China's premier worries about US Treasury holdings

China's premier calls on Washington to guarantee safety of Chinese holdings of US Treasuries

BEIJING (AP) -- China's premier said Friday he is worried about the safety of the enormous holdings of U.S. Treasuries and other debt and called on Washington to maintain a credible economic policy.

Premier Wen Jiabao noted that that China is now the largest creditor to the United States and as such wants to make sure that U.S. policies dealing with the financial crisis do not damage the value of Chinese holdings.
"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 his annual news conference. He called on Washington "to honor its words, stay a credible nation and ensure the safety of Chinese assets."

Analysts estimate that nearly half of China's $2 trillion in currency reserves are invested in U.S. Treasuries and notes issued by other government-affiliated agencies.

Last month, during her visit to China, Secretary of State Hillary Rodham Clinton sought to reassure Beijing that its massive holdings of U.S. Treasuries and other debt would remain a reliable investment.