"Premier Wen Jiabao said on Friday he was "a little worried" about the safety of Chinese assets in the United States, and urged the US government to ensure the security of those assets Wen noted that Beijing was the US' biggest foreign creditor and asked Washington to ensure that its response to the global slowdown did not damage the value of Chinese holdings.
"We've lent a huge amount of capital to the United States, and of course we're concerned about the security of our assets. And to speak truthfully, I am a little bit worried," said Wen at a press conference after the close of the annual parliament 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."
China has invested its huge foreign exchange reserves in low-risk but low-yield assets such as US government bonds.
"China is indeed the largest creditor of the United States, which is the world's biggest economy. We are extremely interested in developments in the US economy," Wen said.
He said he hoped the measures taken by the Barack Obama administration to counter the global financial crisis would be effective.
Wen reiterated China's principle of guaranteeing the "safety, liquidity and good value" of its foreign exchange reserves and diversifying its investment."
When one looks at the words of the Chinese Government officials one get reassured that these erstwhile Communists have a better grasp of the world economy than the Harvard minions in the White House. Seeing the Wen Press conference one is reminded of a stern and reprimanding father lecturing to an overspending and petulant child. The Chinese leaders look like the adults and the White House like the geek version of Animal House.
The G20 meeting should be quite interesting. The US entering postion is, as we have stated for two months now, the antithesis of the EU position and now China is positioned as the only sane member worrying about how it will bail out its spendthrift children. This is a real problem for the US. It has been lectured properly on economics by Communists, finacially successful Communists at that.
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