After US Treasury Secretary Janet Yellen called China an “obstacle” to African debt reform this week. Chinese officials in Zambia issued a firm response: get your own house in order.
China tells U.S. to fix its own debt problems; The Chinese Embassy in Zambia said on its website on Tuesday that. The greatest contribution the United States can make to the country’s external debt issue is to pursue a responsible monetary policy. Address its own debt problems, and stop sabotaging the active efforts of other sovereign states.” to settle their debts.”
House Republicans are using a risky, unusual threat to refuse a vote on the new debt ceiling. A figure that reflects the amount already spent. Now owed to the government, to pressure the Biden administration and Democrats to scale back its spending plans. The Biden White House has so far refused to negotiate, relying on hard-line Republicans to back down to pressure from businesses. Investors and moderates.
U.S. National Debt;
The U.S. national debt is about $31 trillion, up from $5.6 trillion in 2000. Thanks in part to increased spending on an aging population, spending on the wars in Iraq and Afghanistan. Covid-19 programs and revenue-sapping tax cuts. .
Yellen and International Monetary Fund Managing Director Kristalina Georgieva arrived separately in Zambia on Sunday to highlight the need for debt reform in Africa.
Zambia defaulted on its debt in 2020. Has so far done little to restructure it with Chinese. Private lenders, a situation that has helped push citizens into poverty.
China tells U.S. to fix its own debt problems; According to the World Bank. In 2022 the world’s poorest countries faced a debt service burden of $35 billion on public creditors and the private sector. More than 40 percent of which was owed to China.
The African Development Bank said last week that interest rate hikes. By the US central bank aimed at curbing inflation. The strengthening of the US dollar have increased the debt burden of African countries.