China Has Its Own Fiscal Problems But Calls US Fiscal Crisis “Dangerous”

Posted on July 29, 2011

China has not escaped this latest round of global fiscal crisis and until this week,  it has not particularly taken the US to task for its inability to keep its house in order.  China Daily gets a great deal of copy on the US from Bloomberg.  But this week their state-run news agency, Xinhua, has said:

…[T]he debate over raising the debt ceiling has “kidnapped” the worldwide economy.

“Such political brinkmanship in Washington is dangerously irresponsible,” Xinhua wrote in a commentary published on Thursday.

The $14.3 trillion debt ceiling must be raised by Aug. 2, or the Treasury will not be able to pay its bills on time or in full. Experts have warned of global consequences if lawmakers fail to act.

“The ugliest part of the saga is that the well-being of many other countries is also in the impact zone when the donkey and the elephant fight,” Xinhua said, referring to the symbols for the U.S. political parties. “The potential collateral damage is way too heavy.”

Lawmakers need to set aside partisan politics, Xinhua said.

There has been concern in China since their annual growth rate has slid.  With global retrenchment, they are not finding buyers for their wares as readily as they once did.  They also have inefficiencies built into their own systems.  Here is a presentation (edited)  by Fareed Zakaria from the Munk Debates about  why China will not dominate the 21st century.

And from China Daily, China’s own assessment of its future.


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