U.S. Secretary of State Hillary Rodham Clinton says Washington and Beijing must work together if the world is to rebound from the financial crisis and she wants the Chinese to remain committed to investing in America.
“I don”t think it”s realistic to expect that we will see global recovery without Chinese and American cooperation and leadership,” she said during an interview Sunday with the popular talk show “One on One.”
With the export-heavy Chinese economy reeling from the U.S. downturn, Clinton has sought in meetings with President Hu Jintao, Foreign Minister Yang Jiechi and Premier Wen Jiabao to reassure Beijing that its massive holdings of U.S. Treasury notes and other government debt would remain a solid investment.
Yang responded that China wants to see its foreign exchange reserves — the world”s largest at $1.95 trillion — invested safely and to continue working with the United States.
“I certainly do think that the Chinese government and central bank are making a smart decision by continuing to invest in Treasury bonds,” Clinton said in the interview, shortly before departing for Washington. “It”s a safe investment. The United States has a well-deserved financial reputation.”
To boost the economy, the U.S has to incur more debt, she said. “It would not be in China”s interest if we were unable to get our economy moving,” Clinton said. “So by continuing to support American Treasury instruments, the Chinese are recognizing our interconnection. We are truly going to rise or fall together. We are in the same boat and, thankfully, we are rowing in the same direction.
