Vice President Joe Biden sought to ease the concerns of Chinese officials worried about America's debt problems during a visit to the Asian powerhouse last week.
"We appreciate and welcome your concluding that the United States is such a safe haven, and we appreciate your investment in U.S. Treasuries," Biden said, on the second day of his four-day trip.
"And very sincerely, I want to make clear that you have nothing to worry about."
China currently holds about $3.2 trillion in foreign currency reserves. About 70 percent of that is denominated in dollars. America borrows about $4 billion per day to finance its budget deficits. Around half of that comes from China.
After last month's debt ceiling showdown that brought the country to the brink of default, some Chinese officials have publicly questioned America's fiscal and political situation.
Biden told the Chinese officials that it wouldn't be wise to bet against America.
"I have absolute, unequivocal confidence in the strength and vitality and the growth of the American economy," Biden said.
"No one's ever made money betting against America."
Part of the reason that America will not default on its obligations, Biden said, is due to the fact that Americans themselves hold much of the debt.
"U.S. Treasuries — we're going to take care of very closely, not merely because China owns 8 percent of them, but because the Americans own 85 percent of them," Biden said.
Biden's reassurances seemed to work.
"You've sent a very clear message to the Chinese public, that the United States will keep its word and its obligations with regard to its government debt," Chinese Premier Wen Jiabao said.
"It will preserve the safety, liquidity and value of U.S. Treasurys. I'm sure that will give a boost to the investors' confidence in the U.S. economy."
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