economic and geopolitical challenges, finding common ground and maintaining stability will be crucial for the global economy.