In response to a question regarding the failure of Silicon Valley Bank (SVB) and its possible international repercussions. Foreign Ministry Spokesman Wang Wenbin placed the responsibility for resolving the crisis on the shoulders of the US Government.
“We are closely following the developments,” Wang Wenbin said.. “Due to the deep interconnectedness of worldwide markets within the global financial system, problems with US banks by no means just impact the US itself. The SVB’s collapse has sent shock waves throughout the global financial market. We hope the US will increase transparency and enhance communication with the rest of the world and provide clarity on the exact size of the risk, steps to address it, ways to minimize its spillover as well as other widespread concerns of the global community. This is a responsibility and what is expected of the US.
“The US dollar is an international currency. Given this, the US should not simply anchor its monetary policy to domestic economic regulation goals. Instead, it needs to assess with caution any potential ensuing negative spillover. We urge the US to take responsible macroeconomic policy, take credible steps to stabilize market expectations and investor confidence and avoid radical policy shifts that may cause serious spillover effects and repeat the history of the 2008 financial crisis. We also call on the financial regulators of countries concerned to take concrete steps to keep money safe for all clients, including foreign depositors.”
Wang then added that “China stands ready to work with other economies to enhance macroeconomic policy coordination and jointly uphold global economic and financial stability.”
