Chinese Premier Wen Jiabao (溫家寶) expressed concern yesterday about its holdings of Treasuries and other US debt, appealing to Washington to safeguard their value, and said Beijing was ready to expand its stimulus if economic conditions worsen.
Saying Beijing is the biggest foreign creditor to the US, Wen called on Washington to see that its response to the global slowdown does not damage the value of Chinese holdings.
LOANS
“We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” Wen said at a news conference following the closing of China’s annual legislative session.
“I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets,” Wen said.
Analysts estimate that nearly half of China’s US$2 trillion in currency reserves are in US Treasuries and notes issued by other government-affiliated agencies. Last month, during her visit to China, US Secretary of State Hillary Rodham Clinton sought to reassure Beijing that Treasury notes and other government debt would remain a reliable investment.
Wen’s comments foreshadowed possible appeals to US President Barack Obama, who will meet with Chinese President Hu Jintao (胡錦濤) at a London summit of leaders of the G20 group of major economies on April 2 to discuss the global financial crisis.
Chinese Foreign Minister Yang Jiechi (楊潔箎) said on Wednesday during a visit to Washington that Beijing wanted to “strengthen macroeconomic policy dialogue” with the Obama administration.
Wen also expressed confidence China could emerge from its economic slump “at an early date,” but said Beijing was ready to expand its 4 trillion yuan (US$586 billion) stimulus to boost growth in the world’s third-largest economy.
Communist leaders worry about rising job losses and possible unrest amid a trade slump that saw Chinese exports fall 25.7 percent last month from a year earlier. They have promised to spend heavily to create jobs and boost exports.
‘AMMUNITION’
“We already have our plans ready to tackle even more difficult times, and to do that we have reserved adequate ammunition,” the premier said. “That means that at any time we can introduce new stimulus policies.”
Wen and other officials point to rising bank lending, power demand and other signs the stimulus is taking effect. But growth in retail sales is weakening, suggesting it has yet to spur private sector spending and investment, which analysts say will be key to its success.
Wen said Beijing could its growth target this year of 8 percent, despite skepticism by private sector economists, who expect as little as 5 percent.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS