Joe Biden’s $1.9 trillion plan: What does it mean to the world?

On Thursday (January 14), incoming President Joe Biden revealed his administration’s US$1.9 trillion stimulus package that aims to combat the COVID-19 situation in the United States and to help improve the hard-hit US economy. But what does this mean to China and perhaps the world economy?

One would expect the Chinese economy to improve because of this plan because of the US’ high demand for Chinese products. However, the People’s Bank of China (PBOC) is not taking this plan to be advantageous. Mr. Chen Yulu, the deputy governor of the PBOC stated on Friday (January 15) that China and the PBOC should take caution when Biden’s plan comes into place. He explained in a recent media briefing, the dangers that Biden’s plan would bring to not only China’s economy but the world’s too.

Mr. Chen Yulu at a recent media briefing. Image Credits: The Wall Street Journal

He said, “One is the departure from the fundamentals of the real economy in the international financial market, with increasing volatility. The second is that, with loose global liquidity, the direction of cross-border flows is increasingly volatile. Third, the pandemic has had an unprecedented impact on the economy, and the debt risk of low-income countries will rise further, which may further affect the progress of the global economic recovery.”

According to the South China Morning Post, analysts are worried that the plan could introduce more inconstancy in money flow in China, because of speculative hot money going into yuan-denominated assets. China continues to strictly control fund flows to maintain a steady currency exchange rate, which keeps its exports competitively priced.

The Chinese economy grew in 2020, as opposed to the situation in most countries.

Even though the Chinese economy is already taking necessary precautions to fight against the negative impacts that Mr. Biden’s plan may bring, we would have to wait and see if the repercussions were as damaging as speculated or if it brings us advantages as well.

Do you want to publish on Apple News, Google News, and more? Join our writing community, improve your writing skills, and be read by hundreds of thousands around the world!

More from World – News Landed

+ Curfews sweep Europe to tackle rising COVID-19 cases
+ Brazil’s researchers claim that the Sinovac vaccine is only 50% effective

+ Bordeaux-ver the moon: French wine to return from the space station
+ Endangered Indian rhinoceros calf born in Poland zoo

Related Stories

NASA’s Perseverance rover is set to touchdown on the Martian surface this Thursday

This February has been a good month for Mars exploration. We recently heard the news about the Emirates Mars...

Scientists want Pablo Escobar’s hippos to be killed and here’s why

We all know Pablo Escobar was one of the notorious criminals of all time. The man who lived in...

Featured Stories

NASA’s Perseverance rover is set to touchdown on the Martian surface this Thursday

This February has been a good month for Mars exploration. We recently heard the news about the Emirates Mars...

Scientists want Pablo Escobar’s hippos to be killed and here’s why

We all know Pablo Escobar was one of the notorious criminals of all time. The man who lived in...

Taylor Swift announces the release of re-recorded album, ‘Fearless’; dropped a new version of ‘Love Story

On Thursday (January 11), Taylor Swift announced to the world that she would be dropping the re-recorded version of...

High altitude Arctic Lakes and their link to climate change

Most lakes around the world play a crucial role in affecting the greenhouse concentrations of the atmosphere. In extreme...

People unlikely to suffer from thrombocytopenia after receiving COVID-19 vaccine

The COVID-19 situation has brought the entire research communities all over the world to focus on developing vaccines. As...

Noise pollution has found its way to deep oceans – A research finds

When we think of pollution created by human activity, the things that come into our mind are atmospheric pollution...