U.S. Treasury undersecretary for international affairs, David Malpass, said during a forum in Washington yesterday that China should no longer be “congratulated” for its economic policies, Reuters reports, accusing Beijing of “patently non-market behaviour”.
During the comment Malpass added that Western market-economies were growing more aware of the challenges China’s interventionist policies posed for them, but stronger responses were needed.
“One of the challenges for the world is that as China has grown and not moved toward market orientation, that means that the misallocation of capital actually increases,” Malpass said. “They’re choosing investments in non-market ways. That is suppressing world growth.”