Officials from the Chinese government have issued a statement urging the global economic leader to protect the interest of investors in the country’s debt after the outlook on its credit rating was downgraded, according to Reuters. On Tuesday, the foreign ministry of China called on U.S. leaders to implement “responsible policies and measures to safeguard investors’ interests.” The plea comes on the heels of Standard & Poor’s downgrade of its outlook for its credit rating on U.S. debt from stable to negative.
Timothy Geithner, the Secretary of the U.S. Treasury Department, said on Tuesday that there was “no risk” of a downgrade to the country’s top AAA credit rating. Geithner insisted that “prospects for improving our long-term fiscal position” are looking “better,” citing a growing consensus among politicians in Washington that the country must act to contain its budget deficit. The Treasury Secretary also insisted that confidence in U.S. debt both at home and abroad remains strong, with Chinese reserves rising by $200 billion in the first quarter to $3.05 trillion, of which roughly two-thirds are estimated to be invested in dollars.
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