As the Government shutdown in the US enters its second week, the country is just 10-days away from default, and the country’s main creditor China has urged Washington to take decisive steps to avoid bankruptcy and ensure safety of Chinese investments.
China, the US government's largest foreign creditor, is "naturally concerned about developments in the US fiscal cliff", as Reuters quoted Vice Finance Minister Zhu Guangyao giving the Chinese government's first public response to the Oct 17 US deadline for raising the debt ceiling.
China currently holds 22.85 percent of the US $16.7trln debt, which makes it the biggest US creditor.
Treasury Secretary Jacob Lew calculated the US would run out of money by October 17 and have less than $30 billion cash in hand if Congress fails to agree on its spending plans.
"We ask that the United States earnestly takes steps to resolve in a timely way before October 17 the political (issues) around the debt ceiling and prevent a US debt default to ensure safety of Chinese investment in the United States and the global economic recovery," Zhu said.
In 2011 a similar budget deadlock cost the US its triple-A rating, with Standard & Poors downgrading the country to AA+.
"We hope the United States fully understands the lessons of history," Zhu said.