Obama asks China to have confidence in US govt debthttps://indianexpress.com/article/news-archive/web/obama-asks-china-to-have-confidence-in-us-govt-debt/

Obama asks China to have confidence in US govt debt

President Barack Obama has said that China could have “absolute confidence” in the American economy...

President Barack Obama has said that China could have “absolute confidence” in the American economy,after Beijing pointedly questioned the safety of its huge haul of US government debt.

Obama took up comments by China’s Premier Wen Jiabao on Friday,which represented a rare assessment by Beijing on the health of the US economy and the prospects for China’s hundreds of billions of dollars in Treasury bonds.

“Not just the Chinese government,but every investor can have absolute confidence in the soundness of investments in the United States,” Obama said after meeting Brazilian President Luiz Inacio Lula da Silva at the White House.

“There is a reason why even in the midst of this economic crisis you have seen actual increases in investment flows here in the US.” “I think it is a recognition that the stability not only of our economic system but also our political system is extraordinary.” Obama said that his comments were applicable to both US Treasury instruments and investments in the US private and industrial sectors.

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Wen told reporters in Beijing on Friday that he was concerned about China’s huge stake in the US economy as it endures the worst crisis in generations.

“We have lent huge amounts of money to the United States. Of course we are concerned about the safety of our assets,” Wen said. “To be honest,I am a little bit worried and I would like to … call on the United States to honor its word and remain a credible nation and ensure the safety of Chinese assets.”

Wen’s comments caused a stir in global markets,and were the latest disturbance to the critical US-Chinese relationship early in Obama’s administration.

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