WASHINGTON (Reuters) – China is facing significant economic problems that are more likely to affect the region than the United States, U.S. Deputy Treasury Secretary Wally Adeyemo said on Monday, a day after President Joe Biden called China’s economic situation a “crisis.”
Beijing has the resources to deal with its economy short-term but must face longer-term structural economic issues such as demographics and high debt, Adeyemo said in an interview with CNN.
“Those are going to be far harder for them to deal with over time,” he said.
On Sunday, Biden said China’s growth was slowing due to a weak global economy as well as Chinese policies, although he did not cite specific policies. He noted China’s issues with real estate and high youth unemployment.
Adeyemo told CNN that while some of China’s particular decisions will affect certain, specific companies, “when you look at the economy, the United States has some exposure but it’s limited.”
“A slowing Chinese economy is going to have an impact, but mostly on their neighbors,” Adeyemo added.
(Reporting by Susan Heavey; Editing by Doina Chiacu)
