Legal Commentary

China "Worried" About US Debt

By Big Tent Democrat

I wonder what motivated the Chinese to say this:

The Chinese prime minister, Wen Jiabao, expressed unusually blunt concern on Friday about the safety of China’s $1 trillion investment in American government debt, the world’s largest such holding, and urged the Obama administration to provide assurances that the securities would maintain their value in the face of a global financial crisis. . . . Mr. Wen said he was “worried” about China’s holdings of United States Treasury bonds and other debt, and that China was watching economic developments in the United States closely. “President Obama and his new government have adopted a series of measures to deal with the financial crisis. We have expectations as to the effects of these measures,” Mr. Wen said. “We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.”

There obviously is a motivation for saying this - it is not in China's financial interest to cause concern for US debt. What are they after with this?

Speaking for me only

Full post as published by TalkLeft on March 13, 2009 (boomark / email).