BEIJING, July 14 China's Foreign Ministry said
on Thursday that it hoped the U.S. government would take a
responsible attitude to protect investor interests, in Beijing's
latest expression of concern about the possibility of Washington
briefly defaulting on its debt.
Moody's Investors Service warned on Wednesday that the
United States may lose its top credit rating in the coming weeks
if the limit on American borrowing was not raised.
"We hope that the U.S. government adopts responsible
policies and measures to guarantee the interests of investors,"
ministry spokesman Hong Lei said at a regular news briefing in
Beijing, when asked about the Moody's report.
He did not elaborate.
China, the United States' biggest creditor with more than $1
trillion in Treasury debt as of March, fears even a small
default could destabilise the global economy and sour political
The U.S. Treasury Department has warned the country will
face default if Congress does not lift the $14.3 trillion debt
ceiling by Aug. 2. That could push the country back into
recession and upend financial markets across the globe.
Beijing has repeatedly warned that loose U.S. monetary
policy threatens the dollar, but it has continued to accumulate
dollar assets at the same time, adding about $260 billion of
Treasury securities last year, according to U.S. data.
(Reporting by Ben Blanchard and Sabrina Mao; Editing by
Jonathan Hopfner and Ken Wills)