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No credit for top creditor
(China Daily)
Updated: 2010-03-05 07:51
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It matters little whether China is the top holder of US Treasury bonds, says an article in Guangzhou Daily. Excerpts:
According to the US Treasury Department, China reclaimed its position as top US creditor on Feb 26 from Japan, which had inched ahead in December last year with $11.5 billion.
China's economic rise is a mixed bag of exciting fanfare and varied interpretations. But most of the interpretations of China's "No 1 creditor" position are exaggerations. It's absurd to think that the bonds will help China to gain the upper hand over US.
Admittedly, any change may disturb the political and economic balances between China and US, given the sheer size of China's stake. But increasing or reducing the US treasury bonds that China holds is aimed primarily to guarantee profit or reduce loss. Hence, it is preposterous to link routine sways in the financial sphere with deliberate political motives.
(China Daily 03/05/2010 page10)
