US To China: Be More Transparent About Economy Data

Since the beginning of the year, the yuan has depreciated more than 5 percent against the dollar. Apparently, the 5% growth that the Chinese authorities are planning for 2023 is in question.

Not only China, but the whole world is concerned about the state of the Chinese economy due to turbulence in the real estate and finance sector, as well as stability of economic growth. International investors are dumping billions of dollars-worth of Chinese stocks. Capital flight from China is becoming increasingly worrisome. Western capital is in danger. The most vulnerable country is the United States that is now demanding “more transparency” from Beijing on Chinese economic data, so that effective decisions could be made.

During a press conference, US national security adviser Jake Sullivan demanded from China “more transparency about data regarding its economic downturn, which could affect global growth.”

China’s financial and economic problems continue to aggravate. Last week, the People’s Bank of China, the country’s central bank, was forced to intervene in exchange trading in order to contain the free fall of the yuan. Since the beginning of the year, the Chinese currency has devalued against the dollar by more than 5%. Apparently, the growth of its exchange rate by 5% for 2023 planned by the Chinese authorities is in doubt. There are international analysts who are beginning to talk about a massive financial crisis, like the one that hit Japan in the early 1990s.

Last week, Beijing suspended the publication of statistics on youth unemployment. Many experts consider this decision as an indicator of fragility of the Chinese economy’s post-pandemic recovery.

In this context, Sullivan denounced “the decline in transparency and openness about the most basic data.”

“In our view, these are irresponsible moves,” said Sullivan, according to whom “it is important that China maintains a level of transparency in the publication of its data, for global credibility, reliability, and the capability of the rest of the world to make effective decisions.”

Meanwhile, Beijing is doing everything to regain investor confidence and prevent the threat of a real economic crisis. At the BRICS summit in Johannesburg, South Africa, Chinese President Xi Jinping said that the Chinese economy has “strong resilience, great potential, and is full of energy,” while “the foundations of sustainable long-term development will not change.”