BEIJING (Reuters) - The United States must ease Beijing's worries about its vast U.S. debt holdings, China's official media said on Wednesday, ahead of a visit by Vice President Joe Biden, warning that mishandling ties would lead to a "roller-coast ride" that would sap global confidence.
Commentaries in the domestic and overseas editions of the People's Daily, the official newspaper of China's ruling Communist Party, spelled out Beijing's chief concerns ahead of Biden's arrival in Beijing on Wednesday evening local time.
China wants Biden to reinforce U.S. assurances that its holdings of dollar assets and U.S. Treasury debt remain safe, despite Standard & Poor's recent downgrade of the United States' long-term credit outlook, the paper indicated.
"China, as the biggest foreign creditor of the United States and the largest foreign holder of dollar assets, is naturally more concerned about U.S. policies than others," said a commentary in the overseas edition of the People's Daily.
An English-language commentary from China's official Xinhua news agency amplified that point.
"Biden is expected to assure Chinese leaders of Washington's capacity, will and commitment to tackle its fiscal and economic challenges," said Xinhua.
"What Washington should do is shoulder the global responsibility befitting an economic giant," it said, also urging the United States to "carry out responsible and effective measures to cure its debt addiction."
Since S&P cut its credit rating for long-term U.S. debt in early August, Chinese state media have accused Washington of reckless fiscal policies that have created uncertainty about Beijing's big holdings of dollar assets.
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