CCTV.com - CNTV English - CCTV News

China concerned over US's economic management

08-08-2011 20:40 BJT

Watch Video

Play Video

The Chinese market is not the only stock market suffering a hit. Asian stocks nose-dived on Monday, as the first-ever downgrade of the US credit rating jolted the global financial system. But as the largest foreign holder of US bonds, China is voicing particular concern over the US's economic management.

It's been two days since Standard and Poor's downgraded the US to a double A plus. rating.

But the aftershock is far from over.

As share prices tumble, fears of another global slowdown are on the rise.

One investor said "I think it's a bit scary at the moment. The whole world has got too much debt, so we need to cut down the debt. Governments have to take a look at that I think, and companies as well."

Too much debt. It's a problem that's reared its ugly head time and time again, only to be fixed in the short term by further borrowing.

Since the U.S. got its triple A rating in 1917, its bulging national debt has never been fully addressed.

But now it's crunch time.

The clock is ticking. The world's largest economy has its back against the wall, and this time, a long term solution must be found.

In a recent commentary, China's Xinhua news agency urged the US to cure its addiction to debt.

It says China has every right to demand Washington take a long term view, to fully address its problems and safeguard Chinese dollar assets.

It called on the US government to re-establish old fashion values of living within its means.

China, the largest creditor of the world's sole superpower, has every right to demand the United States address its structural debt problems and ensure the safety of China's dollar assets.

The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of situations of its own making are finally over.

To cure its addiction to debt, the United States has to re-establish the common sense principle that one should live within one's means.

With holdings of 1.2 trillion dollar-dominated assets, the Chinese government seldom voice dissatisfaction with US economic policy, fearing it would make matters worse.

The commentary carried by Xinhua News Agency was Beijing's first official response to last week's landmark decision by S&P.

What effect the comments will have, or what pressure will be brought to bear on Washington's divided Capitol Hill lawmakers... only time will tell.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program