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(Reuters) - China should rest easy that its investments in the dollar remain
safe, the newly arrived U.S.
ambassador in Beijing, Gary Locke,
said on Sunday, adding that the
world's two biggest economies could
find common ground despite economic and political strains. In his previous job as U.S. commerce
secretary, Locke often chided China
over its trade policies, but in his first
media appearance since taking up his
new job in Beijing he gave a more
benign message of potential cooperation.
Since Standard & Poor's cut its credit
rating for long-term U.S. debt in early
August, Chinese state media have
accused Washington of reckless fiscal
policies that have created uncertainty
about Beijing's big holdings of dollar assets. Analysts estimate Beijing has put
about two-thirds of its $3.2 trillion
foreign exchange reserves, the
world's largest, in dollars and is the
United States' biggest foreign creditor.
Locke has pledged to press China to
open its market to more U.S. goods
and services, move to a more flexible currency exchange rate and step up action against counterfeiting of
American products. In the first half of 2010, Sino-U.S.
relations were shaken by a series of
disputes over Internet censorship,
Tibet and U.S. arms sales to Taiwan, the
self-ruled island that Beijing deems an
illegitimate breakaway. Since then, both sides have sought to
steady ties. But Chinese media have
warned that a possible new sale of U.S.
arms to Taiwan, including fighter jets,
would anger Beijing. Last week, a commentary in a popular
Chinese tabloid, the Global Times,
argued that China should use its
"financial weapon to slap
Washington" over arms sales to
Taiwan. The debt issue and Taiwan are also
likely to feature when U.S. Vice
President Joe Biden visits China for
several days from Wednesday.
safe, the newly arrived U.S.
ambassador in Beijing, Gary Locke,
said on Sunday, adding that the
world's two biggest economies could
find common ground despite economic and political strains. In his previous job as U.S. commerce
secretary, Locke often chided China
over its trade policies, but in his first
media appearance since taking up his
new job in Beijing he gave a more
benign message of potential cooperation.
Since Standard & Poor's cut its credit
rating for long-term U.S. debt in early
August, Chinese state media have
accused Washington of reckless fiscal
policies that have created uncertainty
about Beijing's big holdings of dollar assets. Analysts estimate Beijing has put
about two-thirds of its $3.2 trillion
foreign exchange reserves, the
world's largest, in dollars and is the
United States' biggest foreign creditor.
Locke has pledged to press China to
open its market to more U.S. goods
and services, move to a more flexible currency exchange rate and step up action against counterfeiting of
American products. In the first half of 2010, Sino-U.S.
relations were shaken by a series of
disputes over Internet censorship,
Tibet and U.S. arms sales to Taiwan, the
self-ruled island that Beijing deems an
illegitimate breakaway. Since then, both sides have sought to
steady ties. But Chinese media have
warned that a possible new sale of U.S.
arms to Taiwan, including fighter jets,
would anger Beijing. Last week, a commentary in a popular
Chinese tabloid, the Global Times,
argued that China should use its
"financial weapon to slap
Washington" over arms sales to
Taiwan. The debt issue and Taiwan are also
likely to feature when U.S. Vice
President Joe Biden visits China for
several days from Wednesday.
