Biden Assures China on its U.S. Investments
Vice President Biden met with President Hu Jintao and Premier Wen Jiabao today in Beijing, and sought to reassure the Chinese government and people that their investment in the American economy was secure, the Washington Post reports:
“U.S. Treasurys we’re going to take care of very closely, not merely because China owns 8 percent of them, but because the Americans own 85 percent of them,” Biden told Chinese Premier Wen Jiabao during a Friday afternoon meeting at Zhongnanhai, the main leadership compound in central Beijing.
“We appreciate and welcome your concluding that the United States is such a safe haven, and we appreciate your investment in U.S. Treasurys,” Biden said on the second day of his four-day visit here. “And very sincerely, I want to make clear that you have nothing to worry about.”
Wen thanked Biden for his assurances, which he said would go down well with the Chinese public. Many Chinese academics, economists and citizens voicing their views on the Internet have complained that the government holds too much U.S. debt, making China too dependent on the economic health of the United States and the strength of the dollar.
“You’ve sent a very clear message to the Chinese public, that the United States will keep its word and its obligations with regard to its government debt,” Wen said, according to an English transcript of his remarks in Chinese. “It will preserve the safety, liquidity and value of U.S. Treasurys. I’m sure that will give a boost to the investors’ confidence in the U.S. economy.”
From PBS Newshour: