China Developing Country Status: Mutual tension is increasing between the two largest economies of the world, America (US) and China (China). The US Parliament (US Senate) gave an economic blow to China today when it approved a new law. According to that law, the status of a developing country will be taken away from China.
This step of America will have a bad effect on China’s economy. He will no longer be able to get loans easily and at low interest from the World Bank and other financial institutions. Till now, due to the status of a developing country, China itself used to take easy and cheap loans, but used to trap poor countries by giving them loans on harsh terms.
- US President Joe Biden and Chinese President Xi Jinping.
He himself trapped poor countries by taking cheap loans
According to the BBC report, China trapped many Asian and African countries including Sri Lanka, Pakistan in debt trap. Apart from this, China has also banned BBC here. The American newspaper The New York Times reported that for the first time in the month of March this year, a bill was introduced in the House of Representatives (like the Lok Sabha in India), the lower house of the US Parliament. The special thing about that bill was that its purpose was only to rein in China. Now that bill has been approved by the US Parliament. During this, many American MPs said that China has taken undue advantage of the Developing Country States, so now it will not be given these states.
Dragon now the world’s second largest economy
Let us tell you that America is the world’s largest economy with 26.854 trillion dollars. At the same time, China is the second largest economy with $19.374 trillion. After China, Japan is at number three with $4.410 trillion and Germany at number four with $4.309 trillion.
