US debt may face another down­grade

China Daily (Canada) - - NEWSCAPSULE -

A po­ten­tial rat­ings cut in US debt by the Chi­nese agency Danong would most likely not af­fect Chi­nese in­vestors’ out­look on the US or have an im­pact on the US do­ing busi­ness with China, ac­cord­ing to Joseph Gagnon, se­nior fel­low at the Peter­son In­sti­tute for In­ter­na­tional Eco­nom­ics.

“We’d be bet­ter off if China wouldn’t buy our bonds; we’d rather them buy our ex­ports,” he said. “China earns dol­lars when they sell ex­ports to the US, and they have to spend those dol­lars some­how.”

Gagnon was re­spond­ing to a Reuters story that quoted the chair­man of Dagong Global Credit Rat­ing Co, Guan Jianzhong, as say­ing that “the trend of rat­ing cuts does ex­ist if the US debt level con­tin­ues to rise and its eco­nomic fun­da­men­tals don’t im­prove.”

XIN­HUA

The Long March-3B car­rier rocket car­ry­ing China’s Chang’e-3 lu­nar probe blasted off from the launch pad at Xichang Satel­lite Launch Center, South­west China’s Sichuan prov­ince on Dec 2.

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