KURE - U.S. calls on China to be more transparent about economic data
2023-08-23 07:08:18 ET
As China continues to grapple with an economic meltdown that could spell trouble for global growth, U.S. national security adviser Jake Sullivan has called on the country to be more transparent about its economy.
Beijing last week decided to stop releasing youth unemployment figures, which had risen to record levels, after months of disappointing economic data that showed the breakdown in China's post-COVID rebound.
China is also cracking down on corporate due diligence, most recently fining U.S. firm Mintz Group ~$1.5M for doing "unapproved statistical work", which could further damage foreign investor confidence in the country.
"These are not, in our view, responsible steps," Sullivan told reporters on Tuesday. "For global confidence, predictability and the capacity of the rest of the world to make sound economic decisions, it's important for China to maintain a level of transparency in the publication of its data."
Sullivan's statements come ahead of U.S. Commerce Secretary Gina Raimondo's visit to Beijing next week, which would make her the third member of President Joe Biden's cabinet to visit China in recent months.
China's ties with the U.S. have been frayed, given a drawn-out tit-for-tat trade war as the U.S. tries to reduce dependence on Chinese supply chains. In a move to ease ties, the U.S. just lifted restrictions on 27 Chinese companies .
Sullivan said Biden would travel to India next month for the G20 leaders summit, where he will work with "like-minded" countries to provide economic support for the rest of the world, mainly through the IMF and the World Bank.
"Given the scale of [China's] coercive and unsustainable lending through the Belt and Road Initiative, we need to ensure there are high-standard leverage solutions to the challenges countries are facing," said Sullivan.
More on China's economy
- China cuts one-year loan prime rate to record low of 3.45%
- China halts youth unemployment data as economy falters
- Contagion risk: How bad is the property crisis in China?
- China's Macro Indicators Suggest A Quiet Crisis
- China Could Be A Ticking Time Bomb
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U.S. calls on China to be more transparent about economic data