Beijing calls on US to resolve debt ceiling issue 'to ensure safety of Chinese investments'

A senior Chinese official yesterday voiced concern over a looming deadline for raising the US debt ceiling, saying the "clock is ticking" to avoid a default that could seriously damage China's economic interests.

"As the world's largest economy and the issuer of the major reserve currency in the world, it is important for the US to maintain the creditworthiness of its Treasury bonds," vice-finance minister Zhu Guangyao said.

"It is important for the US economy as well as the global economy."

Zhu spoke with the US government in a partial shutdown since the start of this month due to a dispute between Republicans and Democrats over funding for Barack Obama's signature health care programme that has prevented the passage of key spending legislation.

An even more serious problem is the prospect that the US government will not have enough cash to pay its bills if an agreement to raise its debt ceiling is not reached by October 17.

Treasury Secretary Jacob Lew said on Sunday the US will have reached the maximum it is allowed to borrow on that date, and with only US$30 billion cash in hand to meet obligations that can run to US$60 billion a day, it will quickly face default.