Wednesday, October 23

House Foreign Affairs chair warns default could be reward for China

House Foreign Affairs Committee Chairman Michael McCaul says failing to lift the debt restrict and defaulting could be a present to one in every of America’s most outstanding international adversaries: China.

“Our adversaries look at this very closely. They look at when we’re divided too as a nation,” the Texas Republican mentioned Sunday on ABC’s “This Week.” “I think they would love nothing more, particularly China, to see us default our full faith and credit under the Constitution.”

Mr. McCaul’s evaluation comes because the White House and House Republicans have begun negotiations to lift the debt ceiling amid calls for for price range cuts from the GOP.

But it’s a race in opposition to the clock, because the U.S. might hit default as quickly as early June.

Army Gen. Mark Milley, chairman of the Joint Chiefs, testified to Congress final week that China “describes us in their open speeches as a declining power” and that defaulting “will only reinforce that thought and embolden China and increase risk to the United States.”

“I agree with the chairman of the Joint Chiefs,” Mr. McCaul mentioned, “that our adversaries are looking at this and we have to be very careful what we do. I’m optimistic we will get to a place where we can avoid that situation.”

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