Prof. Huang Jing (Professor and Director of the Institute of the U.S. and Pacific Studies at Shanghai International Studies University) recently published an article in Global Times. Prof. Huang noted that the U.S. government is facing a debt crisis as the Republican-controlled Congress refuses to raise the debt ceiling, which could lead to a default on its $31.4 trillion debt by June 1.He notes that the“debt ceiling”is a political tool used by both parties to pressure each other, especially when there is a divided government.
Prof. Huang argues that the debt default could have disastrous consequences for the U.S. and globale conomies, such as a stock market crash, a recession, a surge in unemployment, and a loss of confidence in the U.S. dollar and treasury bonds.
Prof. Huang reckons that the U.S.and China, as the world's largest economies and trading partners, have a common interest in maintaining the stability of the global financial order and preventing a debt default, and the two countries need to cooperate again to achieve this goal.
Read the full article in Chinese: https://m.huanqiu.com/article/4CnpP4UXEYp
Subscription
