China and the US Debt Debacle

“A Chinese People’s Daily report this week stating that the ‘credibility of U.S. sovereign debt has steadily declined since the eruption of the subprime crisis’ makes clear that while China currently has few alternatives to buying U.S. Treasuries in order to keep its currency low and exports high, Beijing has medium-term plans to not only wean itself from U.S. Treasuries but also to establish the Chinese yuan as a global reserve currency,” says Asia Society Executive Vice President Jamie Metzl. “Although the cost to the United States of this happening would be severe, Washington is showing far too little ability to take responsible action now to prevent this from happening.”

Jamie is in New York. To arrange an interview, contact the Asia Society communications department at 212-327-9271 or