It's the ultimate economic version of the pot and the kettle and all that talk about being black. After having been on the receiving end of US scolding over their mishandled economy, the shoe has moved to the other foot. In recent weeks senior Chinese officials have been pointing the finger back at Americans for mismanaging their own economy. Among their criticisms is the “warped conception” of market regulation following the subprime mortgage debacle now eroding the world economy. At the latest World Trade Organization meeting, the Chinese envoy called upon the US to halt their dollar’s freefall depreciation before its complete failure further sends world oil and food prices upwards. To see who agrees, and how the Olympics fit in,
A professor of economics at Columbia University agrees: “US credibility and the credibility of US financial markets is zero everywhere in the world. Anybody looking at this from the outside says ‘there’s been a lot of hot air coming out of the US, so why would we listen to these guys when they didn’t know how to manage risk?’" Adding to the Chinese anger is the fact that the US has failed to stop the plunging dollar — a problem as China keeps most of its 1.76 trillion reserve in dollars, which have been plummeting in value.
The impact of the Olympics has added a small bump to the Chinese — though the proportion of the economy tied to the Games is small — meaning a post-Games slump might not materialize, though Olympian improvements are all investments in China for the future.
Is the recently criticized country now strong enough to point fingers? Was China right to criticize the US on its handling of the economy?