China's Ministry of Foreign Affairs has issued a warning to developed nations, particularly the United States, to consider the spillover effects of their economic and financial policies. The Ministry stated that the aggressive adjustments in the monetary policies of developed countries, particularly the US, pose a major challenge to global financial stability.
During a press conference on Thursday, a spokesperson for the Chinese Ministry of Foreign Affairs emphasized that global financial stability is crucial to the recovery and development of the world economy and the interests of all countries. He also noted that the recent International Monetary Fund (IMF) Global Financial Stability report pointed out that the turmoil in the US banking sector has increased the risk of global financial instability.
The spokesperson stated that the massive interest rate hikes by the US Federal Reserve since last year have significantly increased global financing costs and exacerbated disorderly international capital flows. This has not only led to the bankruptcy or takeover of some banks in the US and Europe, but it has also made things more difficult for emerging markets and developing countries, which is not conducive to the stability and recovery of the world economy and the common development of the world.
The Ministry of Foreign Affairs spokesperson urged the US and other developed countries to prudently assess the spillover effects of their economic and financial policies, stabilize market expectations in a timely manner, and avoid creating adverse shocks to global financial stability. The official also called on developed countries to listen to the developing countries about what they actually think and urgently need, provide tangible help to countries in difficulty, stop paying lip service and shifting blame, and step up to their responsibility for maintaining global financial stability and promoting global economic recovery.
China's concerns over the US's economic and financial policies come amid increasing tensions between the two nations on various fronts, including trade and technology. The warning also reflects a growing sense of unease among global economic powers about the impact of US policies on the world economy.
