Asian neighbours may bear the brunt rather than the well-positioned European and US economies.
Beijing has short-term tools to manage its economy, but unemployment and huge debt are longer-term structural challenges.
Beijing has the resources to deal with its economy short-term but must face longer-term structural economic issues such as demographics and high debt, Adeyemo said in television interviews.Fears of an economic slowdown have gripped China, whose leader skipped the G20 summit this past weekend. Adeyemo, on CNN, said China’s economy faces “significant headwinds,” adding: “a slowing Chinese economy is going to have an impact, but mostly on their neighbours”.
“The US is well-positioned to withstand the Chinese headwinds, but the places where you have to be concerned about are their neighbours, countries in Asia, but also a number of countries that have borrowed from China,” Adeyemo told a separate event at the Economic Club of New York. He said the US government was paying close attention to the developments.