25 April, 2014 AsiaNews.it Twitter AsiaNews.it Facebook            

Help AsiaNews | About us | P.I.M.E. | | RssNewsletter





mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato
e-mail this to a friend printable version


» 08/08/2011 17:18
CHINA – UNITED STATES – ASIA
China sees its own downfall as US credit enters twilight
by Wang Zhicheng
The People’s Daily and Xinhua publish harsh commentaries about US politicians, their useless democracy, and US military adventurism. They are also a sign of fear that, as the US dollar goes, so will China with its US$ 1.16 trillion in US treasury bills. Beijing pleads for action.

Beijing (AsiaNews) – For the past few days, the People’s Daily and the Xinhua news agency have been full of commentaries about the downgrading of the US debt. Today was no different with two or three more pieces. However, none of these articles appears to represent the official line. So far, China’s rulers have been silent and overall media coverage in China has varied in tone and approach

Charges include attacks against American political leaders for showing “irresponsibility” and doubts about US democracy as well as insults over US “addiction to debt” and US militarism and adventurism in Iraq and Afghanistan. Yet, all the commentaries end pleading with the United States to honour its debt to “maintain the stable value of the dollar” and boost hope for growth in the world’s economy.

A commentary published today in the People’s Daily by Zhong Sheng (a pen name that means ‘Voice of China’) said that difficulties faced by the US and (EU) were due to multiparty democracy, which favours partisan interests over those of the nation.

“It must be understood that if the US, Europe and other advanced economies fail to shoulder their responsibility and continue their incessant messing around over selfish interests, this will seriously impede stable development of the global economy,” the paper said.

“People have deepening misgivings about the political decisiveness of the Western nations, and this has also seriously hurt global investors' confidence in world economic recovery, exacerbating market turmoil,” it added. Speaking about the United States, “What has been pushed to the edge of the precipice is not the global economy, but Washington politics,” it lamented.

Two days ago, when Standard & Poor’s lowered US credit rating to Aa+, Xinhua published a commentary full of scorn for the “US ‘addiction’ for debt”, saying that it was high “time for the US to tighten [its] belts” and increase savings.

Today, the same paper carried a commentary accusing the United States of spending too much on defence, with heavy bills for wars in Iraq and Afghanistan. In it, the US was told, “to reflect on its domineering thinking and deeds,” and “change its policies of interference abroad.”

In another commentary, the US was accused of pursuing a “weak dollar” to help its exports. “For the desperate policymakers, to boost export seems to be the last way to kick[start] the U.S. economy.”

Yet, many comments end the same way, pleading with the US to remember that they have a “responsibility as the issuer of reserve currency to maintain the stable value of the dollar”, i.e. what China wants.

As the world's biggest stockpile of foreign exchange reserves as well as the largest holder of US Treasuries, China has a lot to lose. An estimated 70 per cent of its reserves are in dollar assets, including US$ 1.16 trillion in US Treasuries. For Beijing, a weaker dollar means a diminishing nest egg.

What is more, the United States is the largest importer of Chinese-made goods worth US$ 364.9 billion. If exports decline, China’s already problem of overproduction will get worse with negative consequences for employment and social stability.

For this reason, an opinion piece signed by Li Xiangyang said, “the American people do not need to tighten their belts”. If they did, Chinese exports would suffer.

For analysts, such commentaries appear to be designed to calm Chinese public opinion, already rattled by fears of impoverishment (because of American policies) and praise China’s own decision-making system, belittle democracy and play on mainlanders’ anti-Taiwan sentiments.

However, many of the statements sound more like a plea. As one put it, before making “any move, please [. . .] don't forget” that “as the issuer of reserve currency” you must safeguard “the stable value of the dollar”.

e-mail this to a friend printable version

See also
08/08/2011 ASIA
Asia stock markets plummet amid fears of new global crisis
12/19/2008 ASIA - UNITED STATES
U.S. debt approaches insolvency; Chinese currency reserves at risk
by Maurizio d'Orlando
03/19/2008 ASIA
Economic crisis renews prospects for world currency
by Maurizio d’Orlando
11/10/2011 ASIA – ITALIA
Asian shares and currencies plunge because of Italian crisis
08/27/2008 CHINA
Credit crisis “Made in China”

Editor's choices
ITALY - ASIA
Easter, victory over death and impotence
by Bernardo Cervellera
SYRIA
I will miss you Fr Frans, you inspired us all, says Syrian Jesuit
by Tony Homsy*A young priest from the Society of Jesus remembers the life and work of Fr Frans van der Lugt, who was killed in Homs after he refused to abandon residents beleaguered by hunger and war. "He gave and continues to give everything for the Church, Syria, and peace. His story and qualities made him an exceptional missionary and witness to the Gospel." Reprinted courtesy of 'The Jesuit Post'.
FRANCE - IRAQ
Chaldean Patriarch on the uncertain future of eastern Christians, a bridge between the West and Islam
by Mar Louis Raphael I SakoThe wars in Iraq, Libya and Afghanistan have made things worse for their peoples, especially minorities. As Western policies have been a failure, fundamentalism has grown with the Arab Spring losing out to extremism. Muslim authorities have a role in protecting rights and religious freedom. The presence of Christians in the Middle East is crucial for Muslims.

Dossier
by Giulio Aleni / (a cura di) Gianni Criveller
pp. 176
by Lazzarotto Angelo S.
pp. 528
by Bernardo Cervellera
pp. 240
Copyright © 2003 AsiaNews C.F. 00889190153 All rights reserved. Content on this site is made available for personal, non-commercial use only. You may not reproduce, republish, sell or otherwise distribute the content or any modified or altered versions of it without the express written permission of the editor. Photos on AsiaNews.it are largely taken from the internet and thus considered to be in the public domain. Anyone contrary to their publication need only contact the editorial office which will immediately proceed to remove the photos.