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China’s economy is plagued with problems and is a “ticking time bomb,” President Biden said.
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The president pointed to the slow growth and high unemployment in the country.
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China has experienced a disappointing economic recovery so far since the rollback of pandemic restrictions.
According to President Joe Biden, China’s economy is a “ticking time bomb” as the country sees slow growth in its economy and worrying demographic issues.
Speaking at a fundraiser in Utah on Wednesday, the president pointed to several issues facing China’s economy, including the country’s weak growth prospects and high unemployment rate.
“They have some problems. That’s not good because when bad people have problems, they do bad things,” Biden said, per Reuters.
China has so far shown a disappointing economic recovery since reversing its zero-COVID restrictions in early 2023. The country has entered deflation this week, according to the latest consumer price index numbers, reflecting consumer demand that has failed to pick up since Beijing lifted strict lockdown restrictions late last year.
Meanwhile, youth unemployment in China hit a record 21% in July due to a lack of highly skilled and well-paid jobs in the country. The country is on track to lose half of its current population by 2100, according to an estimate by the consultancy Terry Group.
Tensions between the US and China have risen over the past year as US politicians expressed their support for Taiwan and took action to cut economic ties with the country. Recently, Biden signed an executive order restricting US investment in Chinese technology, which has enraged Chinese officials.
“China deeply regrets and strongly opposes the determined introduction of restrictions on investment in China by the US,” the State Department said in a statement Thursday. “This is blatant economic coercion and technical bullying,” it later added.
Beijing officials have suggested that China could retaliate if its companies continue to be treated harshly in the US. That could put U.S.-China relations on a “collision course,” which will ultimately weigh on the global economy, according to “Dr. Doom” economist Nouriel Roubini.
Read the original article on Business Insider
