China urges US politicians to raise debt ceiling

China urges American politicians to put their partisanship aside and strike a deal to avoid an unprecedented US debt default that could put Chinese investment in jeopardy.

The US must “shoulder its responsibility” as the holder of the main reserve currency and “take concrete measures before Oct. 17 to avoid a default,” Deputy Finance Minister Zhu Guangyao told reporters in Beijing on Tuesday. 

"In the long run, the United States must address the fiscal stalemate, must raise the cap of the debt limit soon as to keep the promise of no default of its Treasury bonds and keep the sound momentum of the US economy and avoid dragging down the world economy," he said. 

China is the United States’ largest creditor abroad with at least $1.3 trillion in holdings. 

The US Treasury taps out its reserves Wednesday midnight and there is no deal yet in Washington to raise the nation’s the $16.7 trillion debt limit. A US default would lower the value of US bonds, including those held by Beijing. 

Treasuries have long been viewed as a safe bet for countries trying to reduce risk for their investments, and the mere suggestion that the US could default on its debt is rattling investors worldwide. 

In a Sunday English-language commentary, China state news agency Xinhua caused a stir it called for "a de-Americanised world." 

"Days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing," it said. 

President Barack Obama, credit agencies and economic experts have warned that failure to address the US’ debt and budget crisis will deal a damaging blow to the US and global economy. 

On Tuesday, Fitch Ratings put the US government on notice that it may downgrade the nation's AAA credit rating. 

Besides the issue of debt ceiling, US lawmakers have yet to pass a budget to reopen the government that has remained partially shut down since October 1. 

(PRESSTV HJ/HJ)