(RoyalPatriot.com )- According to a report by the Epoch Times, Secretary of State Antony Blinken has urged the Chinese Communist Party to “act responsibly” in how it handled the ongoing debt crisis of China Evergrande Group.
The real estate giant caused uncertainty in global markets, with more than 1,300 housing projects in roughly 280 cities now in question. It’s the most heavily indebted developer in the world, with more than $300 billion owed.
Concern about the imminent collapse of the business caused a massive global market sell-ff, and there has been wide speculation that it could send massive economic shockwaves all over the world. Many believe that this could potentially trigger a 2008-style scenario, with the value of shares and plummeting globally.
In an interview on October 6 with Bloomberg Television, Blinken said that China must balance making “sovereign economic decisions” for itself with taking into consideration the “profound ramifications” and “profound effects” their decisions also have on the rest of the world.
Hasn’t Blinken realized after this pandemic that China doesn’t actually care much about how its actions impact the rest of the world?
“so certainly when it comes to something that could have a major impact on the Chinese economy we look to China to act responsibly and to deal effectively with any challenges,” he added.
Do you think he actually trusts China, or he’s saying this in absolute desperation?
Perhaps they may just listen this one time!
Fears over the collapse of the group have grown as even more Chinese real estate developers have failed to make payments on their debts. Fantasia Holdings, another Shenzhen-based business, failed to more payments worth over $300 million on October 4, and it’s unclear whether those payments will be made any time soon.
Yi Gang, the head of the Chinese central bank the “People’s Bank of China” held a meeting last week with authorities from the nation’s top 24 banks as well as the country’s banking regulations to talk about the way forward and what can be done to ensure the “stable and health development” of the real estate industry.
If we’ve learned anything from China’s actions over the last few decades, it’s that the country wouldn’t rule out currency manipulation to solve the problem. And that would have truly profound implications globally.