President Joe Biden referred to China as a potential “ticking time bomb” due to its economic challenges during a recent Utah fundraiser.
He emphasized his desire for a rational relationship with China despite these concerns. These remarks echo his previous comment in June when he labeled China’s President Xi Jinping as a “dictator,” sparking tension between the two countries. China responded by deeming these statements provocative.
The strained relations were further highlighted by US Secretary of State Antony Blinken’s recent visit to China aimed at stabilizing their diplomatic ties, which Beijing acknowledged as their lowest point since 1979.
China is possibly entering a phase of slower economic growth, experiencing stagnant consumer prices and wages, in contrast to global inflation trends.
In July, China’s consumer sector faced deflation, and factory-gate prices continued to decline. In comparison, the United States, as the world’s largest economy, has grappled with inflation while maintaining a robust labor market.
In response to these economic concerns, President Biden signed an executive order restricting new US investments in China’s sensitive technologies, particularly computer chips.
China, being the second-largest global economy, expressed serious reservations about the order and reserved the right to implement countermeasures.