Casting Stones From a Glass House: Yellen’s Comments on Zambia’s Debt Restructuring Draw Criticism From Chinese Embassy

The Chinese embassy successful Zambia denounced the United States implicit its indebtedness bounds and the “extraordinary measures” Treasury caput Janet Yellen has implemented to stave disconnected a U.S. indebtedness default. Yellen said connected Monday that it was precise important that Zambia restructure its debt, but Zambia sees it differently. The embassy castigated Yellen’s comments successful response, stressing that the U.S. has a “catastrophic indebtedness problem.”

Chinese Embassy successful Zambia Denounces U.S. Debt Limit and Yellen’s Recent Comments

Last week, U.S. Treasury Secretary Janet Yellen urged Congress to summation the government’s spending bounds oregon the state could look default connected its debts. She besides noted that the Treasury would person to leverage “extraordinary measures” to support the indebtedness astatine bay until aboriginal June 2023. Federal fiscal information indicates that the country’s indebtedness surpassed $31.4 trillion earlier this week. Yellen besides made comments astir Zambia connected Monday, aft gathering with Chinese officials successful Zurich the week prior.

“I specifically raised the contented with Zambia (with Chinese officials) and asked for their practice successful trying to scope a speedy resolution. And our talks were constructive,” Yellen is cited arsenic saying successful a report published by Reuters. On the different hand, Zambian concern curate Situmbeko Musokotwane said the gathering with Yellen and Chinese officials did not scope a decision successful respect to a indebtedness restructuring process. The Chinese Embassy successful Zambia past reproached the contented successful nonstop effect to Yellen’s commentary and said that the U.S. needs to hole its ain indebtedness problems.

“The biggest publication that the U.S. tin marque to the indebtedness issues extracurricular the state is to enactment connected liable monetary policies, header with its ain indebtedness problem, and halt sabotaging different sovereign countries’ progressive efforts to lick their indebtedness issues,” the Zambian-based officials successful Lusaka wrote. The Chinese embassy successful Lusaka further added:

Assuming caput Yellen’s statements astir indebtedness were correct, the champion imaginable of the indebtedness issues extracurricular the U.S. would beryllium the U.S. Treasury Department solving the US’ ain home indebtedness problem, fixed however good she knows astir facts, her nonrecreational capacities and her team’s implementation ability.

The Chinese Embassy’s disapproval highlights the underlying connection issues China and the U.S. person been dealing with for years. In May 2022, reports noted that Chinese experts had urged the leaders of BRICS nations (Brazil, Russia, India, China, and South Africa) to extremity their dependence connected the U.S. dollar. China was not pleased with House Speaker Nancy Pelosi’s visit to Taiwan successful Aug. 2022. The precise adjacent month, the Chinese Communist Party-backed Global Times published an opinion editorial that insisted the rising dollar whitethorn go “the opening of different nightmare” for different countries.

What is your instrumentality connected this diplomatic speech and the underlying issues astatine play betwixt China and the U.S.? Share your thoughts successful the comments conception below.

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