China has roundly condemned the United States of America for its “debt addiction” and “short sighted” political wrangling. China, popularly called as the Asian Tiger, said the world needed a new stable global reserve currency.
China gave its first official comments on the United States losing its gilded AAA long-term credit rating from Standard & Poor’s in a harshly-worded commentary by the official Xinhua news agency on Saturday.
China also said further credit downgrades would very likely undermine the world economic recovery and trigger fresh rounds of financial turmoil.
“International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country,” Xinhua said.
“China, the largest creditor of the world’s sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China’s dollar assets,” Xinhua said.