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Fallout: The Financial Crisis

China to U.S.: Maintain your credit

Scott Tong Mar 13, 2009
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Fallout: The Financial Crisis

China to U.S.: Maintain your credit

Scott Tong Mar 13, 2009
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TEXT OF STORY

Steve Chiotakis: Well, stimulus plan talks in Japan and China are helping boost stocks. This weekend, the talk will likely prevail as world leaders meet ahead of next month’s G20 summit. They’re looking to spark recovery in their collective economies, and the Chinese prime minister also has a message for the United States. From Shanghai, here’s Marketplace’s Scott Tong.


Scott Tong: Prime Minister Wen Jiabao told a press conference that Beijing has “adequate ammunition” to roll out new stimulus any time. Chinese officials faked out the markets last week, suggesting that a new package was coming, and then it never happened. Economists say the point today is Beijing is ready and able to supersize its half trillion dollar stimulus.

Still, Prime Minister Wen sounded less assuring on another topic: loans to the United States. He said he was “concerned about the safety of our assets.” As in $700 billion in Treasury bonds.

Economist Wu Xinbo is with Fudan University:

Wu Xinbo: We are not expecting the U.S. economic recovery in the next several months. But we hope the Obama administration will address our concern in a direct way.

The prime minister asked the U.S. to “maintain its good credit.” By one measure, U.S. treasuries have fallen 2.7 percent this year. But still, they’re deemed one of the safest investments on Earth.

In Shanghai, I’m Scott Tong for Marketplace.

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