China urges US to prevent debt default

BEIJING -- China on Monday urged the United States to take concrete measures before Oct 17 to avoid defaulting on its government bonds and ensure the safety of Chinese investments in the United States.

"The US is the world's biggest economy and a major country issuing reserve currency. Safeguarding the debt is of vital importance to the economy of the US and the world," China's Vice Minister of Finance Zhu Guangyao told a press briefing held by the Chinese Foreign Ministry.

"This is the United States' responsibility," he said, adding that China hopes the US will address the challenges facing its economy, solve the government disputes over the debt ceiling and keep the recovery process in the US, and the world, going.

Zhu noted that as the world's two biggest economies China and the US maintain close economic ties, and that China is naturally concerned about the deadlock of the US fiscal situation and reasonably asks the US side to ensure the safety of China's investment in the United States.

He said that not much time is left for solving the issue, pointing out there is only one week before the Oct 17 deadline on raising the debt limitation.

He urged the US administration to speed up discussion with Congress and fully realize the importance to the US interests in preventing debt default.

Under the current situation, Zhu advised the US Treasury Department to take the first step to ensure the interest payments of the government bonds and then pay the principles through the replacement of old debt by new.

He underscored the payment of the interest payments and urged the US administration to think it over seriously.