Is this China’s chance to shine as US debt-ceiling impasse raises global fears?
- US debt debacle seen contributing to a relative rise in China’s status, while a failure to reach a deal in Washington would ‘cause significant volatility’
- Foreign investors could be finding that Washington’s image has been tainted by the US-China trade dispute, along with ‘violations’ of World Trade Organization rules

China’s on-again, off-again image as a destination for foreign investors may brighten in the coming weeks as debt-ceiling talks in Washington fan global worries about the stability of US assets, according to economists.
Even if President Joe Biden and the US Congress reach a deal that raises the current US$31.4 trillion debt ceiling and thwarts an international credit crisis, their tense negotiations paired with other news from Washington could make China look relatively attractive, some analysts contend.
The TPP is an 11-member country Pacific Rim trade deal, which the US exited in 2017 before it was finalised. Quirks in US lending rules precipitated the financial crisis.
Negotiations this month in Washington are intended to work out a budget-spending deal that would push sceptical lawmakers to allow raising the debt ceiling as soon as June 1, the date when the treasury says the US could start defaulting on commitments.