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November 28, 2023 12:14 pm
Home World Asia China

US “Hostile” Policies Towards China May Split the World into Two Blocs, Says Stiglitz

Calay News by Calay News
May 13, 2023
in China, Conflicts, Conflicts News, Conflicts Overview, Global Economy, Global Economy News, Global Economy Overview, United States, World, World News, World Overview
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Nobel Prize-winning economist Joseph Stiglitz expressed concern about “hostile” US policies towards China, warning that they could split the world into two blocs. In an interview with AFP during the G7 ministerial talks in Japan, Stiglitz urged Western countries to offer investment rather than impose “lessons” on developing nations.

The US economist suggested that G7 countries put pressure on the United States to understand that its approach is creating divisions in the world. Furthermore, he stressed that while there may be strategic competition, this should not lead to hostilities. Stiglitz also raised concerns that the rivalry between Democrats and Republicans in the United States to be tough on China could hamper international efforts against climate change and other crises.

Stiglitz argued that Washington’s policy toward Beijing is not based solely on concerns about China’s political system, as the United States has relations with other authoritarian regimes. Instead, he emphasized that it is economic and political competition that is of most concern.

The economist pointed out that the West invests very little in developing economies compared to China. Referring to a joke, Stiglitz mentioned that while the West offers lessons, China provides financing. He explained that part of the problem lies in the absence of the G7, especially the United States, in Latin America and Africa, which contradicts their discourse of competing while not investing in those places.

The G7 meeting was attended by the finance ministers of India, Brazil, and Indonesia, as well as representatives of other invited countries such as Vietnam and the Comoros. These leaders were also invited to the G7 summit in Hiroshima, to be held the following weekend.

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