United States Vice President Joe Biden assured Chinese Prime Minister Wen Jiabao that China should not be afraid when it comes to their investment on the American Treasuries.
Biden and Wen both agreed that they both have high confidence in how the US economy is progressing. The Chinese Prime Minister said that the US economy’s stability “is in the interest f the whole world.”
According to Biden, “We appreciate and welcome your concluding that the United States is such a safe haven because we appreciate your investment in U.S. Treasuries. I want to make clear that you have nothing to worry about in terms of their viability.”
The recent downgrade of Standard & Poor on August 5 on the economy of the United States has been one of the most popular topics in the discussions between the US Vice President and the Chinese Prime Minister. Xinhua New Agency said, “The U.S. government must realize it can no longer borrow its way out of messes of its own making.”
China is the largest single foreign creditor of the United states with an estimate of $1.17 trillion in holdings.
According to Biden, the United States will do all that they can in order to take care of the US Treasuries not just because China possesses about 8% of them but “because Americans own 85%”.
Wen said, “In spite of the difficulties facing the U.S. economy at present, we believe that the U.S. can weather the economic downturn and get its economy back on the track of healthy growth.”
Tags: United States Treasury security, high confidence, Wen Jiabao, recent downgrade, economic downturn, safe haven
