Three years ago, as part of a phase one trade deal with the United States, China pledged not to seek trade dominance by devaluing its currency. In any case, however, if China allows its currency to weaken, the options for the Biden administration may be limited.
China has provided more than $500 billion to developing countries through lending programs, making it one of the world’s largest creditor nations. Many of these borrowers, including several African countries, have suffered financially since the pandemic and face the possibility of falling behind in their debt repayments.
The United States, along with other Western countries, put pressure on China So that some of these countries can restructure their debts and reduce their debt amounts. But for more than two years, China has insisted that other creditors and multilateral financial institutions absorb financial losses as part of its restructuring, which has stalled the loan bailout process and left hundreds of developing countries Thousands of people are at risk of falling further into poverty.
International creditors, including China, agreed in June to a debt relief plan with Zambia that would include a moratorium on interest payments and extend loan terms. The deal does not require the World Bank or the International Monetary Fund to cancel debt, and global policymakers like Yellen say they can expect similar debt restructuring in poorer countries.
Human rights and national security issues
Tensions over national security and human rights have created an atmosphere of mutual distrust, spilling over into economic relations. The flight of a Chinese surveillance balloon across the United States this year has deeply disturbed Americans, and members of Congress are pressing the administration to reveal more about what they know about the balloon.Biden’s Chinese leader Xi Jinping’s recent labelingalso as a “dictator,” irritated Chinese officials and state media.
U.S. officials remain concerned about China’s human rights abuses, including the crackdown on pro-democracy protests in Hong Kong and the detention of mostly Muslim minorities in the northwestern Xinjiang region. A senior Treasury official, speaking on condition of anonymity before Ms.
Chinese authorities continue to protest the various sanctions imposed by the United States on Chinese companies, organizations and individuals for national security threats and human rights violations. Sanctions against Lee Sang Bok, Minister of Defense of China. The Chinese government has cited these sanctions as reasons for refusing high-level military dialogue.