According to the latest report of the US Treasury, the total US national debt reached $34 trillion for the first time, a new historical figure. The total federal debt is expected to exceed $34 trillion in fiscal year 2029, yet this is several years ahead of schedule. The pandemic has shut down the U.S. economy, and debt has grown faster than expected. Both Trump and Biden have borrowed heavily, but the economy and inflation have raised interest rates, and the cost of servicing debt has increased. This breakthrough means that the United States will face the challenge of improving its balance sheet.
However, Biden has not stopped borrowing, and is expected to borrow nearly $1 trillion more by the end of March. In this regard, analysts of US financial institutions said that this continuous debt growth should cause alarm among policymakers. While the U.S. is still looking to borrow, foreign buyers have reduced their purchases of U.S. Treasuries, including China, which has been selling U.S. Treasuries for seven consecutive months. This makes Yellen's search for China's cooperation even more urgent.
Against the backdrop of record high US national debt, US Treasury Secretary Janet Yellen has long set her sights on China and sought China's cooperation. Yellen said during a celebration that Biden wants to manage the U.S.-China economic relationship in a purposeful, prudent and responsible manner. She once again stressed that the United States does not want to "decouple" from China, but to establish lasting communication channels in order to solve problems that arise in a timely manner.
Yellen plans to visit China for the second time this year to discuss cooperation on climate change and financial markets. This shows that she realizes that strengthening cooperation between China and the United States is essential to solve the current difficulties. She also criticized her predecessor Donald Trump's China policy, which she argued had made the United States more vulnerable and isolated in a competitive global economy, undermining America's global standing and the interests of American companies and workers.
China's spokesperson responded to Yellen's remarks, saying that China always believes that the development of healthy and stable China-US economic and trade relations is beneficial to both countries and the world. China hopes that the US side will match its words with deeds and not impose sanctions on Chinese companies while emphasizing cooperation.
The U.S. national debt totals $34 trillion, highlighting the political and economic challenges facing the United States. As debt continues to accumulate, solutions need to be found to improve balance sheets and avoid creating economic and financial risks. The United States** should consider fiscal discipline, as well as spending cuts and debt management to stabilize the country's fiscal position.
In addition, the debt situation of the United States has also aroused the attention of the international community. The trend of foreign buyers** of US Treasuries, especially China's sell-off of US Treasuries for seven consecutive months, is the largest**. This is a wake-up call for the U.S. and means that investor confidence in U.S. bonds has weakened. The United States** needs to take this phenomenon seriously and actively promote cooperation with foreign partners to balance international capital flows.
At the same time, cooperation between the United States and China is crucial. China and the United States are both the world's largest economies, and cooperation is critical to the stability and development of the global economy. Biden's quest for China's cooperation is a positive sign that the United States is willing to move the relationship forward and address existing problems. Cooperation needs to be based on equality, mutual trust and mutual respect, resolve differences through dialogue and consultation, and jointly maintain a sound economic and social order.
In summary, reaching $34 trillion in U.S. national debt is a serious challenge that requires action to improve the balance sheet. At the same time, the U.S. should pay attention to the trend of foreign buyers** of U.S. Treasury bonds and actively promote cooperation with partners such as China. U.S.-China cooperation is critical to resolving the current dilemma and ensuring the stability of the global economy. It is the wisest choice to seek the path of common development through equality, mutual trust and mutual respect.