President Biden speaks to reporters on July 8
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China’s economy is plagued with problems and is a “ticking time bomb,” President Biden said.
The president pointed to sluggish growth and high unemployment in the nation.
China has seen a so-far disappointing economic recovery since dialing back pandemic restrictions.
China’s economy is a “ticking time bomb” as the nation sees sluggish growth in its economy and worrying demographic issues, according to President Joe Biden.
At a Utah fundraiser on Wednesday, the president pointed to various problems plaguing China’s economy, including the country’s weak growth prospects and high unemployment rate.
“They’ve got some problems. That’s not good because when bad folks have problems, they do bad things,” Biden said, per Reuters.
China has posted a so-far disappointing economic recovery since dialing back its zero-COVID restrictions in early 2023. The nation slipped into deflation this week, per its latest Consumer Price Index data, reflecting consumer demand that has failed to rev up since Beijing lifted strict lockdown restrictions at the end of last year.
Meanwhile, China’s youth unemployment rate notched a record 21% in July, due to a lack of high-skilled and high-paying jobs in the nation. The country is on track to lose half of its current population by 2100, according to an estimate from the consultancy firm Terry Group.
US-China tensions have been inflamed over the past year as US politicians signaled their support for Taiwan and have moved to trim economic ties with the nation. Most recently, Biden signed an executive order that limits US investment in Chinese tech, which infuriated Chinese officials.
“China strongly deplores and firmly opposes the US’s single-minded rollout of restrictions on investments in China,” the nation’s foreign ministry said in a statement on Thursday. “This is blatant economic coercion and tech bullying,” it later added.
Beijing officials have suggested China could retaliate if its companies continue to face harsh treatment in the US. That could put US-China relations on “collision course” that ends up weighing on the global economy, according to “Dr. Doom” economist Nouriel Roubini.