Tags: China | US | Question | Debt | Holdings

China: Don't Question Beijing's US Debt Holdings

Thursday, 10 Jun 2010 10:09 AM

China urged the United States on Thursday not to be suspicious about its U.S. Treasury holdings, after the Senate voted to require regular reports on security risks posed by debt held by China and other nations.

The Senate move came as lawmakers grow nervous about the $13 trillion U.S. debt in the aftermath of a European debt crisis, and as record U.S. budget deficits and the debt become major issues ahead of the November congressional elections.

China is the world's largest holder of U.S. Treasuries, with $895.2 billion, and added to its stockpile in March for the first time in seven months.

Chinese Foreign Ministry spokesman Qin Gang said fears about his country's U.S. debt holdings were unfounded.

"Economic and trade cooperation between China and the United States is win-win and mutually beneficial," he told a regular news briefing in Beijing.

"We hope relevant parties — some people in the United States — are not so suspicious," Qin added. "In selling bonds, you have to do it following market principles. Don't politicize everything."

The Foreign Ministry has no say in setting the country's policy on holding foreign currencies or debt.

Chinese officials, including Premier Wen Jiabao, last year prodded the Obama administration to avoid pursuing fiscal policies that could erode the value of China's holdings of U.S. debt.

Sino-U.S. ties have been strained of late, especially over the value of the Chinese currency, which many U.S. politicians believe to be undervalued.

U.S. Senator Charles Schumer said on Wednesday that he and other colleagues would push for a vote in the next two weeks on legislation that would allow the Commerce Department to use anti-dumping and countervailing duty laws against China or any other country with a fundamentally misaligned exchange rate.

© 2017 Thomson/Reuters. All rights reserved.

   
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China urged the United States on Thursday not to be suspicious about its U.S. Treasury holdings, after the Senate voted to require regular reports on security risks posed by debt held by China and other nations. The Senate move came as lawmakers grow nervous about the $13...
China,US,Question,Debt,Holdings
288
2010-09-10
Thursday, 10 Jun 2010 10:09 AM
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