SHANGHAI, China — Chinese Premier Wen Jiabao voiced concerns Friday about the security of China’s massive investments in U.S. government debt, even as he expressed confidence in the economic leadership of President Barack Obama.
“To be honest, we are a little bit worried,” Wen said, speaking after the close of China’s annual legislative session. “We have loaned huge amounts of money to the United States, so of course, we have to be concerned. . . . We hope the United States honors its word and ensures the safety of Chinese assets.”
China is the United States’ biggest foreign creditor. About one-half of China’s estimated $2 trillion in foreign exchange reserves, the largest in the world, are invested in U.S. Treasury and other government-backed bonds. China’s continued holdings and future purchases of American debt are seen as an important part of financing Obama’s $787 billion economic stimulus plan.
Wen’s comments were unusual in that he has rarely spoken up on the issue, nor in such frank terms.
