Share

China 'need not fret' over dollar assets

Beijing - China should rest easy that its investments in the dollar remain safe, the newly arrived US ambassador in Beijing, Gary Locke, said on Sunday, adding that the world's two biggest economies could find common ground despite economic and political strains.

In his previous job as US commerce secretary, Locke often chided China over its trade policies, but in his first media appearance since taking up his new job in Beijing he gave a more benign message of potential cooperation.

"The United States and China have a profoundly important and complex diplomatic and economic relationship, one with challenges, to be sure, but which also holds great promise for expanded cooperation and collaboration," Locke told reporters.

Since Standard & Poor's cut its credit rating for long-term US debt in early August, Chinese state media have accused Washington of reckless fiscal policies that have created uncertainty about Beijing's big holdings of dollar assets.

Analysts estimate Beijing has put about two-thirds of its $3.2 trillion foreign exchange reserves, the world's largest, in dollars and is the United States' biggest foreign creditor.

Asked about Chinese disquiet about the US economy and creditworthiness, Locke said President Barack Obama and Congress has mapped out a "path ensuring fiscal integrity of the United States." He said US treasury bonds were still finding buyers despite the downgrade.

"It's a clear indication that investment in the United States is safe, secure and that the economy, while having its challenges, is still strong," he said.

"We have this opportunity as two great nations to provide the leadership for the entire world," Locke, a former governor of Washington state whose ancestors came from China, told reporters outside his new residence.

Even before arriving in Beijing, Locke made a splash on the Chinese Internet, when photos spread online of him lined up at a coffee shop at Seattle airport without the security guards and secretaries that many Chinese people expect officials take everywhere.

Asked about the pictures, and whether he would take to China's Internet to talk directly to users, Locke just said: "We look forward to using all forms of communications, including blogging and the electronic media."

Locke has pledged to press China to open its market to more US goods and services, move to a more flexible currency exchange rate and step up action against counterfeiting of American products.

In the first half of 2010, Sino-US relations were shaken by a series of disputes over Internet censorship, Tibet and US arms sales to Taiwan, the self-ruled island that Beijing deems an illegitimate breakaway.

Since then, both sides have sought to steady ties. But Chinese media have warned that a possible new sale of US arms to Taiwan, including fighter jets, would anger Beijing.

Last week, a commentary in a popular Chinese tabloid, the Global Times, argued that China should use its "financial weapon to slap Washington" over arms sales to Taiwan.

The debt issue and Taiwan are also likely to feature when US Vice President Joe Biden visits China for several days from Wednesday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.5%
Rand - Pound
24.02
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.6%
Platinum
904.37
+0.8%
Palladium
1,014.65
+1.3%
Gold
2,205.79
+0.5%
Silver
24.61
-0.1%
Brent Crude
86.09
-0.2%
Top 40
68,281
+0.9%
All Share
74,458
+0.7%
Resource 10
57,014
+2.4%
Industrial 25
103,960
+0.7%
Financial 15
16,486
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders