China’s Economic Data Becomes Less Transparent in Recent Months, According to Reuters

By Andrea Shalal and David Ljunggren

The United States recently expressed concern over China’s decreasing transparency in reporting fundamental economic data and its actions against firms that provide such information, labeling these moves as irresponsible.

Jake Sullivan, the White House national security adviser, indicated that the U.S. has observed a decline in openness regarding China’s youth unemployment figures and other critical data, while also noting that China has restricted other companies from sharing information about its economic conditions.

Sullivan stated, “These are not, in our view, responsible steps. For global confidence, predictability, and the capacity of nations to make informed economic decisions, it is crucial for China to uphold a degree of transparency in the release of its data.”

His remarks came shortly after the announcement that Commerce Secretary Gina Raimondo would visit Beijing, making her the third cabinet member from President Joe Biden’s administration to travel to China in recent months. Sullivan emphasized that this move reflects Washington’s commitment to maintaining open lines of communication with Beijing.

In addition, Sullivan criticized China’s so-called coercive lending practices linked to its Belt and Road initiative. He mentioned that President Biden plans to advocate for enhancing the lending capabilities of the World Bank and the International Monetary Fund, positioning them as a credible alternative at the upcoming Group of 20 summit in India.

Biden’s request for additional budget funds from Congress for these institutions could leverage nearly $50 billion in lending specifically for middle-income and poorer nations from the U.S. alone, with potential global lending reaching up to $200 billion, Sullivan noted.

He clarified that the U.S. doesn’t view these multilateral institutions as exclusively Western entities but believes they can present a “positive, affirmative alternative” to the more opaque and coercive means provided by the Belt and Road Initiative.

Acknowledging China’s significant stake in both the World Bank and IMF, Sullivan maintained that this does not hinder their efforts to assist low and middle-income countries.

“It’s about promoting an affirmative vision of high standards and transparent, sustainable financing,” he stated.

Sullivan also mentioned that Raimondo would convey that the U.S. is not looking to sever ties with China, but rather focuses on protecting national security and ensuring resilient supply chains in conjunction with allies while continuing their economic and trade relationship.