Chinese President Xi Jinping on Tuesday asked the wealthy nations of the Group of Twenty to contain the fallout from an interest rate hike, as the US Federal Reserve moves aggressively to fight inflation.
“We must contain global inflation and resolve systemic risks in the economy and finance,” Xi said at a summit of major economies in Bali.
He said, “Advanced economies should limit the negative spillover effects of monetary policy adjustments and stabilize debt at a sustainable level.”
The Federal Reserve raised interest rates to their highest level since before the 2008 financial crisis as it seeks to shrink the money supply in an attempt to combat inflation.
The US monetary stance has pushed the dollar to levels not seen in two decades, causing distress to developing economies that depend on exports or are trying to curb inflation themselves.
Xi, on only his second foreign trip since the epidemic, was addressing the summit a day after he met US President Joe Biden.
Talks with Biden have been remarkably cordial, with the two leaders indicating their desire to ease tensions that have risen in recent months.
The White House said Xi and Biden agreed not to use any nuclear weapons in Ukraine, as the United States seeks to encourage distance between Beijing and its nominal ally in Moscow.
In his remarks to the G20, Xi offered a possible veiled criticism of Russia, which has attacked Ukraine’s energy infrastructure and, until a UN-brokered deal, has been blocking vital exports of Ukrainian wheat.
“We must firmly oppose the politicization, exploitation and weaponization of food and energy problems,” Xi said.
He also reiterated his familiar opposition to Western sanctions and warned of exacerbating differences between countries.
“Drawing ideological lines and stirring up opposition between political blocs and factions will only divide the world and impede the progress of humanity,” he said.