Jade
SENIOR MEMBER
- Joined
- Mar 5, 2010
- Messages
- 5,622
- Reaction score
- -1
- Country
- Location
Chinese leaders gave a vote of confidence Friday to the US economy during meetings with visiting US Vice President Joe Biden. Biden shared Washington's commitment to honor its public debt.
Biden is the first senior US official to visit China since an unprecedented downgrade of the US' credit rating earlier this month that has triggered worldwide fears about the security of dollar assets. Chinese media have taken a particularly strong tack against the haggling in the US Congress that almost failed to reach a compromise deal in time.
"You have clearly told the Chinese people that the United States is committed to preserving the integrity of its public debt, including its safety, liquidity and inflation-resistance, which will undoubtedly enhance confidence among investors," Premier Wen Jiabao said while meeting Biden.
Wen expressed his full confidence that the US economy would overcome its difficulties and return to prosperity, adding that "the prosperity and stability of the United States are important for the whole world."
China remains the largest foreign holder of US debt and held about $1.16 trillion in US Treasury securities at the end of June.
Biden said the US would ensure the safety of its debt not only to satisfy China, but also for US citizens, who own 85 percent of their country's debt.
Speaking earlier in the day at a US-China business dialogue, Chinese Vice President Xi Jinping said, "As the US economy is resilient and can recover, we believe that the US will make progress in handling the challenges," Biden and entrepreneurs from both countries were in attendance at the forum.
Chinese President Hu Jintao urged the two nations to improve coordination of their macroeconomic polices, and pursue economic growth and stability, when meeting with Biden later Friday.
Hu also said the US and China should jointly boost market confidence and revive the global economy.
He Weiwen, director of the American Economic Association of China, told the Global Times Friday that "the direct commitment from a senior official is what a responsible country should do when confronted with wavering global confidence."
Tian Yun, an expert at the China Macro Economics Institute, told the Global Times on Friday that "China has few alternatives for its foreign exchange reserves within its portfolio."
"Purchasing sovereign debt is a relatively safe choice. China lacks the ability, experience and expertise to make direct investments in overseas capital markets," Tian said.
Also at the China-US Business Dialogue, China responded to concerns that its domestic economy may be headed for a hard landing.
China's economy would not see a hard landing and remain at a relatively fast level of growth, Xi said, by focusing on long-term proactive fiscal policy and prudent monetary policy.
Xi also announced that China may "import commodities worth more than $8 trillion in the next five years," saying "total retail sales of consumer goods are expect to exceed 31 trillion yuan ($5.17 trillion) by 2015."
"The figure suggests that as the Chinese economy grows, it will keep on offering an expanding market for the world economy while playing a stabilizing role for global markets," He Weiwen commented.
The past decade has seen a rapid increase in bilateral Sino-US trade. Chinese foreign direct investment in the US is booming, having reached $5.3 billion in 2010, according to the American Chamber of Commerce in China.
The past decade also witnessed China importing mainly raw materials, semi-finished goods and machineries from the world's largest economy, He said, adding that "the machinery imported is usually not the most technologically advanced, reflecting US lingering strategic mistrust over China," He said.
Xi urged the US to remove trade and investment barriers and to relax limits on high-tech exports to China. Xi also asked the country to create a fair investment environment for Chinese businesses.
China, in return, will give all businesses equal treatment when recognizing indigenous innovation and granting government contracts, Xi said.
China confident in US economy rally
Biden is the first senior US official to visit China since an unprecedented downgrade of the US' credit rating earlier this month that has triggered worldwide fears about the security of dollar assets. Chinese media have taken a particularly strong tack against the haggling in the US Congress that almost failed to reach a compromise deal in time.
"You have clearly told the Chinese people that the United States is committed to preserving the integrity of its public debt, including its safety, liquidity and inflation-resistance, which will undoubtedly enhance confidence among investors," Premier Wen Jiabao said while meeting Biden.
Wen expressed his full confidence that the US economy would overcome its difficulties and return to prosperity, adding that "the prosperity and stability of the United States are important for the whole world."
China remains the largest foreign holder of US debt and held about $1.16 trillion in US Treasury securities at the end of June.
Biden said the US would ensure the safety of its debt not only to satisfy China, but also for US citizens, who own 85 percent of their country's debt.
Speaking earlier in the day at a US-China business dialogue, Chinese Vice President Xi Jinping said, "As the US economy is resilient and can recover, we believe that the US will make progress in handling the challenges," Biden and entrepreneurs from both countries were in attendance at the forum.
Chinese President Hu Jintao urged the two nations to improve coordination of their macroeconomic polices, and pursue economic growth and stability, when meeting with Biden later Friday.
Hu also said the US and China should jointly boost market confidence and revive the global economy.
He Weiwen, director of the American Economic Association of China, told the Global Times Friday that "the direct commitment from a senior official is what a responsible country should do when confronted with wavering global confidence."
Tian Yun, an expert at the China Macro Economics Institute, told the Global Times on Friday that "China has few alternatives for its foreign exchange reserves within its portfolio."
"Purchasing sovereign debt is a relatively safe choice. China lacks the ability, experience and expertise to make direct investments in overseas capital markets," Tian said.
Also at the China-US Business Dialogue, China responded to concerns that its domestic economy may be headed for a hard landing.
China's economy would not see a hard landing and remain at a relatively fast level of growth, Xi said, by focusing on long-term proactive fiscal policy and prudent monetary policy.
Xi also announced that China may "import commodities worth more than $8 trillion in the next five years," saying "total retail sales of consumer goods are expect to exceed 31 trillion yuan ($5.17 trillion) by 2015."
"The figure suggests that as the Chinese economy grows, it will keep on offering an expanding market for the world economy while playing a stabilizing role for global markets," He Weiwen commented.
The past decade has seen a rapid increase in bilateral Sino-US trade. Chinese foreign direct investment in the US is booming, having reached $5.3 billion in 2010, according to the American Chamber of Commerce in China.
The past decade also witnessed China importing mainly raw materials, semi-finished goods and machineries from the world's largest economy, He said, adding that "the machinery imported is usually not the most technologically advanced, reflecting US lingering strategic mistrust over China," He said.
Xi urged the US to remove trade and investment barriers and to relax limits on high-tech exports to China. Xi also asked the country to create a fair investment environment for Chinese businesses.
China, in return, will give all businesses equal treatment when recognizing indigenous innovation and granting government contracts, Xi said.
China confident in US economy rally
