China Worried About $1 Trillion U.S. Owes

March 14. 2009

"Video: US assures China over bond investments"

The Chinese government has expressed concern at whether the U.S. government will be able to repay $1 trillion in money they owe them.

President Obama’s press secretary has publicly assured him America is a safe investment. I think the concern comes from watching the turmoil in corporate America that has created fluctuations in the economy.

Wen Voices Concern Over China's U.S. Treasurys

BEIJING -- Premier Wen Jiabao voiced confidence in China's economy, saying his government's finances give it room to spend even more to support growth if needed, but expressed concern about the outlook for the U.S. and the safety of its Treasury bonds.

The forceful comments from Mr. Wen's annual press conference -- a rare opportunity for domestic and foreign reporters to ask a top Chinese official questions directly -- helped depress the U.S. dollar and prices of U.S. Treasurys in Asian trading Friday.

http://online.wsj.com