The U.S. monetary policy should also carefully evaluate its negative spillover effects abroad.
On Thursday, Chinese Foreign Affairs Ministry spokesperson Wang Wenbin said the Silicon Valley Bank (SVB) crisis has triggered turmoil in global financial markets.
He urged the United States to enhance transparency, adopt a responsible macroeconomic policy, and avoid serious negative spillover effects caused by radical policy adjustments.
Wang made the remarks at a regular press briefing in response to a query about Silicon Valley Bank's collapse, adding that China is paying close attention to relevant developments.
In today's world, the global financial system is highly interconnected, Wang noted, adding that the problems of U.S. banks are by no means exclusive to the United States, and the SVB crisis has triggered turmoil in global financial markets.
China hopes the U.S. side will enhance transparency, strengthen communication with the international community, and make clear a series of issues of general concern to the international community, such as how big the risks are, how to deal with them in the future, and how to minimize spillover effects.
ANALYSIS: If the intention was to encourage people to adopt CBDC, then bank runs, leading to systemic financial crisis would leave “depositors” clamouring for the “safe haven” of central bank money, wouldn’t it? @_InThisTogether https://t.co/MOKWkTfH79— Geopolitics & Empire (@Geopolitics_Emp) March 18, 2023
This is the responsibility of the U.S. side and the expectation of the international community, Wang said, noting that the U.S. dollar is an international currency, and the U.S. monetary policy should not only anchor the domestic economic regulation and control targets, but also carefully evaluate its negative spillover effects.
"We urge the U.S. side to adopt a responsible macroeconomic policy, effectively stabilize market expectations and investor confidence, avoid serious negative spillover effects caused by radical policy adjustments and repeating the mistakes of the 2008 financial crisis," said the Chinese spokesperson.
"We also urge the financial regulatory authorities of relevant countries to take concrete measures to protect the capital safety of all customers, including depositors of all countries," Wang noted, adding that China is willing to work with other economies to strengthen macroeconomic policy coordination and jointly safeguard international economic and financial stability.