A tentative deal between the White House and Republicans to raise the US debt ceiling could bring temporary relief to the global financial market but there is still the risk of collateral damage, Chinese observers warned on the weekend.
US President Joe Biden and House Speaker Kevin McCarthy reached an agreement in principle on Saturday on a deal that is believed to include a two-year debt limit increase and a cap on non-defence spending by the government.
The agreement still needs the approval of lawmakers of both parties before the Treasury is projected to run out of cash to pay its bills on June 5.
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