Latest  News

US reaches debt agreement
US Senate leaders Wednesday noon announced an 11th-hour bipartisan deal to reopen the government and avert a historic lapse in the government's borrowing ability and a potentially damaging debt default before a Thursday deadline.

China urges US to prevent debt default
China on Monday urged the United States to take concrete measures before October 17 to avoid defaulting on its government bonds and ensure the safety of Chinese investments in the United States.

China yuan strengthens to new high against USD
The Chinese currency Renminbi, or yuan, marched to a new high against the US dollar on Tuesday, as the dollar weakened amid concerns over the US government shutdown and the upcoming debt ceiling debate.

Deadline looms as US Congress split on default
As the US government moved into the second week of a shutdown on Monday with no end in sight, a deadlocked US Congress also confronted an October 17 deadline to increase the nation's borrowing power or risk default.

Influences to China

Debt: China biggest foreign holder of US government debt
Along with millions of Americans, the US government closure could also hit China. According to the latest US Treasury data, China remains America’s biggest foreign creditor.

Tourism: Chinese tourists affected by US federal government shutdown
Four tourist groups from China's mainland organized by his agency are currently travelling around the United States. They are suffering different kinds of impact of the federal government shutdown, which led to the close of 401 national parks, Smithsonian's 19 museums and galleries and the National Zoo.

Although there's no figure yet how many Chinese tourists are affected by the shutdown, some of them are expressing their sadness on the Internet and through mass communication tools.

China's reaction:
"The US is the world's biggest economy and a major country issuing reserve currency. Safeguarding the debt is of vital importance to the economy of the US and the world," China's Vice Minister of Finance Zhu Guangyao told a press briefing held by the Chinese Foreign Ministry.

"This is the United States' responsibility," he said, adding that China hopes the US will address the challenges facing its economy, solve the government disputes over the debt ceiling and keep the recovery process in the US, and the world, going.

Comments

Feud in Washington risks US credit
Americans are supposed to take the comment on "de-Americanization" as an alarm bell. They must note that the US has gradually been falling out of its position as a "superpower" by being opportunistic and greedy. An increasing number of countries in the world have shown discontent and even boredom toward it.

Caixin.com:
China Concepts Stock have just begun to make roads into the US market, however with no end in sight, the US government shutdown will probably delay the progress of Chinese enterprises.

Yicai.com:
In the past, US debt was regarded as risk-free investment, but now the shutdown threatens everything from pensions to China’s export-led growth. US Treasury rates have always been the lowest in the world and have enabled their economic recovery at a low cost. However, if the US defaults, then interest rates will increase, the global shares market will plunge and anxious consumers will decrease spending. This will ultimately encumber economic development.

Yu Ping, Vice Chairman of the China Council for the Promotion of International Trade (CCPIT):
US economy offers great bearing on China and the global economy. "Chinese business community and their counterparts all hope that US can maintain a recovery momentum and contribute to the recovery of the world economy".

Yu Fenghui, financial commentator :
What the Chinese government can do now is to urge the US government and congress to realize the severity of defaulting on debt and to agree to raise its debt ceiling. Once a default occurs, the debtor can pay the minimum interest. However, the option of paying off the old debt with a new one will be unavailable if Congress fails to reach an agreement. This serves as a reminder to China that we should not put all our bond investment into one basket.

Background

Related  News

US should adapt to new growth order
US House Speaker says no 'clean' bill on raising debt limit
As shutdown drags on, gold edges up
US debt ceiling fears knock dollar, stocks
US House votes to approve back pay for furloughed govt workers
Wall Street rallies despite ongoing gov't shutdown
US House Speaker says US needs to address spending problem

Latest  News

国债 guózhài national debt; government bond; public debt

Example:

中方要求美国在10月17日前采取切实措施，及时解决国债上限争执。 （Source: 《环球时报》）

China urged the United States to take concrete measures before October 17 to resolve disputes over the debt ceiling.

Web editor: yangruoyu@globaltimes.com.cn