China tells US to fix its own debt problems

• Chinese Embassy in Zambia asked the US to work on monetary policies.
• Republicans in the House are threatening to refuse to vote on a new debt ceiling.
• The national debt of the United States is approximately $31 trillion.

Washington: After U.S. Treasury Secretary Janet Yellen called China a “barrier” to debt reform in Africa this week, Chinese officials in Zambia had a pointed response – get your own house in order.

The Chinese Embassy in Zambia said on its website Tuesday “the biggest contribution that the United States can make to the debt issues outside the country is to act on responsible monetary policies, cope with its own debt problem, and stop sabotaging other sovereign countries’ active efforts to solve their debt issues.”

Republicans in the House are threatening to refuse to vote on a new debt ceiling, a figure that reflects money already spent and now owed by the government, in order to put pressure on the Biden administration and Democrats to cut spending programs. So far, the Biden administration has refused to negotiate, relying on hardline Republicans to back down in the face of pressure from businesses, investors, and moderates.

The national debt of the United States is approximately $31 trillion, up from $5.6 trillion in 2000, due in part to increased spending for an aging population, outlays for the Iraq and Afghanistan wars, COVID-19 programs, and tax cuts that reduced revenues.

Yellen and IMF

Yellen and IMF Managing Director Kristalina Georgieva arrived separately in Zambia on Sunday to emphasize the importance of debt reform in Africa.

Zambia defaulted on its debt in 2020 and has made little progress in restructuring it with Chinese and private creditors to date, contributing to citizens’ poverty.

According to the World Bank, the world’s poorest countries face $35 billion in debt-service payments to official and private-sector creditors in 2022, with China accounting for more than 40% of the total.

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