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Chinese premier expresses confidence in US economy

Updated: 2011-08-19 17:37

(Xinhua)

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BEIJING - Chinese Premier Wen Jiabao said on Friday that he is "fully confident" that the US economy will overcome its difficulties and return to prosperity.

Wen made the remarks during an afternoon meeting with visiting US Vice President Joe Biden.

"The prosperity and stability of the United States are important for the whole world," Wen said at the meeting, which was held in Zhongnanhai, the Chinese government's central compound.

Wen said that Biden conveyed a "very strong determination" to enhance Sino-US relations during the first three days of his visit.

"You have clearly told the Chinese people that the United States is committed to preserving the integrity of its public debt, including its safety, liquidity and inflation-resistance, which will undoubtedly enhance investors' confidence," he said.

China remained the largest foreign holder of US debt as of the end of June, holding about $1.16 trillion in US Treasury securities.

Biden said the United States will ensure the safety of its debt not only for the sake of China, but also for US citizens, who own 85 percent of the country's total debt.

Biden began his six-day official visit to China on Wednesday. His visit comes on the heels of an unprecedented downgrade of the United States' credit rating earlier this month, which has created global uncertainty about the safety of dollar assets.

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