U.S. President Joe Biden has expressed concern over China’s economic challenges, labeling it a potential threat.
What Happened: Amid the rift with Xi Jinping, President Biden drew attention to China’s economic difficulties, describing the nation as a “ticking time bomb,” reported The Guardian.
During a political fundraiser in Utah, he identified high unemployment and an aging workforce as indicators of impending trouble.
"China is in trouble."
"They have got some problems. That's not good because when bad folks have problems, they do bad things," Biden said.
The president said he did not want to hurt Beijing and wanted a rational relationship with the Asian nation.
This came after Biden approved an executive order on Wednesday banning certain new U.S. investments in China in sensitive technologies like computer chips and A.I., which has raised serious apprehensions in China.
Why It Matters: Biden’s comments echo his earlier statements in June when he referred to China’s President Xi Jinping as a “dictator.” China had reacted strongly to this, terming it a “political provocation.”
Evidence of China’s economic struggles is seen in its economy slipping into deflation in July, with factory-gate prices persistently falling. The country’s consumer price index fell 0.3% in July, as reported by the National Bureau of Statistics of China (NBS).
These economic conditions have sparked worry among E.U. companies and economies that view China as a crucial trading partner.
Meanwhile, Biden’s special climate envoy, John Kerry, in July, said there might be a potential meeting between the U.S. president and his Chinese counterpart later this year.
This meeting could bring about significant results at the Asia-Pacific Economic Cooperation Leaders' Summit, scheduled for November in San Francisco.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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