A prominent Chinese economist has pushed back against Bridgewater Associates founder Ray Dalio\u2019s views on the debt situations in China and the United States, as debate over the fiscal directions of the world\u2019s two largest economies heats up.<\/p>\n
Xu Gao, chief economist at Bank of China International (China), said in a recent 9,000-word article that Dalio was mistaken in calling for China to deleverage, arguing that such a view \u201cmisjudges\u201d the country\u2019s debt dynamics.<\/p>\n
\u201cChina\u2019s recent debt-rollover issues were not caused by excessive borrowing, but by overly harsh deleveraging policies that disrupted liquidity,\u201d Xu wrote in the article titled \u201cWhere Did Dalio Go Wrong on National Debt?\u201d<\/p>\n
\u201cRather than doubling down on deleveraging, we need to correct the mindset behind it, which has already weighed heavily on the macro economy,\u201d Xu said.<\/p>\n
His comments, posted to social media on Thursday, came as economists and policy circles have been discussing whether more stimulus is needed in the second half of the year to shore up China\u2019s economy amid external uncertainties, a prolonged property downturn, and persistent deflationary pressures.<\/p>\n
Attention is now turning to an upcoming Politburo meeting that is expected to set the policy tone<\/a> for the second half.In the US, worries over the sustainability of US government debt have intensified following the passage of the \u201cBig Beautiful Bill\u201d<\/a>, which raised the debt ceiling by US$5 trillion and prompted warnings of a looming \u201cdebt bomb\u201d from figures such as Elon Musk and Dalio.<\/p>\n","protected":false},"excerpt":{"rendered":"A prominent Chinese economist has pushed back against Bridgewater Associates founder Ray Dalio\u2019s views on the debt situations…\n","protected":false},"author":2,"featured_media":31047,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,29144,3686,9341,29141,99,512,29138,29145,29140,29147,164,3120,29142,29137,7759,29146,29139,29143],"class_list":["post-31046","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-bank-of-china-international","tag-beijing","tag-big-beautiful-bill","tag-bridgewater-associates","tag-business","tag-china","tag-chinese-economist","tag-dalio","tag-debt-bomb","tag-deleveraging","tag-economy","tag-elon-musk","tag-liu-he","tag-ministry-of-finance","tag-politburo","tag-ray-dalio","tag-us-treasuries","tag-xu-gao"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/31046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=31046"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/31046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/31047"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=31046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=31046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=31046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}