Foreign Policy Blogs

A rising power raises questions about US debt

money-graphics-2007_883498aToday Chinese Premier Wen Jiabao expressed his worry about the security of Chinese investments in American debt.  The US has taken hard hits from the global financial crisis and Beijing is naturally worried.  Wen said:

“To be honest, I am a little bit worried and I would like to … call on the United States to honour its word and remain a credible nation and ensure the safety of Chinese assets.”

The US responded with White House Press Secretary Robert Gibbs  announcing: “There’s no safer investment in the world than in the United States.”

What will be interesting is to see how much and in which ways Beijing uses its influence over the $696 billion of US debt that it holds.  Read more here.

 

Author

Christopher Herbert

Christopher Herbert is an analyst of foreign affairs with specific expertise in US foreign policy, the Middle East and Asia. He is Director of Research for the Denver Research Group, has written for the Washington Post’s PostGlobal and Global Power Barometer and has served on projects for the United States Pacific Command and the Defense Advanced Research Projects Agency. He has degrees from Yale University and Harvard University in Middle Eastern history and politics and speaks English, French, Arabic and Italian.

Area of Focus
US Foreign Policy; Middle East; Asia.

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