The political landscape crackled with tension recently as President Joe Biden, while addressing an audience at a political fundraiser in Utah, unloaded his critical perspective on China’s economic woes.
Not one to hold back his punches, Biden drew a rather concerning image of China’s faltering economic strength.
Biden on the missteps in China’s growth numbers
While painting a grim picture of China’s economic state, Biden brought forth an intriguing, albeit somewhat inaccurate claim. In his fiery oration, he mentioned that China’s growth, which used to be a roaring 8% annually, has drastically dropped to a measly 2%.
However, data from the horse’s mouth, China’s National Bureau of Statistics, revealed different figures. The economy displayed a growth of 4.5% in the initial quarter, followed by 6.3% in the next.
Furthermore, the Gross Domestic Product showcased a mere increase of 0.8% between April to June from the prior quarter, succeeding a 2.2% boost in the opening quarter.
This isn’t the first time Biden’s unfiltered rhetoric has sent ripples across the diplomatic community. Casting our minds back to June, he unabashedly dubbed President Xi Jinping as a “dictator.”
An act which, unsurprisingly, irked China, leading them to label these remarks as nothing short of provocation.
US-China ties: Walking on thin ice
With ties already hanging by a precarious thread, the recent remarks add fuel to an already blazing fire. Just a brief glance into the recent past reminds us of the U.S. Secretary of State, Antony Blinken’s visit to China.
This venture had a singular purpose – to stabilize and mend the fragile relationship between the two superpowers. Yet, with the ties already fraying at the edges, Beijing went on record to state that this relationship is witnessing its nadir since the inception of formal ties back in 1979.
And if that wasn’t enough to keep the diplomatic cauldron boiling, on Wednesday, Biden took a bold step. An executive order was signed, curtailing new U.S. investments in China, particularly in sensitive domains like computer chips.
This move, naturally, didn’t sit well with China, the globe’s second-largest economy. Expressing deep-seated concerns, China didn’t shy away from stating that it reserves every right to counteract.
While China grapples with its economic hiccups, the story on the home front, the USA, unfolds quite differently. As China’s consumer domain plunges into deflation and its factory-gate prices maintain their descending trajectory, the rest of the world, particularly the U.S., paints a contrasting image.
The U.S., which proudly stands as the world’s economic behemoth, is currently engaged in a tough battle against sky-rocketing inflation. But, the silver lining for the States has been its flourishing labor market.
The global theater is ever-evolving, with superpowers like the U.S. and China continuously jockeying for a dominant position. While leaders like Biden wear their heart on their sleeve, echoing their criticisms unabashedly, it remains to be seen how this saga unfolds.
As economies, relationships, and strategies intertwine in this intricate web of geopolitics, all eyes remain trained on the next move from both sides of the Pacific. For now, however, the pot continues to simmer, with the lid threatening to blow off any minute.
