Thread: Chinese express confidence in U.S. T-bills

Aug 19, 2011

Chinese express confidence in U.S. T-bills

By Richard Wolf, USA TODAY Updated 1h 41m ago

Chinese leaders meeting in Beijing with Vice President Biden have given a vote of confidence to U.S. Treasury bonds.

Despite the recent debacle over the $14.6 trillion debt ceiling that ended Aug. 2 in a complicated compromise between the White House and congressional Republicans, top Chinese officials told Biden Friday that they are keeping the faith.

Vice President Xi Jinping said China views the U.S. economy as "highly resilient, and has a strong capacity for self-repairment," according to press pool reports from Michael Memoli of the Los Angeles Times. "We believe that the U.S. economy will achieve even better development as it rises to challenges."

Premier Wen Jiabao said China has "full confidence that the United States will overcome" its difficulties. He went on:

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. It will preserve the safety, liquidity and value of U.S. treasuries. I'm sure that will give a boost to the investors' confidence in the U.S. economy.

Biden was no doubt relieved to hear those words from a nation that owns 8% of U.S. debt, the most of any foreign nation.

"We appreciate and welcome your concluding that the United States is such a safe haven, and we appreciate your investment in U.S. Treasuries," he said. "And very sincerely, I want to make clear that you have nothing to worry about."

"No one's ever made money betting against America," Biden told his hosts.

http://content.usatoday.com/communities ... -t-bills/1

How much money does China have?

Vice President Xi Jinping said China views the U.S. economy as "highly resilient, and has a strong capacity for self-repairment," according to press pool reports from Michael Memoli of the Los Angeles Times. "We believe that the U.S. economy will achieve even better development as it rises to challenges."