China, US ‘to up economic coordination’ as Evergrande crisis casts shadow
- The sides hold ‘constructive’ economic talks with global recovery ‘at crucial stage’, according to Chinese statement
- Beijing raised concerns about Washington’s tariffs, it says, after the second such talks of the Joe Biden presidency
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US, Chinese diplomats’ meeting in Zurich paves way for continued talks
Statements from both sides stopped short of revealing specific details of the matters discussed, but observers said debt issues could have been among them.
“The US debt problem has an impact on the world market, and China Evergrande also has an impact on the US stock market,” said Chen Fengying, a senior researcher with the China Institute of Contemporary International Relations.
Evergrande, China’s biggest residential home builder by sales last year, is struggling under the weight of US$305 billion in total liabilities following years of expansion beyond its core property businesses. Concern about its ability to repay its massive debt load is causing turbulence in financial markets.
US Secretary of State Antony Blinken referenced Evergrande in an interview with Bloomberg this month, urging China to act “responsibly” in dealing with the crisis to avoid turbulence that might go beyond China’s economy and financial markets.
