Biden called China a "time bomb"

China is a "ticking time bomb" due to its economic problems, said US President Joe Biden , noting that Beijing is in trouble due to weak growth.

“They have some problems. It's not good because when bad people get in trouble, they do bad things," the American leader said ( quoted by REUTERS ).

Biden noted that China's economic growth has slowed, and the number of people of retirement age exceeds the number of people of working age.

On August 10, Biden signed an executive order that would allow the US Treasury Department to ban or restrict US investment in China in sensitive technologies. The measure also applies to semiconductors, microelectronics, quantum information systems and some artificial intelligence technologies.

Biden's decision is aimed at preventing American experience and capital from helping Beijing develop technologies that can support its military modernization and undermine US national security, the White House explained.

China's GDP in the second quarter of 2023 grew by 0.8% compared to the first (then growth was 2.2%). This result was higher than the 0.5% expected by analysts.

In annual terms, the indicator increased by 6.3%, accelerating from 4.5% in the first three months of 2023, but falling well below the forecasted 7.3%, the agency notes. “The data suggests that the post-COVID boom in China is clearly over,” said economist Carol Kong.

Other analysts polled by Reuters said the latest data raises the risk that Beijing will miss its stated 5% economic growth target by the end of 2023.

As follows from the data of state statistics, in July in China for the first time in a year a decrease in prices (deflation) by 0.3% was recorded. In addition, there is a decline in exports (minus 5% yoy) and imports (minus 7.6% yoy). China's trade with the EU and the US, as well as the countries of ASEAN (Association of Southeast Asian Nations), has decreased, but has increased with RUSSIA.

China's economy is in a "downward spiral," writes BLOOMBERG . Instead of the expected boom after the end of the covid-19 pandemic, exports are falling, youth unemployment has reached an all-time high, and deflation threatens to drive the economy into stagnation, the agency said.

it notes that one of the reasons for the worsening economic situation was the decline in real estate prices , which led to the bankruptcy of a number of developers. In addition, the situation was influenced by the tough policy of the authorities in this area, including the restriction of loans for developers.

To maintain economic growth, Chinese leader Xi Jinping will need to reverse government measures that are unfavorable for business and curtail some of his ambitious foreign policy projects, in particular the One Belt, One Road initiative aimed at promoting economic cooperation, the agency writes.