Xinhua Commentary: America's go-to distraction: the "look over there" ploy

by Xinhua writer Wang Xuefei

BEIJING, April 25 (Xinhua) -- U.S. Treasury Secretary Scott Bessent's branding of China as the "most imbalanced economy" is a textbook case of U.S. politicians deflecting blame for America's self-inflicted economic woes.

Far from being "imbalanced," China's economy is in the midst of a dynamic transformation that Washington either simply cannot understand or chooses to ignore. By contrast, it is the United States -- stuck in protectionism and reliant on unsustainable, debt-propelled growth -- that poses the real threat to the stability of the global economy.

While its industrialization rise was initially built on manufacturing and exports, China has measuredly pivoted toward a consumption- and innovation-driven model since the 2010s. When confronted with these facts, Bessent's "most imbalanced economy" narrative completely falls apart.

In 2024, consumption contributed 44.5 percent of China's economic growth and services expanded to 56.7 percent of GDP. The digital sector reaped a profit of 2.7 trillion yuan (371 billion U.S. dollars), up by 3.5 percent year on year, underscoring China's steady transition toward a modern, consumption-led and tech-driven growth model.

While China has been modernizing its economic engine, Washington is stuck in a doom loop of its own making: drowning in a gross debt of over 36 trillion dollars, addicted to Wall Street's casino economics, and watching its factories turn into rust belt.

Bessent's claim that China's economy poses a threat to the rest of the world isn't just absurd -- it's straight out of Washington's tired playbook: sow division, stoke fear, and bully other nations into joining its desperate campaign to stifle China's development.

Over the past year, U.S. officials have relentlessly hyped the "Chinese overcapacity" scare in clean energy. But their true anxiety is obvious: China has raced past America in green tech innovation, and Washington can't stomach being outcompeted. Instead of stepping up its game, it's fallen back on the same tired ploys -- smears, market suppression and knee-jerk protectionism.

Take electric vehicles. Global demand is far from being saturated. According to International Energy Agency projections, global EV sales will triple to 45 million by 2030, far outstripping current production capacity. This isn't "overcapacity" -- it's China positioning itself to meet the world's accelerating demand for clean transportation.

China's clean energy dominance isn't about "dumping" -- it's about outperforming the competition. The country's leadership in EVs, solar and renewables stems from world-class innovation and hard-won efficiency advantages, not artificial support. While competitors cry foul, Chinese firms have simply built better products at competitive prices through real market competition.

Simply put, Washington fears not "structural imbalance" but "structural progress." China's ascent into high-end manufacturing directly challenges America's profit monopolies in advanced industries. This isn't about leveling the playing field; it's about protecting uncompetitive sectors from actual market competition.

Worse still, by demonizing China's growth, Washington is fueling division at a time when global cooperation is more imperative than ever.

Rather than building bridges, Washington has chosen to burn them, notably by slapping on tariffs, weaponizing the dollar and forcing economic decoupling. This dangerous zero-sum game risks shattering the global economic order at the very moment when global unity is needed to address shared challenges.

China's economic evolution -- from a manufacturing powerhouse to a more consumption- and innovation-driven economy -- creates immense opportunities for shared prosperity. Its clean energy breakthroughs and growing consumer market could power sustainable growth worldwide. Yet Washington's obsession with containment threatens to plunge the global economy into a gloomy era of stagnation and instability.

The real threat to global prosperity isn't China's growth but America's outdated zero-sum mentality. While China's development creates opportunities for all, Washington still sees the world through a Cold War lens, treating every economic advance as a danger to be suppressed rather than progress to be welcomed. ■