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.
REMINDER: Of the 6.78 million doses of flu vaccine Taiwan purchased for this flu season, about 200,000 are still available, an official said, following Big S’ death As news broke of the death of Taiwanese actress and singer Barbie Hsu (徐熙媛), also known as Big S (大S), from severe flu complications, the Centers for Disease Control (CDC) and doctors yesterday urged people at high risk to get vaccinated and be alert to signs of severe illness. Hsu’s family yesterday confirmed that the actress died on a family holiday in Japan due to pneumonia during the Lunar New Year holiday. CDC Deputy Director-General Tseng Shu-hui (曾淑慧) told an impromptu news conference that hospital visits for flu-like illnesses from Jan. 19 to Jan. 25 reached 162,352 — the highest
COMBINING FORCES: The 66th Marine Brigade would support the 202nd Military Police Command in its defense of Taipei against ‘decapitation strikes,’ a source said The Marine Corps has deployed more than 100 soldiers and officers of the 66th Marine Brigade to Taipei International Airport (Songshan airport) as part of an effort to bolster defenses around the capital, a source with knowledge of the matter said yesterday. Two weeks ago, a military source said that the Ministry of National Defense ordered the Marine Corps to increase soldier deployments in the Taipei area. The 66th Marine Brigade has been tasked with protecting key areas in Taipei, with the 202nd Military Police Command also continuing to defend the capital. That came after a 2017 decision by the ministry to station
TRIP TO TAIWAN: The resumption of group tours from China should be discussed between the two agencies tasked with handling cross-strait tourism, the MAC said President William Lai (賴清德) yesterday reassured China-based businesspeople that he would follow former president Tsai Ing-wen’s (蔡英文) cross-strait policy to facilitate healthy and orderly exchanges with Beijing and build a resilient economy. “As president, I have three missions. First, I will follow president Tsai’s ‘four commitments’ to ensure that the country continues to exist and survive,” Lai told participants at a Lunar New Year event in Taipei hosted by the Straits Exchange Foundation (SEF). Lai said his second mission is to uphold the “four pillars of peace” by bolstering national defense, developing a growing and resilient economy, building partnerships with
‘INVESTMENT’: Rubio and Arevalo said they discussed the value of democracy, and Rubio thanked the president for Guatemala’s strong diplomatic relationship with Taiwan Guatemalan President Bernardo Arevalo met with US Secretary of State Marco Rubio in Guatemala City on Wednesday where they signed a deal for Guatemala to accept migrants deported from the US, while Rubio commended Guatemala for its support for Taiwan and said the US would do all it can to facilitate greater Taiwanese investment in Guatemala. Under the migrant agreement announced by Arevalo, the deportees would be returned to their home countries at US expense. It is the second deportation deal that Rubio has reached during a Central America trip that has been focused mainly on immigration. Arevalo said his