– Oh listen, friends, for the other shoe behind this story to drop – it’s going to be a big one.
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BEIJING — Chinese Premier Wen Jiabao expressed concern over the outlook for the U.S. government debt China holds, urging Washington to take effective policies to restore the American economy to health.
Speaking at his annual news conference — a rare opportunity for reporters to ask the premier questions directly — Mr. Wen voiced confidence in the Chinese government’s ability to keep its own economy growing, saying it is willing to do what it takes to ensure China meets its traditional growth target of around 8% this year.
He said China’s existing four-trillion yuan investment program addresses “both short-term and long-term needs, and that market expectations last week of another stimulus package were based on “rumors and misunderstandings.”
However, China can do more if that becomes necessary, he said. “We have reserved adequate ammunition. We can at any time introduce new stimulus policies,” he said.
But he said the U.S. remains the world’s largest economy, and said that China is closely watching the effects of policies taken by U.S. President Barack Obama.
“We have lent a huge amount of money to the U.S., so of course we are concerned about the safety of our assets. I do in fact have some worries,” Mr. Wen said in response to a question. He called on the U.S. to “maintain its credibility, honor its commitments and guarantee the safety of Chinese assets.”
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