China’s ratings agency Dagong has downgraded its assessment of US government debt, saying the country is “on the wrong track that departs from logic”, days after officials dismissed reports of waning Chinese demand for Treasuries as “fake news”.
In a statement, Dagong said the US’s “political ecology” was showing “deficiencies” that make it hard to keep the economy on track. It added:
Under the political ecology which is built by the factional rivalries, factional interests are prioritized, and it is hard for the government to focus on the management of the national economy and social development.
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