The Chongyang Institute for Financial Studies at Renmin University of China hosted a seminar in Beijing on Monday to release a report that examines the United States' sovereign credit and debt dilemma.

Zheng Xinye, vice-president of RUC, pointed out that the potential risks posed by the US' national debt could threaten the global economy. He emphasized that countries should work together to find solutions that prevent a single nation's debt issue from becoming a global systemic crisis.

Wang Wen, dean of the institute, explained that reciprocal tariffs, unilateralism, policy flip-flops, and the "America First" agenda have all undermined the US' credit system, threatened to unravel the post-World War II international economic order, and prompted a reassessment of the rationale behind the dollar-centered international financial system.

John Ross, former director of economic and business policy for the Mayor of London and a senior researcher at the Chongyang Institute, said that the US administration made "technical retreats" after the tariffs it announced on April 2 triggered turmoil by taking its financial markets to the brink of instability. Going forward, the intensity of US pressure on China will likely depend on the resilience of its financial markets.

Other researchers at the seminar discussed the rising US national debt, US sovereign credit rating downgrades, and a new form of the "Triffin Dilemma", in which soaring interest payments pose a threat to US creditworthiness.

Despite highlighting the challenges facing the US, the report also proposes measures to mitigate future default risks. These include enhancing economic resilience, diversifying trade partnerships, and strengthening competitiveness in high-tech industries.