Why Did US President Biden Call China A ‘Ticking Time Bomb’?
US President Joe Biden has expressed concern about China’s economic and demographic problems, describing the country as a “ticking time bomb” that could pose a threat to the world.
He cited China‘s slowed economic growth and an aging population where retirees outnumber the working-age population.
Speaking at a political fundraiser, Biden pointed out that China’s high unemployment rate could lead to instability and negative actions.
Despite these concerns, Biden stated that the United States is not seeking confrontation with China, but rather aiming for a rational relationship.
He mentioned the need to monitor China’s activities, particularly its “belt and road” infrastructure initiative, which he referred to as “debt and noose” due to the terms attached to the funding.
China’s economy has faced challenges, including weakened consumer spending, slowing exports, high youth unemployment, and a struggling property market.
Its GDP growth in the first half of the year was 5.5%, lower than expected. This is worrying as much of the world’s production is dependent on China, potentially affecting the global economy.
The US administration has taken steps to curb investments in China, reflecting its strategy to reduce reliance on Chinese supply chains and challenge China’s dominance in certain sectors.
Tensions between the US and China have been heightened by incidents such as alleged espionage activities and military encounters in the South China Sea.
High-level US officials, including Treasury Secretary Janet Yellen and Secretary of State Antony Blinken, have engaged in dialogue with Chinese counterparts in an effort to ease tensions and improve relations. However, concrete outcomes from these discussions have yet to be seen.
US President Joe Biden has also signed an executive order to ban certain US investments in sensitive technology in China.
The order allows the US Treasury secretary to prohibit or restrict investments in Chinese entities in sectors such as semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.