A Disdainful View From Beijing On America’s Debt Ceiling Debate

China has made little secret of its disdain for the way the U.S. political establishment has handled the debate over raising the federal government’s debt ceiling. These extracts from an article carried by Xinhua captures the tone:

The months-long tug of war between Democrats and Republicans, however, failed to defuse Washington’s debt bomb for good, only delaying an immediate detonation by making the fuse an inch longer…

Meanwhile, the madcap farce of brinkmanship has disclosed yet another ticking bomb in the heartland of the sole superpower in the world — the crippling tendency to politicize the economics while trivializing the politics…

Should Washington continue turning a blind eye to its runaway debt addiction, its already tarnished credibility will lose more luster, which might eventually detonate the debt bomb and jeopardize the well-being of hundreds of millions of families within and beyond the U.S. borders…

Whether Washington’s political elite, intent on grabbing maximum political gain, intended the chaos or not, it is advisable that one should not mess around on the edge of an abyss. Given the heft of the United States, such a dangerous practice is tantamount to a bomb of mass destruction. If left unattended, it might explode, and the whole world will have to deal with the shock waves.

Meanwhile, while Americans wring their hands over whether their credit rating agencies will downgrade their country’s AAA rating despite the deal the U.S. Congress has passed, Chinese rating agency Dagong has gone ahead and done so. It downgraded the U.S.’s credit rating from A+ to A, with a negative outlook. China is the largest foreign holder of U.S. government debt, at $1.15 trillion in May. It has been trying quietly to scale back the growth in its exposure, though, truth be told, with the euro in crisis, it doesn’t have a lot of overly attractive alternatives so is stuck with what it has got.

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2 Comments

Filed under China-U.S., Economy

2 responses to “A Disdainful View From Beijing On America’s Debt Ceiling Debate

  1. Thanks so much for the insight. It’s sometimes hard to find out how others view America, as the US gets so wrapped up in it’s own problems.

  2. Pingback: Washington’s Downgraded Debt And Beijing’s Tied Hands | China Bystander

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