NPC, CPPCC Annual
Premier Wen Jiabao meets
Chinese Premier Wen Jiabao answers
questions during a press conference after the closing meeting of the
Second Session of the 11th National People's Congress (NPC) at the Great
Hall of the People in Beijing, capital of China, March 13, 2009. The
annual NPC session closed on Friday. (Xinhua Photo)
BEIJING, March 13 (Xinhua) -- Chinese Premier Wen
Jiabao said here Friday he is "a little bit worried" about the safety of Chinese
assets in the United States, urging the U.S. government to ensure the security
of those assets.
"We lent such huge fund to the United States and of
course we're concerned about the security of our assets and, to speak
truthfully, I am a little bit worried," said Wen at a press conference after the
close of the annual parliament session.
He urged the U.S. government to keep to its commitment and ensure the safety of the Chinese assets in the United States.
China has invested its huge foreign exchange reserves
in low-risk but low-yield assets, such as U.S. government bonds, to play it
"China is indeed the largest creditor of the United
States, which is the world's biggest economy. We are extremely interested in
developments in the U.S. economy," said Wen, adding that he is expecting the
effect of the measures taken by the U.S. administration of President Barack
Obama to counter the international financial crisis.
Wen reiterated China's principle of guaranteeing the
"safety, liquidity and good value" of its foreign exchange reserves and
diversifying the investment of the reserves.
"On the foreign reserves issue, the first
consideration is our national interest," said Wen. "But we also have to consider
the stability of the overall international financial system, as the two factors
"Currently, our reserves are generally safe," he
Meanwhile, Wen said the country's foreign reserves
will be mainly used in overseas investment and trade, as the reserves are
actually the liabilities of the central bank instead of fiscal fund.
He said in its bid to explore both domestic and
overseas markets and utilize resources in both markets, China will seek make a
better use of its reserves for the purpose of supporting domestic undertakings
and improving people's living standards.
China's foreign exchange reserves hit a record 1.95
trillion U.S. dollars at the end of 2008, the largest in the world and far
exceeding that of Japan, the second-largest foreign exchange holder with 1.03
trillion U.S. dollars.
According to the U.S. Treasury, China held 681.9
billion U.S. dollars worth of U.S. government bonds as of November.