China "worried" about US Treasury holdings

[dkf]

By JOE McDONALD

(AP) Chinese Premier Wen Jiabao gestures during a news conference after the closing ceremony of the...

BEIJING (AP) - China's premier expressed concern Friday about its massive holdings of Treasuries and other U.S. debt, appealing to Washington to safeguard their value, and said Beijing is ready to expand its stimulus if the economy worsens.

Premier Wen Jiabao noted that Beijing is the biggest foreign creditor to the United States and called on Washington to see that its response to the global slowdown does not damage the value of Chinese holdings.

"We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference following the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."

Wen's comments foreshadowed possible appeals to President Barack Obama, who will meet with Chinese President Hu Jintao at a London summit of leaders of the G-20 group of major economies on April 2 to discuss the global financial crisis.

Analysts estimate that nearly half of China's $2 trillion in currency reserves are in U.S. Treasuries and notes issued by other government-affiliated agencies.

Washington is counting on China to continue buying Treasuries to fund its $787 billion stimulus package. Last month, visiting Secretary of State Hillary Rodham Clinton sought to reassure Beijing that government debt would remain a reliable investment.

http://apnews.myway.com/article/20090313/D96T37FO0.html

[Deja Q]

1. If America started making more goods to sell, would that make our treasuries worth something?

[dkf]

3. Not borrowing so much would help too.

[no_hypocrisy]

2. Take a ticket and get at the back of the line . . . .

[madrchsod]

4. do something about your currency china

then come back to the table

[David__77]

5. It's not China's job to subsidize the US.

Why should they? They're doing just fine.

[madrchsod]

6. not really

they have millions out of work...no one is buying their stuff.