United States Deputy Treasury Secretary, Wally Adeyemo has come forward to express his concern about China's economy which is seen to be more likely to influence the Asian region than the United States on Monday.
According to Adeyemo, Beijing has the resources to deal with its economy in the short term, but must face long-term structural economic issues such as demographics and high debt.
"This matter will be more difficult for them to deal with as time goes by," he said in an interview on CNN.
Concerns about an economic slowdown have weighed on China, whose leaders skipped the G20 Group meeting last weekend.
On Sunday, Biden said China's growth was slowing due to a weak global economy as well as Chinese policies, although he did not mention specifics. Biden, who ended his trip to Asia to attend the G20 Group meeting and a visit to Vietnam to strengthen ties between the countries highlighted China's issues related to real estate and high youth unemployment.
Adeyemo, in the interview, said China's economy was facing "big obstacles," adding: "China's economic slowdown will have an impact, but more on their neighbors."
When asked about the potential for China to sell its holdings in US bonds, Adeyemo said he was more worried about what the slow economic development in China would do to their neighbors and Europe. Adeyemo urged China to open up its economy to the private sector, as this could improve its economy by creating competition.
