China demonstrating that it's buying of US assets is no sure thing!

China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by "reckless policies," said Yu Yongding, a former adviser to the central bank.

Premier Wen Jiabao said last month his government’s strategy for investing would focus on safeguarding the value of China’s $1.95 trillion foreign reserves.

China may voice its concerns over U.S. government finances and the potential for a weaker dollar when Secretary of State Hillary Clinton visits China on Feb. 20, according to He Zhicheng, an economist at Agricultural Bank of China, the nation’s third-largest lender by assets.

"In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe," said He in Beijing. "That would be one of the prerequisites for more purchases."


related links:

http://www.bloomberg.com/apps/news?pid=20601009&sid=aG_eSDsmh7rw&refer=bond