From the AP:
China’s premier expressed concern Friday about its holdings of Treasuries and other U.S. debt, appealing to Washington to safeguard their value, and said Beijing is ready to expand its stimulus if economic conditions worsen.
What’s major news here is not the concern itself over U.S. debt – but the fact that China actually vocalized it. The country has for a long time been dependent on foreign countries buying U.S. government bonds and such, as we finance deficit spending to indulge lavish domestic policy programs and and massive military spending simultaneously.
Frankly, if the Chinese have concerns I think it’s a good thing they aired them. Perhaps it will wake up Washington policy makers to reality – or at least the fact that yes, we actually need to deal with it.