Because of economic problems
Biden: China is a ‘ticking time bomb’
8/11/2023 4:47 am
China is in economic difficulties: the country has recently slipped into deflation. That makes the People’s Republic particularly dangerous, says US President Joe Biden. “When bad people have problems, they do bad things.”
US President Joe Biden has described China as a “ticking time bomb” because of its economic challenges. “They have some problems. That’s not good because when bad people have problems, they do bad things,” Biden said at an event for Democratic Party donors in Utah.
China’s consumer prices and factory prices continued to fall in July. The country thus slipped into deflation. Many experts took this as a sign of a slowdown in China’s economy and slower economic growth.
It is the first time since November 2020 that both consumer and producer prices have fallen in China. Deflation, the opposite of inflation, means a decline in the general level of prices. Most economists consider prolonged deflation to be more dangerous for the development of an economy than slightly rising prices.
China is “very disappointed”
“China is in trouble,” Biden said. He does not want to hurt China and wants a rational relationship with the country. US President Biden signed an executive order on Wednesday authorizing the US Treasury Department to ban or restrict certain American investments in Chinese companies in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.
The Chinese government was then “very disappointed” with the actions of the United States. The restrictions would “seriously undermine the interests of Chinese and American companies and investors,” the Chinese embassy in Washington said. China will closely monitor the situation and resolutely defend its rights and interests.