US debt deal a temporary fix

Another possible impact on China would be on exports as the US government is likely to reduce spending, said Alfred Schipke, the International Monetary Fund's senior resident representative in China.

Schipke said the priority for China is to advance financial reforms to prevent a further buildup of risks, and foster a more efficient allocation of investment, and boost household capital income.

Christine Lagarde, head of the IMF, urged the US "to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner".

Dagong estimated that the depreciation of the US dollar had caused a loss of $628.5 billion to foreign creditors since the US government began to monetize its debts by using the quantitative easing policy to maintain its government solvency.

Experts also slammed the role played by the US political system in exacerbating the crisis.

"State debt is an important benchmark of a country's financial market. A default will disrupt financial stability, which is suicidal for Americans," said Zhang Yuyan, director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences.

"Elites in American society, Democrats and Republicans, are now deeply divided over the future direction of the country. Their previous consensus is torn apart, which is associated with the stagnation of the US and global economy," said Zhang.

Shen Dingli, vice-dean of the Institute of International Affairs at Fudan University in Shanghai, said, "Washington has a sound political system to find a balance of power, which many times prevents bad policymaking, but the system can be low in efficiency, and wasteful in capital and energy.