G-20: Xi urges wealthy nations to reduce fallout from rate hikes

NUSA DUA, Indonesia - Chinese President Xi Jinping on Tuesday asked the Group of 20 (G-20) wealthy nations to contain the fallout from interest rate hikes, as the US Federal Reserve moves aggressively to fight inflation.

“We must contain global inflation and resolve systemic risks in the economy and finance,” Mr Xi told the summit of 20 major economies taking place in Bali.

“Developed economies should reduce the negative spillover effects of their monetary policy adjustments and stabilise debts at a sustainable level,” he said.

The Federal Reserve has

raised interest rates to their highest level

since before the 2008 financial crisis as it seeks to tighten money supply in an effort to wrestle back inflation.

The US monetary stance has

pushed the dollar up

to levels not seen in two decades, causing distress for developing economies that rely on exports or that are trying to curb inflation themselves.

Mr Xi, on only his second overseas trip since the pandemic began, was addressing the summit a day after meeting US President Joe Biden.

The talks with Mr Biden were strikingly friendly,

with the two leaders both indicating they would like to ease tensions that have soared in recent months.

The White House said that Mr Xi and Mr Biden

agreed against any use of nuclear weapons in Ukraine,

as the United States seeks to encourage distance between Beijing and its nominal ally in Moscow.

In his remarks to the G-20, Mr Xi offered possible veiled criticism of Russia, which has attacked Ukraine’s energy infrastructure and, until a United Nations-brokered deal, had been blocking vital exports of Ukrainian wheat.

“We must firmly oppose politicisation, instrumentalisation and weaponisation of food and energy problems,” Mr Xi said.

He also repeated his familiar opposition to Western sanctions and warned against aggravating differences among countries.

“Drawing ideological lines and stirring up opposition among political blocs and factions will only divide the world and obstruct the advancement of humankind,” he said. AFP