US infighting threatens world: China media

2013-10-10 07:19
China finance minister Zhu Guangyao. (Roman Yandolin, AFP)

China finance minister Zhu Guangyao. (Roman Yandolin, AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Beijing - Chinese state media hit out at US lawmakers on Thursday, a week ahead of a potential US default, urging them to "stop manufacturing crises" that threaten the global economy.

The China Daily newspaper wrote in an editorial that five years after the global financial crisis "it is pitiful that the US is now putting the fragile world recovery under renewed threat with its mind-boggling political infighting".

The paper, which is run by the Chinese government, added: "The astonishing failure of the US Congress to put national needs before their partisan interests has sparked fears among investors and governments around the world that maybe it is time to think about the unthinkable".

The newspaper's sternly-worded missive comes as Washington remains deadlocked ahead of the 17 October deadline by which time it must raise its $16.7 trillion borrowing ceiling or risk defaulting on its debt obligations.

The warning also comes two days after the International Monetary Fund cut its forecast for world economic growth for 2013 and 2014, citing both US political infighting and China's slowing growth as particularly worrisome factors.

"The prospect of dimmer global growth predicted by the International Monetary Fund should make it a matter of urgency for US politicians to stop manufacturing crises," the paper stated.

China is the largest foreign owner of US debt, holding $1.277 trillion in Treasury bills in July, according to the latest available US government figures.

Beijing has in recent days stepped up its calls for Washington to come to an agreement on raising the debt ceiling, highlighting the "inseparable" relationship between the two countries' economies.

On Monday, Chinese Vice Finance Minister Zhu Guangyao told reporters in Beijing that "the clock is ticking" and warned a potential US default would have global repercussions.

"We hope that before October 17, the US will take credible steps to address its disputes over the debt ceiling in a timely fashion, avoid a default and ensure the safety of Chinese investments in the US and ensure the process of global economic recovery will not be seriously affected by this," Zhu said.

In Washington, the White House was scrambling to hold meetings with members of both parties in the hope of forging a deal to resolve both the debt-ceiling debacle and the partial shutdown of the US federal government.

But Republicans have been hesitant to agree to any deal without concessions from Democrats on reforming federal spending and entitlement programmes.

Read more on:    imf  |  us  |  china  |  us shutdown

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.